On December $31,2022,$ Potter Corporation issued $2,000,000,6\%,5-$year bonds for $1,837,750.$ The bonds were sold to yield an effective$-$interest rate $($ market interest rate$)$ of $8\%.$ Interest is paid annually on December $31.$ The company uses the effective$-$interest method of amortization.

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 $31,2022,$ and December $31,2023,$ and December $31,2024$ related to the bond issue.