On October $1,2019,$ Jenkins Corporation bought bonds with a face value of $$200,000$ for $$199,175,$ which included accrued interest. The bonds are due December $31,2021,$ and carry a face rate of interest of $10\mathrm{.}5\%.$ Interest on the bonds is payable semiannually on June $30$ and December $31.$ Jenkins uses the straight$-$line method to amortize the discount.

Required:

$1.$ Prepare journal entries to record the purchase of the bonds, each interest receipt, and the retirement of the issue on December $31,2021.$

$2.$ Next Level If Jenkins failed to separately record the interest at acquisition, explain the errors that would occur in the company$$s financial statements $($no calculations are required$).$