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On January 1, 2016, Knorr Corporation issued $900,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31 The

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On January 1, 2016, Knorr Corporation issued $900,000 of 6%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31 The bonds were issued to yield 796 Bond issue costs associated with the bonds totaled $10,687.46 Required: l. 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

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