Exercise 12-7 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. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2018 and the first week of 2019. 2018 Dec. 17 Purchased 145 Grocer's Supply Corporation bonds for $652,500. 28 Received interest of $3,800 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bonds were $5,000 per bond. 2019 Jan.5 Sold the Grocers' Supply Corporation bonds for $688,750. Required: 1. 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.) No General Journal December 17, 2016 Investment in Grocers' Supply bonds Credle 1 Debit 350,000 > 350,000 X 2 December 28, 2016 Cash Investment revenue 3,800 >> 3,800 3 December 31, 2016 Fair value adjustment Unrealized holding gain-NI 5,000 5.000 4 395,000 January 05, 2019 Cash Gain on investments Investment in Grocers' Supply bonds 45,000 X 35,000 5 > January 05, 2019 Cash Gain on Investments 688,750 688.750 ts 2. Indicate any amounts that Rantzow-Lear Company would report in its 2018 balance sheet and income statement as a res investment Answer is complete but not entirely correct. Balance Sheet (short-term investment): Trading securities Income Statement: WS 400.000 is Interest revenue Unrealized holding gain 2,000 50.000