On January 1, 2019, Rodgers Company purchased $100,000 face value, 8%, 3-year bonds for $97,421.09, a price that yields a 9% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021. Rodgers Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 431 Interest Income 141 Inventory 434 Gain on Sale of Investment 152 Prepaid Insurance 181 Equipment EXPENSES 500 Cost of Goods Sold 189 Accumulated Depreciation 191 Investment in Held-to-Maturity Debt Securities 511 Insurance Expense 512 Utilities Expense LIABILITIES 521 Salaries Expense 532 Bad Debt Expense 211 Accounts Payable 231 Salaries Payable 540 Interest Expense 541 Depreciation Expense 250 Unearned Revenue 261 Income Taxes Payable 559 Miscellaneous Expenses 599 Loss on Sale of Investment EQUITY 910 Income Tax Expense 311 Common Stock 331 Retained Earnings 1. Record the purchase of the bonds on January 1, 2019. General Journal Instructions PAGE 2019 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 3. Record the receipts of interest on June 30, 2019, and June 30, 2021. General Journal Instructions PAGE 2019 PAGE 2021 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. Additional Instruction RODGERS COMPANY Bond Investment Interest Income and Discount Amortization Schedule Effective Interest Method Interest Income Investment in Debt Securities Date Cash Debit Carrying Value of Debt Securities Credit Debit 01/01/19 06/30/19 12/31/19 06/30/20 12/31/20 06/30/21 12/31/22