On 7/1/18, Cardinals Co issued 3,800 of its $1,000 face value, 9%, 8-year bonds at {104} plus accrued interest. The bonds mature on 6/1/26, and pay interest each 6/1 and 12/1. The straight-line method is used to amortize any discount or premium.

** REQUIRED:

1) Determine the following items:

a) interest expense reported FYE 12/31/18. 161400 b) balance of the premium account at 12/31/18. 142400 c) carry value of the bonds at 12/31/19. 3923200

Here are the correct answers. Can you please explain how they were computed.