Waldron Corporation issued $ 750 comma 000 of 16%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 14%, and the bonds pay interest semiannually (on June 30 and December 31). Waldron Corporation's year-end is June 30. Waldron prepared an effective-interest amortization table for the bonds through the first three interest payments as follows: Semiannual Interest Date Interest Payment Interest Expense Premium Amortization Premium Account Balance Bond Carrying Amount Jan 1, 2019 79,455 829,455 Jun 30, 2019 60,000 58,062 1,938 77,517 827,517 Dec 31, 2019 60,000 57,926 2,074 75,443 825,443 Jun 30, 2020 60,000 57,781 2,219 73,224 823,224 Use the amortization table for Waldron Corporation's bonds to answer the following questions: 1. How much cash did Waldron Corporation borrow on January 1, 2019? How much cash will Waldron Corporation pay back at maturity? 2. How much cash interest will Waldron Corporation pay each six months? 3. How much interest expense will Waldron Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why?

Waldron Corporation issued $750,000 of 16%, 10-year bonds payable on January 1, 2019. The market interest rate at the date of issuance was 14%, and the bonds pay interest semiannually (on June 30 and December 31). Waldron Corporation's year-end is June 30. Waldron 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 X Requirements 1. How much cash did Waldron Corporation borrow on January 1, 2019? How much cash will Waldron Corporation pay back at maturity? at maturity Waldron borrowed $ on January 1, 2019. The company will pay back$ Use the amortization table for Waldron Corporation's bonds to answer the following questions: 1. How much cash did Waldron Corporation borrow on January 1, 2019? How much cash will 2. How much cash interest will Waldron Corporation pay each six months? Waldron Corporation pay back at maturity? Waldron will pay $ 2. How much cash interest will Waldron Corporation pay each six months? cash interest each six months. 3. How much interest expense will Waldron Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? 3. How much interest expense will Waldron Corporation report on June 30, 2019, and on December 31, 2019? Does the amount of interest expense increase or decrease each period? Why? Waldron will report $ of interest expense for the six months ending June 30, 2019. Waldron will report $ of interest expense for the six months ending December 31, 2019. Done Print Does the amount of interest expense increase or decrease each period? Why? each period because the carrying value of the bonds value of the bonds The amount of interest expense over time and interest expense is based on the decreases increases remains the same -X Premium Bond Carrying Semiannual Interest Interest Premium Account Interest Date Payment Expense Amortization Balance Amount 79,455 829,455 Jan 1, 2019 827,517 60,000 58,062 1,938 77,517 Jun 30, 2019 57,926 60,000 2,074 75,443 825,443 Dec 31, 2019 2,219 60,000 57,781 73,224 823,224 Jun 30, 2020 Done Print