1. Stein Corporation issued a $2,200 bond on January 1, year 1. The bond specified an interest rate of 8 percent payable at the end of each year. The bond matures at the end of year 3. It was sold at a market rate of 10 percent per year. The following schedule was completed: Use Table 9C.1, Table 9C.2.

	Cash Paid	Interest Expense	Amortization	Carrying amount
Jan 1, year 1 (issuance)
Dec 31, year 2	?	$?	$33	?
Dec 31, year 3	?	?	36	?
Dec 31, year 4	?	?	40	?

a. What was the bonds issue price? (Round "PV factor" to 4 decimal places. Round the final answer to the nearest whole dollar.)

b. Did the bond sell at a discount or a premium? How much was the premium or discount?

c. What amount of cash was paid each year for bond interest?

d. What amount of interest expense should be shown each year on the statement of earnings? (Round "PV factor" to 4 decimal places. Round the final answers to the nearest whole dollar.)

Year	Interest Expense
1
2
3

e. What amount(s) should be shown on the statement of financial position for bonds payable at each year-end? (For year 3, show the balance just before repayment of the bond.) (Round "PV factor" to 4 decimal places. Round the final answers to the nearest whole dollar.)

Year	Bonds Payable
1
2
3

f. What method of amortization was used? Effective-interest amortization or Straight-line amortization

g. Did the company use the preferred method of amortization? Yes or No?