On January 1, 2018, Swan Company issued bonds with the following characteristics:

Face Value (per bond)

$ 1,000

Number of bonds issued

2,000

Coupon (stated) rate

7%

Maturity date

5

Interest payments

Annually

Prevailing rate of interest in the market on January 1, 2018 = 8%

1) Determine the total value of the bonds on January 1, 2018

2) Provide an amortization schedule with the following columns (5 points):
Date	Interest Payment	Interest Expense	Amortization	Carrying Value
1/1/2018
12/31/2018
12/31/2019
12/31/2020
12/31/2021
12/31/2022 3) Provide the January 1, 2018 journal entry