Holden decides to go visit Phoebe, and he buys her the record "Little Shirley Beans" as a gift. It's a children's record, so he thinks that she will like it. However, on his way home through the park, Holden drops the record and it shatters. When he gets home, he gives the record to Phoebe anyway, explaining what happened on his way through the park. Phoebe knows immediately that Holden has yet again been kicked out of school, and she is angry with him because he cannot stay in school, not because the record is broken.
The broken record is symbolic of both Holden's losing his innocence and his life "shattering" into little pieces. Holden cannot seem to keep his life on a straight path, and the record symbolizes Holden's mistakes at school. Normally, Phoebe is supportive of Holden, however, he must now realize that he cannot get away with any behavior that he chooses to exhibit because there will be consequences in the end.