Example 2: Kansas Corporation issued $500,000 of 6%, 3-year bonds dated 1/1/91. The bonds pay interest annually on December 31. The market rate of interest on the date of sale was 4% Present Value Factors PV factor for 3 periods at 4% = 0.88900 PVA factor for 3 periods at 4% = 2.77509 PV factor for 3 periods at 6% = 0.83962 PVA factor for 3 periods at 6% = 2.67301 Future Value Factors FV factor for 3 periods at 4% = 1.12486 FVA factor for 3 periods at 4% = 3.12160 FV factor for 3 periods at 6% = 1.19102 FVA factor for 3 periods at 6% = 3.18360 Date Cash Payment Interest Expense Premium Amortization Amount Owed Premium Balance $27,751 $527 751 Issuance (1/1/1) End of Year 1 End of Year 2 End of Year 3 Complete the amortization table above, and answer the following questions: 1) What was the issue price of the bonds? 2) Were the bonds issued at a premium or a discount? Why? 3) Record journal entries for the bond issuance and Year 1 interest