Schmidt Corporation issued $$750,000$ of $12\%,10-$year bonds payable on January $1,2022.$ The market interest rate at the date of issuance was $10\%,$ 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.

How much cash did Schmidt Corporation borrow on January $1,2022?$ How much cash will Schmidt Corporation pay back at maturity?

On January $1,2022,$ Schmidt borrowed

At maturity Schmidt will pay back

Requirements

Use the amortization table for Schmidt Corporation's bonds to answer the following questions:

How much cash did Schmidt Corporation borrow on January $1,2022?$ How much cash will Schmidt Corporation pay back at maturity?

How much cash interest will Schmidt Corporation pay each six months?

How much interest expense will Schmidt Corporation report on June $30,2022,$ and on

Reference

December $31,2022?$ Does the amount of interest expense increase or decrease

$\backslash$table$[[\backslash$table$[[$Semiannual$],[$Interest Date$]],\backslash$table$[[$Interest$],[$Payment$]],\backslash$table$[[$Interest$],[$Expense$]],\backslash$table$[[$Premium$],[$Amortization$]],\backslash$table$[[$Premium$],[$Account$],[$Balance$]],\backslash$table$[[$Bond Carrying$],[$Amount$]]],[$Jan $1,2022,,,,93,467,843,467],[$Jun $30,2022,45,000,42,173,2,827,90,640,840,640],[$Dec $31,2022,45,000,42,032,2,968,87,672,837,672],[$Jun $30,2023,45,000,41,884,3,116,84,556,834,556]]$

each period? Why?