Cease Corporation issued a bond on January 1, 2018 with a face value of $1,000. The bond's coupon rate is 6 percent and interest is paid annually on December 31. The bond matures in three years. The market interest rate was 8 percent at the time the bond was sold. The amortization schedule of the bond issued is shown below: Cash Interest Payment Interest Expense Amortization Book Value of bonds January 1, 2018 $948 December 31, 2018 $60 $76 $16 964 December 31, 2019 60 77 17 981 December 31, 2020 60 79 19 1,000 Required:

1. What was the bond's issue price?

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

3. What amount(s) should be shown on the balance sheet for bonds payable at the year-end of 2018 and 2019?

4. Show how the following amounts: (a) $60, (b) $77, (c) $17, and (d) $981 were computed for 2019 in the amortization schedule.