The following bond investment transactions were completed during 2016 by Starks Company Jan. 31. Purchased 75, $1,000 government bonds at 100 plus 30 days’ accrued interest. The bonds pay 6% annual...

The following bond investment transactions were completed during 2016 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, 2016, adjusting journal entry for semiannual interest earned on the bonds.