Question

The following amortization and interest schedule reflects the issuance of 10-year bonds by Bramble 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. PLEASE HAVE STEPS AND EXPLAIN WHERE YOU GOT IT FROM WITH ANSWERS. THANK YOU!

Amortization Schedule
Year		Cash		Interest		Amount Unamortized		Carrying Value
1/1/2014						$39,970		$ 159,130
2014		$21,901		$23,870		38,001		161,099
2015		21,901		24,165		35,737		163,363
2016		21,901		24,504		33,134		165,966
2017		21,901		24,895		30,140		168,960
2018		21,901		25,344		26,697		172,403
2019		21,901		25,860		22,738		176,362
2020		21,901		26,454		18,185		180,915
2021		21,901		27,137		12,949		186,151
2022		21,901		27,923		6,927		192,173
2023		21,901		28,828				199,100

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

select an option: Discount or Premium

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

select a method: Effective interest method or Straight-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		enter percentages rounded to 0 decimal places	%
The effective rate		enter percentages rounded to 0 decimal places	%.

(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 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, 2014	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(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 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, 2014	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

(f) On the basis of the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2021. Bramble 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
choose a transaction date                                                          January 1, 2021December 31, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date                                                          January 1, 2021December 31, 2021	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

Answer 1