Instructions On December 31, 2018, Leslie Company held an investment in bonds of Kaufmann Company which it categorized as being held to maturity. At that time, the 11%, $100,000 face value bonds had a carrying value of $106,144.54 and were being amortized using the effective interest method based on a market rate of 10%. Interest on these bonds is paid annually each December 31. On December 31, 2019, after recording the interest earned, Leslie decided to reclassify the Kaufmann bonds to its available-for-sale category in anticipation of a major restructuring. At that time, the ending quoted market price for the bonds was $102,000. Required: Prepare the journal entries on December 31, 2019, to record the interest earned and the reclassification. Chart of Accounts CHART OF ACCOUNTS Leslie Company General Ledger ASSETS 111 Cash 114 Investment in Available-for-Sale Securities 119 Allowance for Change in Fair Value of Investment 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation 191 Investment in Held-to-Maturity Debt Securities LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue 431 Interest Income EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 912 Unrealized Holding Gain/Loss: Available for Sale Securities EQUITY 311 Common Stock 331 Retained Earnings General Journal Prepare the journal entries on December 31, 2019, to record the interest earned and the reclassification. General Journal Instructions 1 2 3 4 5 6 7 PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT