Schmidt Corporation issued $500,000 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). Schmidt Corporation's year-end is June 30. Schmidt 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 Schmidt Corporation borrow on January 1, 2019? How much cash will Schmidt Corporation pay back at maturity? Schmidt borrowed $ on January 1, 2019. The company will pay back at maturity 2. How much cash interest Will Schmidt Corporation pay each six months? Schmidt will pay $ cash interest each six months 3. How much interest expense will Schmidt Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? Schmidt will report $ Schmidt will report $ 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? each period because the carrying value of the bonds over time and interest expense is based The amount of interest expense on the value of the bonds