On January 1, 2019, Knorr Corporation issued $900,000 of 6%, 5-year bonds dated January 1, 2019. The bonds pay interest annually on December 31. The bonds were issued to yield 7%. Bond issue costs associated with the bonds totaled $10,687.46. Required: Prepare the journal entries to record the following: January 1, 2019 Sold the bonds at an effective rate of 7% 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 December 31, 2020 Amortization of bond issue costs using the straight-line method