On January 1, 2019, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2019. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Debt issuance costs associated with the bonds totaled $18,000.

Required:
Prepare the journal entries to record the following:
January 1, 2019 Sold the bonds at an effective rate of 10%
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