On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30 and December 31 to yield 6%. Use the following format and round figures to nearest dollar.

The bonds were issued for $1,851,234.

a.- Journal entry for issuance of bond

b. Journal entry for first interest payment using the effective interest method

c. Journal entry for second interest payment using the effective interest method