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On November 1,2018, Reid Corporation acquired bonds with a tace value of $700,000 for $673,618.61. The bonds carfy a stated rate of interest of 10%, were purchased to yield 11%, 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 Required: Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30,2019, and cctober 31,2019 , and the sake of the borsds Prepare joumal entres to record the purchase of the bonds, the interest receipts on April 30,2019 , and October 31,2019 , and the sate of the bonds General Joumal instuctons: CHART OF ACCOUNTS Reld Corporation General Ledger ASSETS 111 Cash 121 Accounts Receivable 137 interest Receivable 141 Inventory 152. Prepaid insurance 181 Equipment 189 Accumulated Depreciation 191 Investnent in Held-to-Maturity Debt Securises LABIUTES 211 Accounts Payable 231 Saturies Payabie 250 Uneaned Revenue 261 income Tures Payuble REVENUE 411 Sales Revenue 431 interest income 434 Gain on Sale of Debt Securities EXPENSES 500 Cost ol Goods Sold 511 insurance Expense 512 Utities Expense 521 Salaries Expense 532 Bad Debt Expense 540 interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 590 Loss on Sale of imvestivent 910 income Tar Eapense

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