On May 1, 2018, Nailtique Nail Salons issued $700,000 of 20 year, 9 percent bonds payable. The bands were sold for $679,000. The bonds pay interest each October 31 and April 30, and any discount or premium is amortized using straight-line amortization. Read the requirements Requirement 1. Fill in the blanks to complete each statement a. Nailtique Nail Salons' bonds are priced at (express the price as a percentage) 97 %. b. When Nailtique Nail Salons issued its bonds, the market interest rate was higher than 9 percent. C. The amount of bond discount or premium is $ 21000 Requirement 2. Record each transaction. (Do not round any intermediary computations, but then round all amounts you enter into the journal entry tables to the nearest whole dolar. Record debits first, then credits. Exclude explanations from any joumal entries.) a. Issuance of the bonds payable on May 1, 2018 Date Debit Credit May 1 Journal Entry Accounts Cash Discount on bonds payable Bonds payable 679000 2 100011 N 7 00000 b. Payment of interest (and amortization of discount or premium, if any) on October 31, 2018 Journal Entry Date Accounts Debit Credit Oct 31 interest expense Discount on bonds payable Cash C. Accrual of interest (and amortization of discount or premium, if any) on December 31, 2018 Journal Entry Accounts Date Debit Dec 31 interest expense Discount on bonds payable Interest payable Requirement 3. At what amount wil Nailtique Nail Salons report the bonds on its balance sheet at December 31, 2018? C. On its balance sheet at December 31, 2018, the company will report the bonds at the carrying amount