Question 1 (5 pts) - The following amortization and interest schedule reflects the issuance of 8-year bonds by Hammerhead Corporation on January 1, 2016, and the subsequent interest payments: Instructions (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, 2016. (e) On the basis of the schedule above, prepare the journal entry or entries to reflect the bond accruals on December 31, 2016. (Interest is paid January 1.)
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Question 1 (5 pts) - The following amortization and interest schedule reflects the issuance of 8-yea...
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