Santa Corporation issued a bond on January 1 of this year with a face value of $1,000. The bond's coupon rate is 7 percent and interest is paid once a year on December 31. The bond matures in three years. The annual market rate of interest was 11 percent at the time the bond was sold. The following amortization schedule pertains to the bond issued:

	Cash Paid	Interest Expense	Amortization	Balance
January 1, Year 1				$902
December 31, Year 1	$70	$99	$29	931
December 31, Year 2	70	102	32	963
December 31, Year 3	70	107	37	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 end of Year 1 and Year 2?

4. Show how the following amounts were computed for Year 2: (a) $70, (b) $102, (c) $32, and (d) $963.