3 - Chapter 11 On December 31, 2019, Potter Corporation issued 2,000,000, 6%, 5-year bonds for 1,837,750. The bonds were sold to yield an effective-interest rate of 8%. Interest is paid annually on December 31. The company uses the effective-interest method of amortization. Potter Corporation reports the following amounts in their 2020 financial statements: Total assets Total liabilities Total equity Interest expense Income tax expense Net income At December 31, 2020 For the Year 2020 $2,000,000 1,100,000 $20,000 100,000 150,000 Instructions a) Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round to the nearest dollar.) b) Prepare the journal entries that Potter Corporation would make on December 31, 2019, and December 31, 2020, and December 31, 2021 related to the bond issue. c) Compute the December 31, 2020, amount of equity. d) Compute the debt to assets ratio at December 31, 2020. e) Compute times interest earned for 2020