Floyd Limited had the following transactions pertaining to debt investments.

Jan.     1, 2020    Purchased 50 £1,000 Petal Co. 8% bonds for £50,000 cash. Interest is payable annually on January 1.
Dec. 31, 2020     Accrued interest on the Petal Co. bonds.
Jan.     1, 2021    Received interest on Petal Co. bonds.
Jan.     1, 2021    Sold 30 Petal Co. bonds for £33,500.

Instructions
a. Journalize the transactions.
b. Prepare the adjusting entry for the accrual of interest at December 31, 2021.