The following bond investment transactions were completed during 2016 by Starks Company:

Jan.	31	Purchased 75, $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 35, $1,000 bonds at 98 plus $350 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.