On March 31, 2018, Brodie Corporation acquired bonds with a par value of $300,000 for $313,650. The bonds are due December 31, 2023, carry a 9% 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 companys financial statements (no calculations are required).

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1	Jan 1	Investment in Held-to-Maturity Debt Securities (313,650 - 6,750)		306,900
2		Interest Income (300,000*9%)*3/12		6,750
3		Cash			313,650
4	June 30	Cash (300,000*9%)*(6/12)		13,500
5		Investment in Held-to-Maturity Debt Securities		???	???
6		Interest Income			???
7	Dec 31	Cash(300,000*9%)*(6/12)		13,500
8		Investment in Held-to-Maturity Debt Securities		???	???
9		Interest Income			???

Please explain how you came up with the answer.