On January 1, 2008, MyKoo Corporation issued \($1\) million in five-year, 5% serial bonds to be repaid in the amount of \($200,000\) on January 1 of 2009, 2010, 2011, 2012, and 2013. Interest on the bonds' unpaid balance is due at the end of each year. The bonds were sold to yield 6%.

Required:

1. Prepare a schedule showing the computation of the total amount received from the issuance of the serial bonds.

2. Prepare a schedule of amortization of the bond discount through 2013 using the effective interest rate method.