The following amortization and interest schedule reflects the issuance of 10-year bonds by Teal Corporation on January 1, 2014, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Cash Amount Unamortized Year Interest Carrying Value 1/1/2014 $16,183 $ 127,017 2014 $14,320 $15,242 15,261 127,939 2015 14,320 15,353 14.228 128,972 2016 14,320 15,477 13,071 130.129 2017 14,320 15,615 11,776 131,424 2018 14,320 15,771 10.325 132,875 2019 14,320 15,945 8,700 134,500 2020 14,320 16,140 6,880 136,320 2021 14,320 16,358 4,842 138,358 2022 14,320 16,603 2.559 140,641 2023 14,320 16,879 143,200 (a) Indicate whether the bonds were issued at a premium or a discount. Discount (b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method. (c) Determine the stated interest rate and the effective-interest rate. (Round answers to decimal places, e.g. 18%.) (c) Determine the stated interest rate and the effective-interest rate. (Round answers to decimal places, e.g. 18%.) The stated rate % The effective rate % se (d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2014. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit January 1, 2014 (e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2014. (Interest is paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2014 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Teal Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit December 31, 2014 (f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Teal Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit
