Crosby Corporation issued $700,000 of 12%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 10%, and the bonds pay interest semiannually (on June 30 and December 31). Crosby Corporation's year-end is June 30. Crosby 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 Crosby Corporation borrow on January 1, 2019? How much cash will Crosby Corporation pay back at maturity? Crosby borrowed $ L o n January 1, 2019. The company will pay back $ 700000 at maturity. 0 Reference Semiannual Interest Date Interest Payment Bond Carrying Interest Expense Premium Account Balance Premium Amortization Amount 787,235 42,000 Jan 1, 2019 Jun 30, 2019 Dec 31, 2019 Jun 30, 2020 39,362 39,230 39,091 42,000 42,000 87,235 84,597 81,827 78,918 2,638 2,770 2,909 784,597 781,827 778,918 i Requirements Use the amortization table for Crosby Corporation's bonds to answer the following questions: 1. How much cash did Crosby Corporation borrow on January 1, 2019? How much cash will Crosby Corporation pay back at maturity? 2. How much cash interest will Crosby Corporation pay each six months? 3. How much interest expense will Crosby Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why