On Jan 2, Lincoln Motors issued 1,000, $1000 bonds to finance a new showroom. The bonds are 5-year, 6% bonds that pay interest on Dec 31 each year. When issued investors required 7% interest and the bonds are due on Dec 31, year 5.

a. Compute the selling price of the bonds

b. Prepare entry to record the sale of the bonds

c. prepare amortization table for bonds

d. prepare journal entry for first annual interest payment