On January 1, 2012, Mykoo Corporation issued $1 million in 5-year, 10% serial bonds to be repaid in the amount of $200,000 on January 1, 2013, 2014, 2015, 2016, and 2017. 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 2 years after issuance, using the interest (effective rate) method. Show supporting computations in good form, rounding to the nearest dollar.

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Present Value of an Ordinary Annuity of $1 for 5 Years Future Amount of an Ordinary 10% 3.7908 12% 3.6048 Annuity of S1 for 5 Years 10% 6.1051 12% 6.3528 Present Value of $1 Future Amount of $1 Number of Years 10% 0.9091 0.8264 0.7513 0.6830 0.6209 12% 0.8929 0.7972 0.7118 0.6355 0.5674 10% 1.1000 1.2100 1.3310 1.4641 1.6105 12% 1.1200 1.2544 14049 1.5735 1.7623