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Reference Semiannual Interest Date Interest Payment Interest Expense Premium Amortization Premium Account Balance Bond Carrying Amount 74,773 674,773 2,261 72,512 Jan 1, 2022 Jun 30, 2022 Dec 31, 2022 Jun 30, 2023 36,000 36,000 36,000 33,739 33,626 672,512 670,138 2,374 70,138 33,507 2,493 67,645 667,645 Print Done Afarian Corporation issued $600,000 of 12%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually (on June 30 and December 31). Afarian Corporation's year-end is June 30. Afarian prepared an effective-interest amortization table for the bonds through the first three interest payments as follows: (Click the icon to view the amortization schedule.) Read the requirements. 1. How much cash did Afarian Corporation borrow on January 1, 2022? How much cash will Afarian Corporation pay back at maturity? On January 1, 2022, Afarian borrowed At maturity Afarian will pay back Requirements Use the amortization table for Afarian Corporation's bonds to answer the following questions: 1. How much cash did Afarian Corporation borrow on January 1, 2022? How much cash will Afarian Corporation pay back at maturity? 2. How much cash interest will Afarian Corporation pay each six months? 3. How much interest expense will Afarian Corporation report on June 30, 2022, and on December 31, 2022? Does the amount of interest expense increase or decrease each period? Why? Print Done

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