1. Groucho Co. sold $4 million of 10-year bonds on December 31, 2020, with interest payable June 30 and December 31 at an annual rate of 12%. The bonds were priced to yield an effective rate of 12%.

d. What is the total amount of interest expense that Groucho will record over the life of the bonds?

e. What will be the net carrying amount of the bonds at December 31, 2024, after the company makes the eighth semiannual cash interest payment?

f. Prepare the entry to record the ninth semiannual payment on June 30, 2025.