The following bond investment transactions were completed during 2014 by Starks Company: Jan. 31. Purchased 75, $1,000

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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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Corporate Financial Accounting

ISBN: 978-1133952411

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Feb 28, 2014 08:52 AM

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The following bond investment transactions were completed during 2014 by Starks Company: Jan. 31. Purchased 75, $1,000

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a 2014 Jan 31 InvestmentsGovernment Bonds 75000 Interest Receivable 375 Cash 75375 75000 6 ...View the full answer

Corporate Financial Accounting

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