Question

The following bond investment transactions were completed during 2014 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.
a. Journalize the entries for these transactions.
b. Provide the December 31, 2014, adjusting journal entry for semiannual interest earned on the bonds.



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  • CreatedFebruary 28, 2014
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