Entries for Investment in Bonds, Interest, and Sale of Bonds The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 39.1,000 government bonds at 100 plus accrued interest of $195 (one month). The bonds pay 6% annual interest on July 1 and January 1. Received semiannual interest on bond investment. July 1 Aug. 30 Sold 15, $1,000 bonds at 98 plus $150 accrued interest (two months). a. Journalize the entries for these transactions. orcompound transaction, i an amount bor deel et re Assume a 360-day year. Do not round interim calculations. Round nnal answers to nearest do ar, re a tn leave it blank. Investments-Government Bonds Year 1, Jan. 31 Interest Recelvable Cash Interest Recelvable Interest Revenue Year 1, Aug. 30 Cash Loss on Sale of Investments Interest Revenue Investments-Government Bonds Foedback Check My Work Ned Check My Work Investments-Government Bonds Feedback Check My Work a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. Record the interest revenue as earned. Bond principal x interest rate x time Total interest. Remember to consider any receivable on the book Calculate the proceeds: First compute the % x face amount of bonds sold. Next, adjust the amount for any accrued interest. To complete the e transaction. b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds. 360-day year. Do not round interim calculations. Round final answers to nearest dollar. Assume a Year 1, Dec. 31 Interest Receivable Interest Revenue Feedback Check My Work b. Remember to accrue the interest only on the remaining bonds after the sale. Use the same formula as in part a adjusted for the appropriat Feedback Check My Work