The following amortization and interest schedule reflects the issuance of 10-year bonds by Kingbird Corporation...
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Accounting
The following amortization and interest schedule reflects the issuance of 10-year bonds by Kingbird Corporation on January 1, 2014, and the subsequent interest payments and charges. The companys year-end is December 31, and financial statements are prepared once yearly.
Amortization Schedule
Year
Cash
Interest
Amount Unamortized
Carrying Value
1/1/2014
$55,358
$ 165,242
2014
$22,060
$24,786
52,632
167,968
2015
22,060
25,195
49,497
171,103
2016
22,060
25,665
45,892
174,708
2017
22,060
26,206
41,746
178,854
2018
22,060
26,828
36,978
183,622
2019
22,060
27,543
31,495
189,105
2020
22,060
28,366
25,189
195,411
2021
22,060
29,312
17,937
202,663
2022
22,060
30,399
9,598
211,002
2023
22,060
31,658
220,600
Indicate whether the bonds were issued at a premium or a discount.
Indicate whether the amortization schedule is based on the straight-line method or the effective-interest method.
Determine the stated interest rate and the effective-interest rate. (Round answers to 0 decimal places, e.g. 18%.)
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