The following bond investment transactions were completed during a recent year by Starks Company:

Year 1
Jan.	31	Purchased 69, $1,000 government bonds at 100 plus accrued interest of $403 (one month). The bonds pay 7% annual interest on July 1 and January 1.
July	1	Received semiannual interest on bond investment.
Aug.	30	Sold 48, $1,000 bonds at 96 plus $560 accrued interest (two months).

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, Year 1, adjusting journal entry for semiannual interest earned on the bonds.