On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $672,973 75 The bonds carry a stated rate of interest of 9 , were purchased to yield 10 , 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 $700,000 Reid is on a fiscal year accounting period ending October 31 and uses the effective interest method CHART OF ACCOUNTS Reid Corporation General Ledger ASSETS 111 Cash 121 Accounts Receivable 137 Interest 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 EQUITY 311 Common Stock 331 Retained Earnings REVENUE 411 Sales Revenue 431 Interest Income 434 Gain on Sale of Debt Securities 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 559 Miscellaneous Expenses 599 Loss on Sale of Debt Securities 910 Income Tax Expense 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

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On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $672,973.75. The bonds carry a stated rate of interest of

On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $672,973.75. The bonds carry a stated rate of interest of 9%, were purchased to yield 10%, 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 $700,000. Reid is on a fiscal year accounting period ending October 31 and uses the effective interest method.

CHART OF ACCOUNTS

Reid Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
137	Interest 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

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income
434	Gain on Sale of Debt Securities

	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
559	Miscellaneous Expenses
599	Loss on Sale of Debt Securities
910	Income Tax Expense

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.