6. On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $18,848.31. Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% December 31, 2016 December 31, 2016 December 31, 2017 December 31, 2017 First interest payment using the effective interest method Amortization of bond issue costs using the straight-line method Second interest payment using the effective interest method Amortization of bond issue costs using the straight-line method GENERAL JOURNAL Page 2016 DATE ACCOUNT TITLE POST. REF. Jan. 1 Cash DEBIT 767,198.26 CREDIT 1 Discount on 32,801.74 2 Bonds Paya 800,000 3 Jan. 1 Deferred Bo 18,848.31 Cash 18,848.31 5 Dec. 31 Interest Exp 53.703.88 6 Discount on 5,703.88 7 Cash 48,000 8 Dec. 31 Interest Exp 3,769.66 9 Deferred Bo 3,769.66 10 GENERAL JOURNAL Page 2017 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Dec. 31 Interest Exp 54,103.15 1 Discount on 6.103.15 2 3 Cash 48,000