accounting

Rantzow-Lear Company buys and sells securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2016 and the first week of 2017. 2016 Purchased 135,000 Grocers' Supply Dec. 17 Corporation preferred shares for $607,500. Received cash dividends of $3,400 from 28 the Grocers' Supply Corporation preferred shares. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation preferred shares. The market price of the stock was $5 per share 2017 Jan. 5 Sold the Grocers' Supply Corporation preferred shares for $641,250. Required: 1. Prepare the appropriate journal entry for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 12 3 4 5 Purchased 135,000 Rotation preferred SASFesSupply Note: Enter debits before credits. Date General Journal |Debit Cred December 17, 2016 2.Indicate any amounts that Rantzow-Lear Company would report in its 2016 balance sheet and income statement as a result of this investment. Sheet (short-term investment): Income Statement