Bond investment transactions were completed

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Reference no: EM13777519

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

ague 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.

Reference no: EM13777519

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