On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were ed year% end issue costs associated with the bonds totaled $22,107.40 Required: Prepare the journal entries to record the follding 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 Chart of Accounts General Journal 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? Shaded cells have feedback L PAGE 2016 PADE 2017 ber 31 The bonds w art of Accounts General Journal GENERAL JOURNAL Shaded cells have feedback. PAGE 2016 PAGE 2017 Score: 175/193 DATE ACCOUNT TITLE POST REF DEBIT CREDIT 1 Jan. 01 Cash 2 1,342,600.00 3 Discount on Bonds Payable Bonds Payable 57,400.00 1,400,000.00 v 4 Jan. 1 Deferred Bond Issue Costs 22,107.40 5 Cash 22,107.40 6 Dec. 31 Interest Expense 93,982.00 93,982.00 7 Discount on Bonds Payable Gch 84.000.00 General Journal Dec. 31 Interest Expense Shaded cells have feedback. 95,982.00 95,982.00 7 8 Discount on Bonds Payable Cash ber 31. The bonds 84,000.00 Dec. 31 Interest Expense 4,421.48 10 Deferred Bond Issue Costs 442,148.00 Points 32.64/36 in Chart of Accounts General Journal Or iss GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Interest Expense 2 Discount on Bonds Payable 3 Cash 4 Dec. 31 Interest Expense 5 Deferred Bond Issue Costs Shaded cells have feedback PAGE 2016 PAGE 2017 Score: 175/193 ber 31. T POST REF DEBT CREDIT 94,680.74 10,680.74 $4,000.00 4,421.48 4,421.48 Points: 32.64/36