On May 1, 2021, Aragon Inc. issued eight-year, 8%, $2,000,000 bond that pay interest semi-annually on May 1 and November 1. The market rate of similar instruments on the date of issue was 10%. Aragon Inc. has a year-end of December 31. (6 marks) Required:

Create a bond amortization schedule for the first three years of the bond term. Prepare all journal entries for the first year of the bond (i.e. from May 1, 2021 to May 1, 2022).