USING A PREMIUM NOTE LIABILITY TABLE. For Dingle Corporation, the following note liability table was prepared when a $400,000 issue of 5-year, 7% notes was sold on January 1, 19x2, for $420,000:

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INTEREST PERIOD ENDING INTEREST EXPENSE CASH PAYMENT CHANGE IN LIABILITY BALANCE LIABILITY BALANCE At issue $420,000 6/30/x2 $12,000 $ 14,000 -2,000 418,000 12/31/x2 12,000 14,000 -2,000 416,000 6/30/x3 12,000 14,000 -2,000 414,000 12/31/x3 12,000 14,000 -2,000 412,000 6/30/x4 12,000 14,000 -2,000 410,000 12/31/x4 12,000 14,000 -2,000 408,000 6/30/x5 12,000 14,000 -2,000 406,000 12/31/x5 12,000 14,000 -2,000 404,000 6/30/x6 12,000 14,000 -2,000 402,000 12/31/x6 12,000 414,000 -402,000 -0- REQUIRED: 1. Prepare the entry to recognize the issuance of the notes on January 1, 19x2. 2. Prepare the entry to recognize the first interest payment on June 30, 19x2. 3. What interest expense for this note issue will Dingle report in its 19x3 income statement? 4. Indicate how these notes will appear in Dingle's December 31, 19x5, balance sheet.