The following bond investment transactions were completed during 2016 by Starks Company: Jan. 31 Purchased 87, $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 45, $1,000 bonds at 99 plus $450 accrued interest.

Required: a. Journalize the entries for these transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

b. Provide the December 31, 2016, adjusting journal entry for semiannual interest earned on the bonds. Journalize the entries for the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

Journalize the entries for the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.

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JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8
9
10
11		Adjusting Entries
12
13