On January 1, 2009 Mykoo Corporation issued $1 million in five-year, 10% serial bonds to be repaid in the amount of $200,000 on January 1, 2010, 2011, 2012, 2013, and 2014. Interest is payable at the end of each year. The bonds were sold to yield a rate of 12%. Information on present value and future amount factors is as follows:

Required
1. Prepare a schedule showing the computation of the total amount received from the issuance of the serial bonds. Show supporting computations in good form.
2. Assume the company originally sold the bonds at a discount of $46,498. Prepare a schedule of amortization of the bond discount for the first two years after issuance, using the interest (effective rate) method. Show supporting computations in goodform.

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Present Value of an Future Amount of an Ordinary Annuity of Ordinary Annuity of $1 for 5 Years 10% 3.7908 12% 3.6048 $1 for 5 Years 10% 6.1051 12% 6.3528 Number of Years Present Value of $1 10% 9091 8264 7513 6830 6209 Future Amount of S1 12% 12% 8929 7972 7118 6355 .5674 10% 1.1000 1.2100 1.3310 1.4641 1.6105 1.1200 1.2544 1.4049 1.5735 1.7623 4