Instructions On Janu 1, 2016, Knorr Corporation issued $1,400,000 of 0%, 5-year bonds dated January 1, 2016. The bonds pay interest annusly on December 31. The bonds were issued to yield 7% Bond issue costs associated with the bonds totaled $22,107.40 Required: Prepare the journal entries to record the following January 1, 2016 December 31, 2016 December 31, 2016 December 31, 2017 December 31, 2017 Sold the bonds at an effective rate of 7% 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 Prepare the journal entries to record the following: Additional Instructions January 1, 2016 December 31, 2016 December 31, 2016 December 31, 2017 December 31, 2017 Sold the bonds at an effective rate of 7% 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 How does grading work? PAGE 2016 PAGE 2017 e following: Additional Instructions bonds Refer to the PV tables. est p Round answers to 2 decimal places. tion o nteres tion o Record your entries on the page that matches the year. For ex. Jan. 1 2016 should be recorded on page 2016. PAGE 2016 PAGE 2017 Re P - GENERAL JOURNAL PAGE 2016 PAGE 2017 Score: 181/193 DATE 1 ACCOUNT TITLE POST REF DEBT CREDIT 2 3 4 Jan. 1 Discount on Bonds Payable Cash Bonds Payable Jan. 1 Deferred Bond Issue Costs 863,098.04 1,342,597.00 1,400,000.00 22,107.40 5 Cash 22,107.40 Dec. 31 Interest Expense 93,982.00 93,982.00 Discount on Bonds Payable 9,982.00 D 9 10 16 94.982.00 93,982.00 9,982.00 84,000.00 4,421.48 Deferred Bond Issue Costs 4,421.48 Dec. 31 Interest Expense Discount on Bonds Payable Cash Dec. 31 Interest Expense General Journal DATE ACCOUNT TITLE 1 Dec. 31 Interest Expense Discount on Bonds Payable 3 Cash Dec. 31 Interest Expense Deferred Bond Issue Costs GENERAL JOURNAL Staced cells have feedback PAGE 2016 PAGE 2017 Score: 181/193 POST. REF DEBIT CREDIT 94,680.74 10,680.74 84,000.00 4,421.48 4,421.48 Points: 33.76/36