Yuen Long Carecenters Ltd. provides financing and capital to the healthcare industry, with a particular focus on nursing homes for the elderly. The following selected transactions relate to bonds acquired as an investment by Yuen Long, whose fiscal year ends on December 31.

2017Jan.1Purchased at face value HK$1,250,000of Franco Nursing Centers, Inc.,10-year,7% bonds dated January 1, 2017, directly from Franco. Interest is paid

on January 1 of each year

.Dec.31. Accrual of interest at year-end on the Franco bonds.

(Assume that all intervening transactions and adjustments have been properly recorded and that the number of bonds owned has not changed from December 31, 2017, to December 31, 2019.)

2020Jan.1Received the annual interest on the Franco bonds.

Jan.1Sold HK$625,000Franco bonds at107.

Dec.31Accrual of interest at year-end on the Franco bonds.

a.

Journalize the listed transactions for the years 2017 and 2020.

b. Show the statement of financial position presentation of the bonds and interest receivable at December 31, 2017. Assume the investments are considered long-term.