On January 1, 2016, Knorr Corporation issued $1,400,000 of 7%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 8%. Bond issue costs associated with the bonds totaled $21,540.76.

journal entries to record the following:January 1, 2016Sold the bonds at an effective rate of 8%December 31, 2016First interest payment using the effective interest methodDecember 31, 2016Amortization of bond issue costs using the straight-line methodDecember 31, 2017Second interest payment using the effective interest methodDecember 31, 2017Amortization of bond issue costs using the straight-line method

Table 3 - Present Value of 1:p

n,i

=1

(1+i)

n

pn,i=1(1+i)n

n1.5%4.0%4.5%5.0%5.5%6.0%7.0%8.0%9.0%10.0%12.0%14.0%16.0%18.0%10.9852220.9615380.9569380.9523810.9478670.9433960.9345790.9259260.9174310.9090910.8928570.8771930.8620690.84745820.9706620.9245560.9157300.9070290.8984520.8899960.8734390.8573390.8416800.8264460.7971940.7694680.7431630.71818430.9563170.8889960.8762970.8638380.8516140.8396190.8162980.7938320.7721830.7513150.7117800.6749720.6406580.60863140.9421840.8548040.8385610.8227020.8072170.7920940.7628950.7350300.7084250.6830130.6355180.5920800.5522910.51578950.9282600.8219270.8024510.7835260.7651340.7472580.7129860.6805830.6499310.6209210.5674270.5193690.4761130.43710960.9145420.7903150.7678960.7462150.7252460.7049610.6663420.6301700.5962670.5644740.5066310.4555870.4104420.37043270.9010270.7599180.7348280.7106810.6874370.6650570.6227500.5834900.5470340.5131580.4523490.3996370.3538300.31392580.8877110.7306900.7031850.6768390.6515990.6274120.5820120.5402690.5018660.4665070.4038830.3505590.3050250.26603890.8745920.7025870.6729040.6446090.6176290.5918980.5439340.5002490.4604280.4240980.3606100.3075080.2629530.225456100.8616670.6755640.6439280.6139130.5854310.5583950.5083490.4631930.4224110.3855430.3219730.2697440.2266840.191064110.8489330.6495810.6161990.5846790.5549110.5267880.4750930.4288830.3875330.3504940.2874760.2366170.1954170.161919120.8363870.6245970.5896640.5568370.5259820.4969690.4440120.3971140.3555350.3186310.2566750.2075590.1684630.137220130.8240270.6005740.5642720.5303210.4985610.4688390.4149640.3676980.3261790.2896640.2291740.1820690.1452270.116288140.8118490.5774750.5399730.5050680.4725690.4423010.3878170.3404610.2992460.2633310.2046200.1597100.1251950.098549150.7998520.5552650.5167200.4810170.4479330.4172650.3624460.3152420.2745380.2393920.1826960.1400960.1079270.083516160.7880310.5339080.4944690.4581120.4245810.3936460.3387350.2918900.2518700.2176290.1631220.1228920.0930410.070776170.7763850.5133730.4731760.4362970.4024470.3713640.3165740.2702690.2310730.1978450.1456440.1078000.0802070.059980180.7649120.4936280.4528000.4155210.3814660.3503440.2958640.2502490.2119940.1798590.1300400.0945610.0691440.050830190.7536070.4746420.4333020.3957340.3615790.3305130.2765080.2317120.1944900.1635080.1161070.0829480.0596070.043077200.7424700.4563870.4146430.3768890.3427290.3118050.2584190.2145480.1784310.1486440.1036670.0727620.0513850.036506210.7314980.4388340.3967870.3589420.3248620.2941550.2415130.1986560.1636980.1351310.0925600.0638260.0442980.030937220.7206880.4219550.3797010.3418500.3079260.2775050.2257130.1839410.1501820.1228460.0826430.0559880.0381880.026218230.7100370.4057260.3633500.3255710.2918730.2617970.2109470.1703150.1377810.1116780.0737880.0491120.0329200.022218240.6995440.3901210.3477030.3100680.2766570.2469790.1971470.1576990.1264050.1015260.0658820.0430810.0283800.018829250.6892060.3751170.3327310.2953030.2622340.2329990.1842490.1460180.1159680.0922960.0588230.0377900.0244650.015957260.6790210.3606890.3184020.2812410.2485630.2198100.1721950.1352020.1063930.0839050.0525210.0331490.0210910.013523270.6689860.3468170.3046910.2678480.2356050.2073680.1609300.1251870.0976080.0762780.0468940.0290780.0181820.011460280.6590990.3334770.2915710.2550940.2233220.1956300.1504020.1159140.0895480.0693430.0418690.0255070.0156740.009712290.6493590.3206510.2790150.2429460.2116790.1845570.1405630.1073280.0821550.0630390.0373830.0223750.0135120.008230300.6397620.3083190.2670000.2313770.2009440.1741100.1313670.0993770.0753710.0573090.0333780.0196270.0116480.006975Table 4 - Present Value of an Ordinary Annuity of 1:p

O,n,i

=11

(1+i)

n

i

pO,n,i=11(1+i)ni

n1.5%4.0%4.5%5.0%5.5%6.0%7.0%8.0%9.0%10.0%12.0%14.0%16.0%18.0%10.9852220.9615380.9569380.9523810.9478670.9433960.9345790.9259260.9174310.9090910.8928570.8771930.8620690.84745821.9558831.8860951.8726681.8594101.8463201.8333931.8080181.7832651.7591111.7355371.6900511.6466611.6052321.56564232.9122002.7750912.7489642.7232482.6979332.6730122.6243162.5770972.5312952.4868522.4018312.3216322.2458902.17427343.8543853.6298953.5875263.5459513.5051503.4651063.3872113.3121273.2397203.1698653.0373492.9137122.7981812.69006254.7826454.4518224.3899774.3294774.2702844.2123644.1001973.9927103.8896513.7907873.6047763.4330813.2742943.12717165.6971875.2421375.1578725.0756924.9955304.9173244.7665404.6228804.4859194.3552614.1114073.8886683.6847363.49760376.5982146.0020555.8927015.7863735.6829675.5823815.3892895.2063705.0329534.8684194.5637574.2883054.0385653.81152887.4859256.7327456.5958866.4632136.3345666.2097945.9712995.7466395.5348195.3349264.9676404.6388644.3435914.07756698.3605177.4353327.2687907.1078226.9521956.8016926.5152326.2468885.9952475.7590245.3282504.9463724.6065444.303022109.2221858.1108967.9127187.7217357.5376267.3600877.0235826.7100816.4176586.1445675.6502235.2161164.8332274.4940861110.0711188.7604778.5289178.3064148.0925367.8868757.4986747.1389646.8051916.4950615.9376995.4527335.0286444.6560051210.9075059.3850749.1185818.8632528.6185188.3838447.9426867.5360787.1607256.8136926.1943745.6602925.1971074.7932251311.7315329.9856489.6828529.3935739.1170798.8526838.3576517.9037767.4869047.1033566.4235485.8423625.3423344.9095131412.54338210.56312310.2228259.8986419.5896489.2949848.7454688.2442377.7861507.3666876.6281686.0020725.4675295.0080621513.34323311.11838710.73954610.37965810.0375819.7122499.1079148.5594798.0606887.6060806.8108646.1421685.5754565.0915781614.13126411.65229611.23401510.83777010.46216210.1058959.4466498.8513698.3125587.8237096.9739866.2650605.6684975.1623541714.90764912.16566911.70719111.27406610.86460910.4772609.7632239.1216388.5436318.0215537.1196306.3728595.7487045.2223341815.67256112.65929712.15999211.68958711.24607410.82760310.0590879.3718878.7556258.2017127.2496706.4674205.8178485.2731641916.42616813.13393912.59329412.08532111.60765411.15811610.3355959.6035998.9501158.3649207.3657776.5503695.8774555.3162412017.16863913.59032613.00793612.46221011.95038211.46992110.5940149.8181479.1285468.5135647.4694446.6231315.9288415.3527462117.90013714.02916013.40472412.82115312.27524411.76407710.83552710.0168039.2922448.6486947.5620066.6869575.9731395.3836832218.62082414.45111513.78442513.16300312.58317012.04158211.06124010.2010449.4424258.7715407.6446466.7429446.0113265.4099012319.33086114.85684214.14777513.48857412.87504212.30337911.27218710.3710599.5802078.8832187.7184346.7920566.0442475.4321202420.03040515.24696314.49547813.79864213.15169912.55035811.46933410.5287589.7066128.9847447.7843166.8351376.0726275.4509492520.71961115.62208014.82820914.09394513.41393312.78335611.65358310.6747769.8225809.0770407.8431396.8729276.0970925.4669062621.39863215.98276915.14661114.37518513.66249513.00316611.82577910.8099789.9289729.1609457.8956606.9060776.1181835.4804292722.06761716.32958615.45130314.64303413.89810013.21053411.98670910.93516510.0265809.2372237.9425546.9351556.1363645.4918892822.72671716.66306315.74287414.89812714.12142213.40616412.13711111.05107810.1161289.3065677.9844236.9606626.1520385.5016012923.37607616.98371516.02188915.14107414.33310113.59072112.27767411.15840610.1982839.3696068.0218066.9830376.1655505.5098313024.01583817.29203316.28888915.37245114.53374513.76483112.40904111.25778310.2736549.4269148.0551847.0026646.1771985.516806