On January 1, 2018, Gatrong Corporation purchased 12%, 5-year Fleming Corporation bonds with a face value of $300,000. It expects to hold these bonds until maturity. The bonds pay interest semiannually on June 30 and December 31. Gatrong paid $311,307, a price that yields a 11% effective annual interest rate.

Required:

Prepare the journal entry of Gatrong to record the purchase of the bonds.