Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term price, and holds these investments in its trading portfolio. The company's fiscal year ends on The following selected transactions relating to Rantzow-Lear's trading account occurred duri 2021 and the first week of 2022. 2021 Dec. 17 Purchased 100 Grocers Supply Corporation bonds at par for $350,000. 28 Received interest of $2,000 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation price of the bond was $4,000 per bond. 2022 an. 5 Sold the Grocers Supply Corporation bonds for $395,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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answer in text form please (without image), Note: .Every entry should have narration please
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in
price, and holds these investments in its trading portfolio. The company's fiscal year ends on December 31.
The following selected transactions relating to Rantzow-Lear's trading account occurred during December
2021 and the first week of 2022.
2021
Dec. 17 Purchased 100 Grocers Supply Corporation bonds at par for $350,000.
28 Received interest of $2,000 from the Grocers' Supply Corporation bonds.
31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market
price of the bond was $4,000 per bond.
2022
Jan. 5 Sold the Grocers' Supply Corporation bonds for $395,000.
Required:
1. Prepare the appropriate journal entry or entries for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income
statement as a result of this investment.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Transcribed Image Text:Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price, and holds these investments in its trading portfolio. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2021 and the first week of 2022. 2021 Dec. 17 Purchased 100 Grocers Supply Corporation bonds at par for $350,000. 28 Received interest of $2,000 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $4,000 per bond. 2022 Jan. 5 Sold the Grocers' Supply Corporation bonds for $395,000. Required: 1. Prepare the appropriate journal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment. Complete this question by entering your answers in the tabs below. Required 1 Required 2
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