Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement effects [LO121,123] 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 2024 and the first week of 2025 . Decenber 17,2024 Purchased 145 Grocerat Supply corporation bonds at par for 5652,500, December 28,2024 Recelved interest of $3,800 frem the frocerai 5 , 2 pply Corporation bonds. maxket price of the bond was $5,000 per bond. January 5,2025 Fold the Grocers supply Corporation botid for 56 is, 750. Required: 1. Prepare the appropriate joumal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this investment. Ignore income taxes. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this investment. Ignore income taxes. Prepare the appropriate journal entry or entries for each transaction. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement effects [LO121,123] 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 2024 and the first week of 2025 . Decenber 17,2024 Purchased 145 Grocerat Supply corporation bonds at par for 5652,500, December 28,2024 Recelved interest of $3,800 frem the frocerai 5 , 2 pply Corporation bonds. maxket price of the bond was $5,000 per bond. January 5,2025 Fold the Grocers supply Corporation botid for 56 is, 750. Required: 1. Prepare the appropriate joumal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this investment. Ignore income taxes. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this investment. Ignore income taxes. Prepare the appropriate journal entry or entries for each transaction. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field
