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 17 Purchased 115 Grocers' Supply Corporation bonds for $402,500. 28 Received interest of $2,600 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 $4, 000 per bond. Dec. 2019 Sold the Grocers' Supply Corporation bonds for $437,000 Jan. 5 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.) Debit No Date General Journal Credit December 17, 201 Investment in Grocers' Supply bonds 1 Cash December 28, 201 Cash 2 Dividend revenue December 31, 201 Fair value adjustment 3 Unrealized holding gain-NI Cash 4 January 05, 2019 Gain on investments Investment in Grocers' Supply bonds X January 05, 2019 Unrealized holding gain-NI 5 X LO 2. Indicate any amounts that Rantzow-Lear Company would report in its 2018 balance sheet and income statement as a result of this investment. Balance Sheet (short-term investment): Income Statement