accouting hw questionwp4 494340

WP4.1 (Analysis of Amortization Schedule and Interest Entries) The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet Corporation on January 1, 2006, and the subsequent interest payments and charges. The company’s year-end is December 31, and financial statements are prepared once yearly. ?Amortization Schedule???Year?Cash?Interest?Amount?Unamortized?Book Value???1/1/2006?$16,280????$8,362??$139,638????2006?16,280??$16,757??7,885??140,115????2007?16,280??16,814??7,351??140,649????2008?16,280??16,878??6,753??141,247????2009?16,280??16,950??6,083??141,917????2010?16,280??17,030??5,333??142,667????2011?16,280??17,120??4,493??143,507????2012?16,280??17,221??3,552??144,448????2013?16,280??17,334??2,498??145,502????2014?16,280??17,460??1,318??146,682????2015?16,280??17,598????148,000??????????????? ?? ?Indicate whether the bonds were issued at a premium or a discount? ?????????? ?? ?Is the amortization schedule based on the straight-line method or the effective interest method? ?????????? ?? ?Determine the stated interest rate and the effective interest rate. Stated Rate?%??Effective Rate?%???????????? ?? ?On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2006. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date?Description/Account?Debit?Credit??01/01/06????????????????????????? ?? ?On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2006. (Interest is paid January 1.) (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) Date?Description/Account?????This document was truncated here because it was created in the Evaluation Mode.