Arrowsmith Ltd. purchased $300,000 of corporate bonds on January 1, 2024. The bonds have a three-year term and are paying interest at a rate of 4% semi-annually on July 1 and January 1. The bonds are purchased at $283,748.43 to yield an interest rate of 6%.

Required 

a. Prepare a schedule of interest income and bond discount amortization for this investment. Round to the nearest dollar. 

b. Prepare the necessary journal entries to record the following:
i. The initial investment purchase.
ii. The receipt of the first interest payment.
iii. The receipt of the second interest payment.
iv. The payment of bond principal at maturity.