Cheese Farms is a grower of hybrid seed corn for Steenbergen Genetics Corporation. It has had two exceptionally good years and has elected to invest its excess funds in bonds. The selected transactions, shown below, relate to bonds acquired as an investment by Cheese Farms, whose fiscal year ends on December 31.

2014
Jan. 1     Purchased at face value $400,000 of Stombaugh Corporation 10-year, 9% bonds dated January 1, 2014, directly from the issuing corporation.
July 1     Received the semiannual interest on the Stombaugh bonds.
Dec. 31   Accrual of interest at year-end on the Stombaugh bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and the number of bonds owned has not changed from December 31, 2014, to December 31, 2016.)

2017
Jan. 1     Received the semiannual interest on the Stombaugh bonds.
Jan. 1     Sold $200,000 of Stombaugh bonds at 114. The broker deducted $7,000 for commissions and fees on the sale.
July 1     Received the semiannual interest on the Stombaugh bonds.
Dec. 31   Accrual of interest at year-end on the Stombaugh bonds.

Instructions
  (a) Journalize the listed transactions for the years 2014 and 2017.
  (b) Show the balance sheet presentation of the bonds and interest receivable at December 31, 2014. Assume the investments are considered long-term.