, 2011, Potter Corporation issued S400 000, 9%, s-year bonds for effective-interest rate of 10%. Interest is paid 4. (16 points) On January I 5384,556. The bonds were sold to yield an ually. The company uses the effective-interest method of amortization. Prepare a bond discount amortization schedule which shows the amortization of discount for 5 years. Prepare the journal entries that Potter Corporation would make in year 3. Table headings can be adjusted if needed. heading you will use. If using different heading, please write the (Cash Payment) Periods Interest Discount on B/P Book Value InterestDiscount PaymentExpense Amortization Balance