Lauren Corporation authorized a $2,000,000, 10-year, 8% bond issue dated January 1, 2018, with semi-interest to be paid each December 3 On January 1, 2018, the bonds were issued for $2,294,000 to yield a market interest rate of 6%.

Required (10 points):

1. Were the bonds sold at par, at a discount, or at a premium?
2. Prepare the entry to record the issuance of the bonds.
3. Prepare the entry to record the interest payment on December 31, 2018, assuming the effective-interest amortization.
4. What is the carrying value or book value of the bonds on December 31, 2018?

Show a step-by-step solution in a structured manner. Please