On January 1, 2019, Knorr Corporation issued $1,400,000 of 7%, 5-year bonds dated January 1, 2019. 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. Required: Prepare the journal entries to record the following: January 1, 2019 Sold the bonds at an effective rate of 8% December 31, 2019 First interest payment using the effective interest method December 31, 2019 Amortization of bond issue costs using the straight-line method December 31, 2020 Second interest payment using the effective interest method Amortization of bond issue costs using the straight-line method December 31, 2020