The following amortization and interest schedule reflects the issuance of 10-year bonds by Marin Corporation on January 1, 2011, and the subsequent interest payments and charges. The companys year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Year Cash Interest Amount Unamortized Carrying Value 1/1/2011 $54,204 $ 161,796 2011 $21,600 $24,269 51,535 164,465 2012 21,600 24,670 48,465 167,535 2013 21,600 25,130 44,935 171,065 2014 21,600 25,660 40,875 175,125 2015 21,600 26,269 36,206 179,794 2016 21,600 26,969 30,837 185,163 2017 21,600 27,774 24,663 191,337 2018 21,600 28,701 17,562 198,438 2019 21,600 29,766 9,396 206,604 2020 21,600 30,996 216,000

Determine the stated interest rate and the effective-interest rate.

On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2011.