Exercise 12-7 (Algo) Various transactions relating to trading securities [LO12-1, 12-3] 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 200 Grocers' supply Corporation bonds at par for $500,000. 28 Received interest of $6,000 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 $3,000 per bond. Jan. 5 Sold the Grocers' Supply Corporation bonds for $560,000. 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. Prepare the appropriate journal entry or entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) \begin{tabular}{l} 1 Purchased 200 Grocers' Supply Corporation bonds at par \\ for $500,000. \\ 2 Received interest of $6,000 from the Grocers' Supply \\ Corporation bonds. \\ \hline 3 Record any necessary adjusting entry relating to the \end{tabular} 3 Record any necessary adjusting entry relating to the Grocers' Supply Corporation bonds on December 31. The market price of the bonds was $3,000 per bond. 4 Record the entry to adjust fair value of the investment on date of sale. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment