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Recording Bond Issuance Chart of Accounts General Journal Present Value Tables Instructions On January 1, 2016, Knorr Corporation issued $900,000 of 6%, 5-year bonds dated

Recording Bond Issuance Chart of Accounts General Journal Present Value Tables Instructions 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 7%. Bond issue costs associated with the bonds totaled $10.687.46 Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% First interest payment using the effective interest method December 31, 2016 December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method neck My Work Previous recording Bond Issuance Chart of Accounts General Joumal Present Value Tables Table 3 - Present Value of 1: Pn,:1. if 1.5% 4.0% 4.5% 5.0% 0.985222 0.961538 0.9569380.952381 0.970662 0.924556 0.915730 0.907029 0.956317 0.888996 0.876297 0.863838 0.942184 0.854804 0.838561 0.822702 0.928260 0.821927 0.802451 0.783526 6 0.914542 0.790315 0.767896 0.746215 0.901027 0.759918 0.734828 0.710681 0.887711 0.730690 0.7031850.676839 5.5% 0.947867 0.898452 0.851614 0.807217 0.765134 6.0% 0.943396 0.889996 0.839619 0.792094 0.747258 0.704961 0665057 0.627412 7.0% 8.0% 0.9345790.925926 0.873439 0.857339 0.816298 0.793832 0.762895 0.735030 0.712986 0.680583 9.0% 0.917431 0.841680 0.772183 0.708425 0.649931 10.0% 0.909091 0.826446 0.751315 0.683013 0620921 0.725246 0.666342 0.630170 0.5962670.564474 0.687437 0.651599 0.622750 0.583490 0.5820120.540269 0.547034 0.501866 0.513158 0.466507 December 31, 2017 Amortization of bond issue costs using the straight line method PAGE 2016 PAGE 2017 GENERAL JOURNAL ACCOUNT TITLE POST. REF DATE DEBIT CREDIT 852.410.76 Jan. 01 10,687.46 Cash Deferred Bond Issue Costs Discount on Bonds Payable Bonds Payable 36.910.78 900,000.00 10.687.46 900,000.00 10.687.46 Interest Expense Dec 31 Dec 31 60.416.88 60,416.88 6.416.88 Discount on Bonds Payable 54.000.00 Cash 6,416.88 Dec 31 Dec. 51 2.137.49 2.137.49 2.137.49 Interest Expense Deferred Bond Issue Costs Deferred Bond Issue Costs 24157.49 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 PAGE 2016 PAGE 2017 GENERAL JOURNAL POST. REF. DEBIT CREDIT DATE Dec. 31 60,866.06 ACCOUNT TITLE Interest Expense Discount on Bonds Payable Cash 6.866.06 54.000.00 Interest Expense Deferred Bond Issue Costs 2.157.49 2.137.49 Recording Bond Issuance Chart of Accounts General Journal Present Value Tables Instructions 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 7%. Bond issue costs associated with the bonds totaled $10.687.46 Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 7% First interest payment using the effective interest method December 31, 2016 December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method neck My Work Previous recording Bond Issuance Chart of Accounts General Joumal Present Value Tables Table 3 - Present Value of 1: Pn,:1. if 1.5% 4.0% 4.5% 5.0% 0.985222 0.961538 0.9569380.952381 0.970662 0.924556 0.915730 0.907029 0.956317 0.888996 0.876297 0.863838 0.942184 0.854804 0.838561 0.822702 0.928260 0.821927 0.802451 0.783526 6 0.914542 0.790315 0.767896 0.746215 0.901027 0.759918 0.734828 0.710681 0.887711 0.730690 0.7031850.676839 5.5% 0.947867 0.898452 0.851614 0.807217 0.765134 6.0% 0.943396 0.889996 0.839619 0.792094 0.747258 0.704961 0665057 0.627412 7.0% 8.0% 0.9345790.925926 0.873439 0.857339 0.816298 0.793832 0.762895 0.735030 0.712986 0.680583 9.0% 0.917431 0.841680 0.772183 0.708425 0.649931 10.0% 0.909091 0.826446 0.751315 0.683013 0620921 0.725246 0.666342 0.630170 0.5962670.564474 0.687437 0.651599 0.622750 0.583490 0.5820120.540269 0.547034 0.501866 0.513158 0.466507 December 31, 2017 Amortization of bond issue costs using the straight line method PAGE 2016 PAGE 2017 GENERAL JOURNAL ACCOUNT TITLE POST. REF DATE DEBIT CREDIT 852.410.76 Jan. 01 10,687.46 Cash Deferred Bond Issue Costs Discount on Bonds Payable Bonds Payable 36.910.78 900,000.00 10.687.46 900,000.00 10.687.46 Interest Expense Dec 31 Dec 31 60.416.88 60,416.88 6.416.88 Discount on Bonds Payable 54.000.00 Cash 6,416.88 Dec 31 Dec. 51 2.137.49 2.137.49 2.137.49 Interest Expense Deferred Bond Issue Costs Deferred Bond Issue Costs 24157.49 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 PAGE 2016 PAGE 2017 GENERAL JOURNAL POST. REF. DEBIT CREDIT DATE Dec. 31 60,866.06 ACCOUNT TITLE Interest Expense Discount on Bonds Payable Cash 6.866.06 54.000.00 Interest Expense Deferred Bond Issue Costs 2.157.49 2.137.49