Entries for investment in bonds, interest, and sale of bonds OBJ. 2 The following bond investment transactions were completed during 2016 by Starks Company:

Jan. 31. Purchased 75, $1,000 government bonds at 100 plus 30 days’ accrued interest.

The bonds pay 6% annual interest on July 1 and January 1.

July 1. Received semiannual interest on bond investment.

Aug. 29. Sold 35, $1,000 bonds at 98 plus $350 accrued interest.

a. Journalize the entries for these transactions.

b. Provide the December 31, 2016, adjusting journal entry for semiannual interest earned on the bonds.