Answer the following independent questions. Where applicable, use the present value tables in your textbook. 1) On January 1, 2026, Port Co. sold 12% bonds with a face value of $500,000. The bonds mature in 5 years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $538,500 to yield 10%. Using the effective interest method of amortization, determine the following: a) The interest expense for 2026. b) The journal entry recorded on December 31, 2026. c) The carrying value of the bonds on January 1, 2027. 2) On January 1, 2025, LL Co. issued $700,000 of 12% bonds dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 3 years. The market yield for bonds of similar risk and maturity is 14%. Determine the selling price of the bonds, and record the journal entry for the sale.