The following amortization and interest schedule reflects the issuance of 10-year bonds by Tamarisk 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						$13,940		$ 232,760
2011		$27,137		$27,931		13,146		233,554
2012		27,137		28,026		12,257		234,443
2013		27,137		28,133		11,261		235,439
2014		27,137		28,253		10,145		236,555
2015		27,137		28,387		8,895		237,805
2016		27,137		28,537		7,495		239,205
2017		27,137		28,705		5,927		240,773
2018		27,137		28,893		4,171		242,529
2019		27,137		29,103		2,205		244,495
2020		27,137		29,342				246,700

(a) Indicate whether the bonds were issued at a premium or a discount.

DiscountPremium

(b) Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method.

Effective interest methodStraight-line method

(c) Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, e.g. 18%.)

The stated rate			%
The effective rate			%

(d) On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2011. (If no entry is required, select "No Entry" for the account titles and enter 0 for 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, 2011

(e) On the basis of the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2011. (Interest is paid January 1.) (If no entry is required, select "No Entry" for the account titles and enter 0 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, 2011

(f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2018. Tamarisk Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for 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, 2018December 31, 2018
January 1, 2018December 31, 2018

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