Recording Bond Issuance nstructions Instructions Chart ot Accounts General Journal Present Value Table On January 1, 2016, Knorr Corporation issued Sl of 5-year bonds dated January 1, 201 The bonds pay interest annually on December 31 The bonds were issued to yield 7% Bond issue costs associated With the bonds totaled $27,560 53 Required: Prepare the journal entries to record the following: January 1, 2016 December 31, December 31, December 31, December 31, 2016 2016 2017 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