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Entries for Investment in Bonds, Interest, and Sale of Bonds The following bond investment transactions...

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Entries for Investment in Bonds, Interest, and Sale of Bonds The following bond investment transactions were completed during a recent year by Starks Company: Year 1 Jan. 31 Purchased 54, $1,000 government bonds at 100 plus accrued interest of $270 (one month). The bonds pay 6% annual interest on July 1 and January 1. July 1 Received semiannual interest on bond investment. Aug. 30 Sold 21, $1,000 bonds at 96 plus $210 accrued interest (two months). a. Journalize the entries for these transactions. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. Year 1, Jan. 31 Year 1, July 1 II110 III III 1111 Year 1, Aug. 30 b. Provide the December 31, Year 1, adjusting journal entry for semiannual interest earned on the bonds. Assume a 360-day year. Do not round interim calculations. Round final answers to nearest dollar. Year 1, Dec. 31

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