= Homework: HW ... Question 8, 89-9 (similar... Part 1 of 4 > HW Score: 52.67%, 5.27 of 10 points O Points: 0 of 1 Save Crosby Corporation issued $800,000 of 14%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 12%, 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, 2022? How much cash will Crosby Corporation pay back at maturity? On January 1, 2022, Crosby borrowed At maturity Crosby will pay back 1 Reference Semiannual Interest Date Interest Payment Interest Expense Premium Amortization Premium Account Balance Bond Carrying Amount 91,759 891,759 Jan 1, 2022 Jun 30, 2022 Dec 31, 2022 53,506 2,494 89,265 889,265 56,000 56,000 56,000 53,356 2,644 86,621 886,621 Jun 30, 2023 53,197 2,803 83,818 883,818 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, 2022? 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, 2022, and on December 31, 2022? Does the amount of interest expense increase or decrease each period? Why