Reference Premium Semiannual Interest Interest Premium Account Bond Carrying Interest Date Payment Expense Amortization Balance Amount Jan 1, 2022 106,284 756,284 Jun 30, 2022 19,500 15,126 4,374 101,910 751,910 Dec 31, 2022 19,500 15,038 4,462 97,448 747,448 Jun 30, 2023 19,500 14,949 4,551 92,897 742,897 Print Done Clarke Corporation issued $650,000 of 6%, 10-year bonds payable on January 1, 2022. The market interest rate at the date of issuance was 4%, and the bonds pay interest semiannually (on June 30 and December 31). Clarke Corporation's year-end is June 30. Clarke 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. Requirements Use the amortization table for Clarke Corporation's bonds to answer the following questions: 1. How much cash did Clarke Corporation borrow on January 1, 2022? How much cash will Clarke Corporation pay back at maturity? 2. How much cash interest will Clarke Corporation pay each six months? 3. How much interest expense will Clarke Corporation report on June 30, 2022, and on December 31, 2022? Does the amount of interest expense increase or decrease each period? Why? Print Done back Clear all Check