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 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 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 December 31, 2017 General Journal Prepare the journal entries to record the following: Additional Instructions 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 PAGE 2016 PAGE 2017 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT Prepare the journal entries to record the following: Additional Instructions January 1, 2016 December 31, 2016 December 31, 2016 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 December 31, 2017 PAGE 2016 PAGE 2017 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT