Hallmark company issued at 2,000,000 bond on January 1, 2014. The bond was dated January 1, 2014 had an 8% stated rate, pays interest annually on December 31, and sold for $2,200,600 at a time when the market rate of interest was 6%. Hallmark uses the effective-interest method to account for its bonds.

Prepare the necessary journal entry for each of the following dates:

January 1, 2014

December 31, 2014

December 31, 2015