Chapter 9, Problem 9.7S

1.

To determine

The amount that P Corporation borrowed on March 31, 2019.

To determine

The amount that P Corporation will pay back at maturity on March 31, 2029.

2.

To determine

The amount of cash interest that P Corporation will pay each six months.

3.

To determine

The amount of interest expense that P Corporation will report on September 30, 2019 and on March 31, 2020.

To determine

To state: The reason for increasing the amount of interest expense each period.