Instructions On March 31, 2019, Brodie Corporation acquired bonds with a par value of $300,000 for $319,800. The bonds are due December 31, 2024, carry a 8% annual interest rate, pay interest on June 30 and December 31, and are being held to maturity. The accrued interest is included in the acquisition price of the bonds. Brodie uses straight-line amortization. Required: 1. Prepare journal entries for Brodie to record the purchase of the bonds and the first two interest receipts. 2. Next Level If Brodie failed to separately record the interest at acquisition, explain the errors that would occur in the company's financial statements (no calculations are required). Chart of Accounts CHART OF ACCOUNTS Brodie Corporation General Ledger ASSETS 111 Cash 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 569 Miscellaneous Expenses 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings General Joumal 1. Prepare journal entries for Brodie to record the purchase of the bonds on March 31 and the first two interest receipts on June 30 and December 31. General Journal Instructions How does grading work? PAGE 1 GENERAL JOURNAL Score: 75/112 ACCOUNT TITLE POST. REF. DEBIT CREDIT Mar 31 Investment in Held-to-Maturity Debt Securities 319,800.00 DATE 1 2 Interest Income 3 Cash 4 Jun. 30 Cash 8 9 Dec. 31 Investment in Held-to-Maturity Debt Securities Interest Income Cash Investment in Held-to-Maturity Debt Securities Interest Income Shaded Points