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The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 54, $1,000 government bonds at 100 plus accrued interest of $270 (1
The following bond investment transactions were completed by Starks Company: Jan. 31 Purchased 54, $1,000 government bonds at 100 plus accrued interest of $270 (1 month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 21, $1,000 bonds at 97 plus $210 accrued interest (2 months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Jan. 31 July 1 III III III II III III Aug. 30 July 1 I III III. I III III. Aug. 30 b. Journalize the December 31 adjusting entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. If an amount box does not require an entry, leave it blank. Dec. 31 88 c. Journalize the receipt of $33,000 at the bonds' maturity on July 1. If an amount box does not require an entry, leave it blank. July. 1
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