On November 1, 2018, Reid Corporation acquired bonds with a face value of $600,000 for $576,262.03. The bonds carry a stated rate of interest of 8%, were purchased to yield 9%, pay interest semiannually on April 30 and October 31, were purchased to be held to maturity, and are due October 31, 2022. On November 1, 2019, in contemplation of a major acquisition, the bonds were sold for $600,000. Reid is on a fiscal year accounting period ending October 31 and uses the effective interest method. Required: Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2019, and October 31, 2019, and the sale of the bonds.

General Journal How does grading work? PAGE 1 GENERAL JOURNAL Score: 129/137 POST. REF. DEBIT CREDIT 1 DATE ACCOUNT TITLE Nov. 1, 2018 Investment in Held-to-Maturity Debt Securities Cash 576,262.03 2 576,262.03 3 Apr 30, 2019 Cash 24,000.00 4 1,931.79 5 25,931.79 6 Investment in Held-to-Maturity Debt Securities Interest Income Oct. 31, 2019 Cash Investment in Held-to-Maturity Debt Securities Interest Income 24,000.00 7 1.844.86 8 25,844.86 9 Nov. 1, 2019 Cash 600,000.00 10 Investment in Held-to-Maturity Debt Securities 580,038.68 11 Gain on Sale of Debt Securities 19,961.32