Instructions Chart of Accounts General Journal Present Value Tables = Instructions On January 1, 2019, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2019. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $22.107.40. Required: Prepare the joumal entries to record the following: January 1, 2019 Sold the bonds at an effective rate of 7% December 31, 2019 December 31, 2019 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 December 31, 2020 December 31, 2020 General Journal Shaded cells have feedback. Prepare the journal entries lo record the following: January 1, 2019 Sold the bonds at an effective rate of 7% General Journal Instructions How does grading work? PAGE 2019 PAGE 2020 GENERAL JOURNAL Score: 173/193 DATE ACCOUNT TITLE POST. REF DEBIT CREDIT 1 Jan. 1' Cash 1,342,596.94 2 Discount on Bonds Payable 22,107.40 3 Bonds Payable 1,400,000.00 Jan 1 Deferred Debt Issuance Costs 22, 107.40 Cash 22,107.40 Dec 31 Interest Expense 84,000,00 7 Cash 84,000.00 3 Discount on Bonds Payable 998,180.40 Dec 31 Interest Expense 98,000.00 Deferred Debt Issuance Costs 9,00 General Journal Instructions How does grading work? PAGE 2019 PAGE 2020 GENERAL JOURNAL Score: 173/193 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Dec. 31 Interest Expense 1,399,999.40 2 Discount on Bonds Payable 1,399,999.40 3 Cash 84,000.00 4 Dec. 31 Interest Expense 1,399,999.40 5 Deferred Debt Issuance Costs 4,421.00 Points: 32.27 / 36