Nature Gnome Company plans to raise the capital by issuing $1,400,000 of 10%, five-year bonds on January 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The company receives $1,399,000 when the bonds are issued. The company also issues a mortgage payable for $500,000 on January 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $25,000 plus interest for twenty years, payable on December 31. The mortgage interest rate is 10%. 1. 2. 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 2020. Amortize the premium or discount using the straight-line amortization method. d. Payment on the mortgage payable for 2020. Calculate the total interest expense incurred in 2020. 3. 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 A another building on their land to offer more services for local customers. (Click the icon to viewing the financing information.) Read the requirement Requirement 1. Will the bonds issue at face value, a premium, or a discount? Nature Gnome's bonds will be issued at Requirement 2. Record the following transactions. Include dates and round to the nearest dollar. Omit explanations. (Round your answers to the nearest whole dollar. Recom entries.) a. Cash received from the bond issue, Accounts Credit because Date Debit 2020 Jan 2 b. Cash received from the mortgage payable. Date Accounts Debit Credit 2020 Jan. 2 c. Semiannual bond interest payments for 2020. Amortize the premium or discount using the straight-line amortization method. Start by recording the semiannual bond interest payment on June 30, 2020. Date Accounts Debit Credit 2020 Jun. 30 Now record the semiannual bond interest payment on December 31, 2020. Date Accounts Debit Credit 2020 Dec. 31 d. Payment on the mortgage payable for 2020. Date Accounts Debit Credit 2020 Dec. 31 Requirement 3. Calculate the total interest expense incurred in 2020. Total 2020 Interest Expense Bonds Mortgage Total