The following bond investment transactions were completed during a recent year by starks company: year 1 jan. 31. purchased 75, $1,000 government bonds at 100 plus accrued interest of $375 (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 35, $1,000 bonds at 98 plus $350 accrued interest (two months).
a. journalize the entries for these transactions.
b. provide the december 31, year 1, adjusting journal entry for semiannual interest earned on the bonds.

In year 1, the bennetts' 25-year-old daughter, jane, is a full-time student at an out-of-state university but she plans to return home after the school year ends. in previous years, jane has never worked and her parents have always been able to claim her as a dependent. in year 1, a kind neighbor offers to pay for all of jane's educational and living expenses. which of the following statements is most accurate regarding whether jane's parents would be allowed to claim an exemption for jane in year 1 assuming the neighbor pays for all of jane's support? a.no, jane must include her neighbor's gift as income and thus fails the gross income test for a qualifying relative.b.yes, because she is a full-time student and does not provide more than half of her own support, jane is considered her parent's qualifying child.c.no, jane is too old to be considered a qualifying child and fails the support test of a qualifying relative.d.yes, because she is a student, her absence is considered as "temporary." consequently she meets the residence test and is a considered a qualifying child of the bennetts.