Sills Products acquired $ 2,960,000 face value, 5% bonds as a held- to-maturity investment on January 1 of the current year when the market rate of interest was 10%. Interest is paid annually each December 31. Sills purchased the bonds, which mature in six years, for $ 2,315,421. Sills amortizes the discount using the effective interest method. The fair value of the bonds at the end of the year is $ 2,185,455. Prepare the journal entries required on the date of acquisition and at the end of the first year after acquisition.