*E10-16 Lorance SpA issued 400,000,7%, 20-year bonds on January 1, 2017, for 360,727. This price resulted in an effective interest rate of 8% on the bonds. Interest is payable annually on January 1. Lorance uses the effective interest method to amortize bond pre- mium or discount. Instructions Prepare the journal entries to record the following. (Round to the nearest euro.) (a) The issuance of the bonds. (b) The accrual of interest and the discount amortization on December 31, 2017. (c) The payment of interest on January 1, 2018