interest rate at the date of issuance was 10%, and the standard bonds pay interest semi-annually. Read the requirements. Requirement 1. Prepare an effective-interest amortization table for the bonds through the first three interest payments. (Round your answers to the nearest whole dollar.) \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Northern Autoparts } \\ \hline \multicolumn{6}{|c|}{ Amortization Table } \\ \hline & A & B & C & D & E \\ \hline \begin{tabular}{l} Semi-annual \\ Interest Date \end{tabular} & \begin{tabular}{c} Interest Payment \\ (3.5\% of Maturity \\ Value) \\ \end{tabular} & \begin{tabular}{c} Interest Expense (5\% of \\ Preceding Bond Carrying \\ Amount) \\ \end{tabular} & \begin{tabular}{l} Bond Discount \\ Amortization (B \\ - A) \\ \end{tabular} & \begin{tabular}{l} Bond Discount \\ Account Balance \\ (Preceding D - C) \\ \end{tabular} & \begin{tabular}{l} Bond Carrying \\ Amount \\ ($130,000D) \end{tabular} \\ \hline \multicolumn{6}{|l|}{ January 31,201} \\ \hline \multicolumn{6}{|l|}{ July 31,201} \\ \hline \multicolumn{6}{|l|}{ January 31,202} \\ \hline July 31,20X2 & & & & & \\ \hline \end{tabular} Requirement 2. Record Northern's issuance of the bonds on January 31,201, and payment of the first semi-annual interest amount and amortization of the bonds on July 31,201. Start by recording the issuance of bonds on January 31,201. (Record debits first, then credits. Exclude explanations from journal entries.) Requirement 3. How much cash did Northern Autoparts borrow on January 31,201 ? How much cash will Northern Autoparts pay back at maturity on January 31,206 ? Amount of cash Northern Autoparts borrowed on January 31, 20X1: Amount of cash Northern Autoparts will pay back on January 31, 20X6: Requirement 4. How much cash interest will Northern Autoparts pay each six months? Amount of cash interest Northern Autoparts will pay each six months: In this step, enter the interest expense amounts Northern Autoparts will report on July 31, 20X1, and on January 31,202. Interest expense Northern Autoparts will report on July 31, 20X1: Interest expense Northern Autoparts will report on January 31, 20X2: Why does the amount of interest expense increase each period? Interest expense increases because the as the bonds move toward maturity, and the must be amortized over the life of the bond. The bond carrying amount produc amount of interest expense each period