a. Indicate whether the bonds were issued at a premium or a 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.The stated rateThe effective rateDate%d. On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2019. (If no entry isrequired, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amountis entered. Do not indent manually. List all debit entries before credit entries.)January 1,2019%Account Titles and ExplanationDebitCredit The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on January 1,2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements areprepared once yearly.Year1/1/2019202020212019 $12,500202220232024202520262027Cash2028Amortization Schedule$13,30512,50013,40112,50013,51012,50013,63112,50013,76712,500 13,91914,08912,50012,50012,500Interest12,50014,28014,49314,731AmountUnamortized$14,12613,32112,42011,41010,2799,0127,5936,0044,2242,231CarryingValue$ 110,874111,679112,580113,590114,721115,988117,407118,996120,776122,769125,000

The bonds are the financial instruments that are issued to raise money from the market or investors.…

The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on Janu 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statemen prepared once yearly. Year 1/1/2019 2020 2021 2019 $12,500 $13,305 12,500 2022 2023 2024 2025 2026 2027 Cash 2028 Amortization Schedule 12,500 12,500 12,500 12,500 12,500 12,500 12,500 Interest 12,500 13,401 13,510 13,631 13,767 13,919 14,089 14,280 14,493 14,731 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000

The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse Corporation on Janu 2019, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statemen prepared once yearly. Year 1/1/2019 2020 2021 2019 $12,500 $13,305 12,500 2022 2023 2024 2025 2026 2027 Cash 2028 Amortization Schedule 12,500 12,500 12,500 12,500 12,500 12,500 12,500 Interest 12,500 13,401 13,510 13,631 13,767 13,919 14,089 14,280 14,493 14,731 Amount Unamortized $14,126 13,321 12,420 11,410 10,279 9,012 7,593 6,004 4,224 2,231 Carrying Value $ 110,874 111,679 112,580 113,590 114,721 115,988 117,407 118,996 120,776 122,769 125,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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