McNeill Corporation issued $300,000 of 6%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). McNeil Corporation's year-end is June 30. McNeil 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 McNeil Corporation borrow on January 1, 2019? How much cash will McNeil Corporation pay back at maturity? at maturity McNeil borrowed $ on January 1, 2019. The company will pay back $ 2. How much cash interest will McNeil Corporation pay each six months? McNeil will pay $ cash interest each six months 3. How much interest expense will McNeil Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? McNeil will reports McNeil will reports of interest expense for the six months ending June 30, 2019 of interest expense for the six months ending December 31, 2019. Does the amount of interest expense increase or decrease each period? Why? over The amount of interest expense time and interest expense is based on the each period because the carrying value of the bonds value of the bonds. 0 Reference 1. H Md 2.1 Semiannual Interest Date Interest Payment Interest Expense Premium Amortization Bond Carrying Amount Mcl Jan 1, 2019 Jun 30, 2019 Dec 31, 2019 Jun 30, 2020 Premium Account Balance 49,054 47,035 44,976 42,876 9,000 9,000 9,000 6,981 6,941 6,900 2,019 2,059 2,100 349,054 347,035 344,976 342,876 Doe Requirements The amount orin time and interest Use the amortization table for McNeil Corporation's bonds to answer the following questions 1. How much cash did McNeil Corporation borrow on January 1, 2019? How much cash will McNeil Corporation pay back at maturity? 2. How much cash interest will McNeil Corporation pay each six months? 3. How much interest expense will McNeil Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? Print Done