Better Boat 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. iClick the icon to viewing the financing information.) Read the requirements. Will the bonds issue at face value. premium. Requirement ra discount? Better Boat'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 expaauons, (Round your answers to the nearest whole dollar. Record debits first. tExclude explanations from any jounal entries. Check your spelling carefully and do not abbreviate.) a. Cash received from the bond issue. Debit Date Accounts Credit 2020 cash 698,440 Jan. 2 More Info Better Boat Company plans to raise the capital by issuing $700,000 of 8%, six-year bonds on January 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $698,440 when the bonds are issued. The company also issues a mortgage payable for $800,000 on January 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $40,000 plus interest for twenty years, payable on December 31. The mortgage interest rate is 8%. Print Done b. Cash received from the mortgage payable. Debit Credit Date Accounts 2020 cash 800,000 Jan. 2 mortgage payable 800.000 c. Semiannual bond interest payments for 2020. Amortize the premium r discount using the straight-line amortization method. Start by recording the semiannual bond interest payment on June 30, 2020. Date Accounts Debit Credit 2020 interest expense Jun. 30 discount on bonds payable 130 cash