Presented below is the partial bond discount amortization schedule for Cardosa Corp. Cardosa uses the effective-interest method of amortization.

Interest Semiannual Interest to Expense to Discount Unamortized Bond Carrying Interest Periods Be Paid Be Recorded Amortization Discount Value Issue date $71,062 $928,938 1 $30,000 $32,513 $2,513 68,549 931,451 2 30,000 32,601 2,601 65,948 934,052

(a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1.

(b) A> Explain why interest expense is greater than interest paid.

(c) Explain why interest expense will increase each period.