The following amortization and interest schedule reflects the issuance of 10-year bonds by Capulet 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. Year Cash Interest Amount Unamortized Carrying Value

1/1/2011    $5,651   $94,349
       2011   $11,000   $11,322     5,329     94,671
       2012     11,000     11,361      4,968      95,032
       2013     11,000     11,404      4,564      95,436
       2014     11,000     11,452      4,112      95,888
       2015     11,000     11,507      3,605      96,395
       2016     11,000     11,567      3,038      96,962
       2017     11,000     11,635      2,403      97,597
       2018     11,000     11,712      1,691      98,309
       2019     11,000     11,797        894       99,106
       2020     11,000     11,894 100,000

Required:
a. Indicate whether the bonds were issued at a premium or a discount and how you can determine this fact from the schedule.
b. Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method, and how you can determine which method is used.
c. Determine the stated interest rate and the effective-interest rate.
d. On the basis of the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2014.
e. On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2014. (Interest is paid January 1.)
f. On the basis of the schedule above, prepare the journal entry or entries to reflect the bond transactions and accruals for 2021. Capulet Corporation does not use reversing entries.