On December 31, 2019, Darth Corporation issued $380,000, 12% 20-year bonds, moving 5445 206 cash when the market rate of interest was 10%. The bonds pay interest semi-annually each June 30 and December 31. Darth uses the effective interest method of mortization to mmortize and premium or discount A SET-UP OF BASIC BOND INFORMATION: Face Value Statad Rate of Interest Annual State Interest Periodic State Interest Bond Price (given) Premium on Bond B. Journal Eate DR CR On the date of issue, December 31, 2019: 2 Carrying Value of Bond 25 c 25 AMORTIZATION OF BOND PREMIUM: 27 Effecthe Interest Amortization TeNe 28 Periodic 29 Stated Effective 30 Date Interest Interest Amort 31 Issue Date 32 6/30/20 12/31/20 6/30/21 35 12/31/21 36 37 D. Jounal Estry) DR CR 39 40 Os the interest payment date, June 30, 2020: 42 45 46 2 D. Journal Entro) DR CR On the Interest payment date, June 30, 2020: 12 43 44 45 46 47 48 49 So E. Answer the following questions: 51 1. What amount of interest expense will be reported by Darth on the 2020 income statement? 52 2. What amount of interest expense will be reported by Darth on the 2021 income statement? 53 3. What is the total interest expense over the life of the bond? 54 SS F. Show the balance sheet presentation of the bond liability on December 31, 2021: 56 57 58 59 60