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.
July 1	Received semiannual interest on bond investment.
Aug. 30	Sold 15, $1,000 bonds at 96 plus $150 accrued interest (two months).

a. Journalize the entries for these transactions.

Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Year 1, Jan. 31	Investments-Government Bonds	fill in the blank ad8ee2fa4fc3004_2	fill in the blank ad8ee2fa4fc3004_3
	Interest Receivable	fill in the blank ad8ee2fa4fc3004_5	fill in the blank ad8ee2fa4fc3004_6
	Cash	fill in the blank ad8ee2fa4fc3004_8	fill in the blank ad8ee2fa4fc3004_9
Year 1, July 1	Cash	fill in the blank ad8ee2fa4fc3004_11	fill in the blank ad8ee2fa4fc3004_12
	Interest Receivable	fill in the blank ad8ee2fa4fc3004_14	fill in the blank ad8ee2fa4fc3004_15
	Interest Revenue	fill in the blank ad8ee2fa4fc3004_17	fill in the blank ad8ee2fa4fc3004_18
Year 1, Aug. 30		fill in the blank ad8ee2fa4fc3004_20	fill in the blank ad8ee2fa4fc3004_21
		fill in the blank ad8ee2fa4fc3004_23	fill in the blank ad8ee2fa4fc3004_24
		fill in the blank ad8ee2fa4fc3004_26	fill in the blank ad8ee2fa4fc3004_27
		fill in the blank ad8ee2fa4fc3004_29	fill in the blank ad8ee2fa4fc3004_30

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b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds.

Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar.

Year 1, Dec. 31		fill in the blank ead50ffd4f94045_2
			fill in the blank ead50ffd4f94045_4