On January 1, 2016, Knorr Corporation issued S 1.400.000 of 0% 5-year bonds dated January 1, 2016. The bonds pay terest annually on Decem ber 31. The bonds were asued to yeld 7%. Bond asue costs associated with the bonds totaled S27 560 53. Required Prepare the journal entries to record the following January 1, 2010 December 31.2018 First interest payment using the effective interest methoo December 31. 2018 Amortization of bond issue costs using the straight-line method Decamber 31, 2017Second interest payment using the offactive interest method December 31, 2017 Amortization of bond issue costs using the straight-line method sold the bonds at an effective rate of 7% Chart of Accounts CHART OF ACCOUNTS Knorr Corporation General Ledger ASSETS REVENUE 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 195 Deferred Bond lssue Costs 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 11 Insurance Expense 512 Usities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 550 Miscel aneous Expenses LIABILITIES 211 Accounts Payable 231 Salaes Payable 250 Unearned Ravenue 255 Bonds Payable 250 Premium on Bonds Payable 257 Discount on Bonds Payable 281 Income Taxes Payable 10 Income laxepense EQUITY 311 Common Stoclk 331 Retained Eamings Prepare the journal entries to record the following: Additional Instructions January 1, 2016 December 31, 2018 First interest payment using the effective interest method December 31, 2018 Aotization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amtization of bond issue costs using the straight-line methood sold the bonds at an effective rate of 7% How does grading work? PAGE 2016 PAGE 2017 GENERAL JOURNAL Score: 135/193 DATE ACCOUNT T POST. REF. DEBIT CREDIT Jan. 1 Cash Discount on Bonds Payable Bonds Payable 1,400,00000 Jan. 1 Cash Dec 31Interest Expense Discount on Bonds Payable Cash Dec 31 Points:25.18/38 Prepare the journal entries to record the followingr Addlitional Instructions January 1, 2016 December 31, 2018 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 PAGE 2016PAGE 2017 GENERAL JOURNAL Score: 135/193 ACCOUNT T POST. REF.DESIT CREDIT Dec 31 Interest Expense Discount on Bonds Payable Cash Dec 31 5.00 Points25.18/36 Feedback Table 3-Present Value of 1: Pu- 5.5% 7.0% 8.0% 9.0% 14.0% 1 0.985222 0.961538 0.956938 0.952381 0.947887 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.847458 2 0.970662 0.924558 0.915730 0.907029 0.898452 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.718184 3 0.956317 0.888996 0.876297 0.863838 0.851614 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.608831 4 0.942184 0.854804 0.838581 0822702 0.807217 0.792094 0.782895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.515789 5 0.928260 0.821927 0.802451 0.783526 0.765134 0.747258 0.712986 0.680583 0.649931 0.620921 0.587427 0.519369 0.476113 0.437109 6 0.914542 0.790315 0.767896 0.746215 0.725246 0.704961 0.686342 0.630170 0.596267 0.584474 0.506831 0.455587 0.410442 0.370432 7 0.901027 0.759918 0.734828 0.710681 0.687437 0.685057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.313925 8 0887711 0.730690 0.703185 0.676839 0.651599 0.627412 0.582012 0.540269 0.501886 0.466507 0.403883 0.350559 0.305025 0.266038 S 0.874592 0.702587 0.672904 0.644609 0.617829 0.591898 0.543934 0.500249 0.460428 0.424098 0.360810 0.307508 0.262963 0.225456 10 0.861667 0.675584 0.643928 0.613913 0.585431 0.558395 0.508349 0.463193 0422411 0.385543 0.321973 0.269744 0.226884 0.191064 11 0.848933 0.649581 0.616199 0.584679 0.554911 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.161919 12 0.836387 0.624597 0.589664 0.556837 0.525982 0.496969 0.4440120397114 0.355535 0.318831 0.256675 0.207559 0.168463 0.137220 13 0.824027 0.600574 0.584272 0.530321 0.498581 0.468839 0.414964 0.367698 0.326179 0.289684 0.229174 0.182069 0.145227 0.116288 14 0.811849 0.577475 0.539973 0.505068 0.472569 0.442301 0.3878170.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0098549 15 0.799852 0.555265 0.516720 0.4810170.447933 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.083516 16 0.788031 0.533908 0.494469 0458112 0.424581 0.393846 0.338735 0.291890 0.251870 0.217829 0.163122 0.122892 0.093041 0.070776 17 0.776385 0.513373 0.473176 0.436297 0.402447 0.371384 0.316574 0.270269 0.231073 0.197845 0.145844 0.107800 0.080207 0.059980 18 0.764912 0.493628 0.452800 0.415521 0.381466 0.350344 0.295884 0.250249 0211994 0.179859 0.130040 0.094581 0.069144 0050830 19 0.753607 0.474642 0.433302 0.395734 0.361579 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.043077 20 0.742470 0.456387 0.414643 0.376889 0.342729 0311805 0.258419 0.214548 0.178431 0.148844 0.103667 0.072762 0.051385 0036506 21 0.731498 0.438834 0.396787 0.358942 0.324862 0.294155 0.241513 0.198656 0.163698 0.135131 0.092580 0.063828 0.044298 0.030937 22 0.720688 0.421965 0.379701 0.341850 0.307926 0.277505 0.225713 0.183941 0.150182 0.122846 0.082643 0.055988 0.038188 0026218 23 0.710037 0.405728 0.383350 0.325571 0.291873 0.261797 0.210947 0.170315 0.137781 0.111678 0073788 0.049112 0.032920 0.022218 24 0.699544 0.390121 0.347703 0.310068 0.276657 0.246979 0.1971470.157699 0.126405 0.101526 0.065882 0.043081 0.028380 0018829 25 0.689206 0375117 0.332731 0.295303 0.262234 0.232999 0.184249 0.146018 0.115968 0.092296 0.058823 0.037790 0.024465 0.015957 26 0.679021 0.360889 0.318402 0.281241 0.248563 0.219810 0.1721950135202 0.106393 0.083905 0.052521 0.033149 0.021091 0.013523 27 0.668986 0.346817 0.304691 0.267848 0.235605 0.207388 0.160930 0125187 0.097608 0.076278 0.046894 0.029078 0.018182 0011460 28 0.659099 0.333477 0.291571 0.255094 0.223322 0.195630 0.150402 0.115914 0.089548 0.069343 0.041869 0.025507 0.015674 0.009712 29 0.649359 0.320651 0.279015 0.242946 0211679 0.184557 0.1405830107328 0.082155 0.083039 0.037383 0.022375 0.013512 0008230 30 0.639762 0.308319 0.267000 0.231377 0.200944 0.174110 0.131367 0.099377 0.075371 0.057309 0.033378 0.019627 0.011648 0006975 Table 4- Present Value of an Ordlnary Annulty of 1: pon- 1.5% 70% 14.0% 16.0% 18.0% 10.985222 0.961538 0.956938 0952381 0.947867 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0877193 0.882069 0.847458 2 1.955883 1886095 1872668 1859410 1846320 1833393 1808018 1.783265 1.7591111.735537 1.690051 1.646681 1.605232 1.585842 3 2912200 2775091 2748984 2723248 2697933 2673012 2624316 2.577097 2.531295 2.486852 2.401831 2.321632 2.245890 2.174273 4 3.854385 3629895 3587526 3.545951 3.505150 3465106 3.387211 3312127 3.239720 3.169865 3.037349 2.913712 2.798181 2.690062 5 4.782645 4.451822 4.389977 4.329477 4.270284 4.212364 4.100197 3.992710 3.889651 3.790787 3.604776 3.433081 3.274294 3.127171 6 5.6971875242137 5.157872 5.075692 4995530 4917324 4768540 4622880 4485919 4.355261 4.111407 3888668 3.684736 3.497603 6.5982146.002055 5892701 5786373 5682967 5.582381 5.389289 5.206370 5.032953 4.888419 4.563757 4.288305 4.038585 3811528 8 7.485925 6732745 6.595886 6.463213 6.334568 6.209794 5.971299 5746639 5.534819 5.334926 4.967640 4.638884 4.343591 4.077586 S 8.3605177435332 7.268790 7107822 6952195 6801692 6.515232 6.246888 5.9952475.759024 5.328250 4.946372 4.606544 4.303022 10 9.222185 8.110898 7.912718 7.721735 7.537626 7.360087 7.023582 6.710081 6.417658 6.144567 5.650223 5216116 4.833227 4.494086 11 10.071118 8.760477 8.528917 8.308414 8.092538 7.888875 7.498674 7.138984 8.805191 8.495061 5.937899 5.452733 5.028844 4.658005 12 10.907505 9.385074 9.118581 8.863252 8.618518 8.383844 7.942686 7.536078 7.160725 6.813692 6.194374 5.660292 5.197107 4.793225 13 11.731532 9.985648 9.682852 9.393573 9.117079 8.852683 8.357651 7.903778 7.486904 7.103356 6.423548 5.842382 5.342334 4.909513 14 12.543382 10.563123 10.222825 9.898841 9.589648 9.294984 8.745468 8.244237 7.788150 7.386887 8.628168 .002072 5.467529 5.008062 15 13.343233 11.118387 10.739546 10.379658 10.037581 9.712249 9.107914 8.559479 8.060688 7.6060B0 6.810884 6.142168 5.575456 5.091578 14.131284 11.652296 11234015 10.837770 10.462162 10.105895 9.446849 8.851389 8.312558 7.823709 6.973986 6.265060 5688497 5.162354 7 14.907849 12.165889 11.707191 11.274068 10.884609 10.477280 9.763223 9.121638 8.543831 8.021553 7.119630 8.372859 5.748704 5.222334 18 15.872581 12.659297 12.159992 11.689687 11246074 10.827603 10.059087 9.371887 8.755625 8.201712 7.249670 6.467420 5817848 5.273184 19 16.428188 13.133939 2.593294 12.085321 11.807854 11.158118 10.335595 9.803599 8.950115 8.384920 7.385777 8.550389 5.877455 5.316241 20 17.168639 13.590326 13.007936 12.462210 11.950382 11.469921 10.594014 9.818147 9.128548 8.513584 7.469444 6.623131 5.928841 5.352746 21 17.900137 14.029160 13.404724 12.821153 12.275244 11.764077 10.835527 10.016803 9.292244 8.648694 7.562006 6.686957 5.973139 5.383683 22 18.620824 14.451115 13.784425 13.163003 12.583170 2.041582 11.061240 10.201044 9.442425 8.771540 7.644646 6.742944 6.011326 5.409901 23 19.330881 14.858842 14.147775 13.488574 12.875042 12.303379 11.27218710.371059 9.580207 8.883218 7.718434 6.792058 6.044247 5.432120 24 20.030405 15.246983 14.495478 13.798642 13.151699 12.550358 11.46933410.528758 9.706612 .984744 7.784316 6.835137 6.072627 5.450949 25 20.719811 15.622080 14.828209 14.093945 13.413933 12.783358 11.853583 10.674778 9.822580 9.077040 7.843139 .872927 8.097092 5.488906 26 21.398632 15.982769 15.14661114.375185 13.662495 13.003166 11.825779 10.809978 9.928972 9.160945 7.895660 6.906077 6.118183 5.480429 27 22.067617 16.329586 15.451303 14.643034 13.898100 13.210534 11.986709 10.935165 10.026580 9.237223 7.942554 6.935155 .136364 5.491889 29 23.378078 16.983715 16.021889 15.141074 14.333101 13.590721 12.277874 11.158406 10.198283 9.389806 .021806 6.983037 6.185550 5.509831 30 24.015838 17.292033 16.288889 15.372451 14.533745 13.764831 12.40904111.257783 10.273854 9.426914 8055184 7.002884 6.177198 5.516806