Requirement 1. Will the bonds issue at face value, a premium, or a discount? Nature Gnome's bonds will be issued at a discount because the cash proceeds are less than the face value of the bonds. Requirement 2. Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. (Round your answers to the nearest whole dollar. Record debits rst, then credits. Exclude explanations from any journal entries.) a. Cash received from the bond issue. Date Accounts | Credit 2026 Jan. 2 CaSh 797,600 Discount on Bonds Payable 2,400 Bonds Payable 800,000 b. Cash received from the mortgage payable. I Credit Date Accounts Cash 600,000 Jan. 2 Mortgages Payable 600,000 c. Semiannual bond interest payments for 2026. Amortize the premium or discount using the straight-line amortization method. Start by recording the semiannual bond interest payment on June 30, 2026. | Credit Date Accounts 2026 Jun_ 30 Interest Expense ' Discount on Bonds Payable 120 Cash 28,000 Now record the semiannual bond interest payment on December 31, 2026. | Credit Accounts Dec. 31 Interest Expense ' 1 20 ' 28,000 Discount on Bonds Payable Cash d. Payment on the mortgage payable for 2026. Date Accounts Debit I Credit 2026 Dec. 31 Mortgages Payable 30,000 Interest Expense 42,000 Cash 72,000' Requirement 3. Calculate the total interest expense incurred in 2026. Total 2026 Interest Expense Bonds $ 56,240' V Mortgage $ 98,240' Total Nature Gnome Company is considering raising additional capital for further expansion. The company wants to finance a new business venture into guided trips down the Amazon River in South America. Additionally, the company wants to add another building on their land to offer more services for local customers. 0 (Click the icon to viewing the financing information.) Read the @uirements. Nature Gnome Company plans to raise the capital by issuing $300,000 of 9%, seven-year bonds on January 2, 2026. The bonds pay interest semiannually on June 30 and December 31. The company receives $298,180 when the bonds are issued. The company also issues a mortgage payable for $250,000 on January 2, 2026. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $25,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 10%. Will the bonds issue at face value, a premium, or a discount? Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. a. Cash received from the bond issue. b. Cash received from the mortgage payable. c. Semiannual bond interest payments for 2026. Amortize the premium or discount using the straight-line amortization method. d. Payment on the mortgage payable for 2026. Calculate the total interest expense incurred in 2026