Clarke Inc., a public company, had the following transactions pertaining to debt investments held for trading purposes:

Jan. $1$ Purchased $70,4\%,$ $$1,000$ Redding Corp. bonds for $$70,000.$ Interest is payable semi$-$annually on July $1$ and January $1$

July $1$ Received semi$-$annual interest on Redding Corp. bonds.

$1$ Sold $35$ Redding Corp. bonds for $$38,000.$

Dec. $31$ Redding Corp. bonds were trading at $101.$

Instructions

a$)$ Journalize the transactions.

b$)$ Prepare the required adjusting entries at December $31.$