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The following bond investment transactions were completed during a recent year by Starks Company. Year 1 Jan. 31 PA Purchased 75, $1,000 government bonds at

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The following bond investment transactions were completed during a recent year by Starks Company. Year 1 Jan. 31 PA Purchased 75, $1,000 government bonds at 100 plus accrued interest of $375 (one month). The bonds pay 6% annual interest on July 1 and January 1 Received semiannual interest on bond investment Sold 35, 51,000 bonds at 98 plus $350 accrued interest (two months). July 1 TIO Aug 30 E 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 D. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds

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