Question: On January 1 , 2 0 2 3 , Norton Corporation purchased an 8 - year, 5 % , $ 4 0 0 , 0

On January 1,2023, Norton Corporation purchased an 8-year, 5%, $400,000 bond. At the time of purchase, the market rate was 6%, so Norton paid $374,878 for the bond. The bond pays interest semi-annually, on June 30 and December 31. Norton has a December 31 year end.
Required:
Assuming that Norton uses the effective interest method to account for its bonds, prepare the following:
A bond amortization schedule for the first two years of the bond.
All journal entries for the first two years of the bond, including the initial purchase.

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