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The following amortization and interest schedule reflects the issuance of 10-year bonds by Martinez Corporation on January 1, 2011, and the subsequent interest payments and charges. The company's year-end is December 31, and financial statements are prepared once yearly. Amortization Schedule Amount Unamortized Carrying Value Year Cash Interest $11,658 $ 194,642 1/1/2011 2011 195,306 2012 196,050 2013 196,883 2014 197,816 2015 $22,693 22,693 22,693 22,693 22,693 22,693 22,693 22,693 22,693 22,693 198,861 $23,357 23,437 23,526 23,626 23,738 23,863 24,004 24,161 24,337 24,539 10,994 10,250 9,417 8,484 7,439 6,269 4,958 3,490 1,846 2016 2017 2018 200,031 201,342 202,810 204,454 206,300 2019 2020 (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. (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 o 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 o 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. Martinez Corporation does not use reversing entries. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts, Credit account titles are automatically indented when amount is entered. Do not indent manually. Date Account Titles and Explanation Debit Credit

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