Bond (held-to-maturity) investments The following bond investment transactions were completed by Starks Company: Jan. 31. Purchased $78,000 government bonds as a held-to-maturity investment at 100 plus accrued interest for 1 month. The bonds pay 5% annual interest on July 1 and January 1. July 1. Received semiannual interest on bond investment. Aug. 30. Sold $30,000 bonds at 99 plus accrued interest for 2 months. a. Journalize the entries for the preceding transactions. If an amount box does not require an entry, leave it blank. Jan. 31 Investments-Government Bonds Interest Receivable Cash 78,000 July 1 Cash Interest Receivable Interest Revenue Aug. 30 Cash Loss on Sale of Investments Interest Revenue Investments-Government Bonds 0000 000 b. Journalize the December 31 adjusting entry for semiannual interest earned on the bonds. If an amount box does not require an entry, leave it blank. Dec. 31 Interest Receivable Interest Revenue Feedback 33 Check My Work b. Record interest revenue as earned. Bond Principal x Interest Rate x Time = Total Interest. c. Journalize the receipt of $48,000 at the bonds' maturity on July 1. If an amount box does not require an entry, leave it blank. July 1 Cash 48,000 Investments-Government Bonds 48,000