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

2014

Jan. 1     Purchased at face value $2,000,000 of Franco Nursing Centers, Inc., 10-year, 8% bonds dated January 1, 2014, directly from Franco.
July 1     Received the semiannual interest on the Franco bonds.
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, 2014, to December 31, 2016.)

2017

Jan. 1    Received the semiannual interest on the Franco bonds.
Jan. 1    Sold $1,000,000 Franco bonds at 106. The broker deducted $6,000 for commissions and fees on the sale.
July 1    Received the semiannual interest on the Franco bonds.
Dec. 31  Accrual of interest at year-end on the Franco bonds.

Instructions
  (a) Journalize the listed transactions for the years 2014 and 2017.
  (b) Show the balance sheet presentation of the bonds and interest receivable at December 31, 2014. Assume the investments are considered long-term.