Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need help with the answers marked with a red x next to them which are dollar amounts, thank you! Rantzow-Lear Company buys and

I just need help with the answers marked with a red x next to them which are dollar amounts, thank you! image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 portfollo. 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. December 17, 2024 Purchased 185 Grocers' Supply Corporation bonds at par for $462,500. December 28; 2024 Received interest of $5,400 fros the Grocers' Supply Corporation bonds. Decenber 31, 2024 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $3, eee per bond. January 5, 2025 Sold the Grocers. Supply Corporation bonds for $527,250. Required: 1. Prepare the appropriate journal 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Prepare the appropriate joumal entry or entries for each transaction. Note; If no entry is required for a transaction/event, select "No fournal entry required" in the first account field this investment. Ignore income taxes. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 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. Journal entry worksheet Record the entry to adjust fair value of the investment on date of sale. Note: Enter debits before credits. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{1}{|c|}{ Date } & General Journal & Dobit & Credit \\ \hline January 05, 2025 & Loss on investments (unrealized, NI) & 64,750 & \\ \hline & Fair value adjustment & & 64,750 \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline \end{tabular} 2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and in this investment. Ignore income taxes. Complete this question by entering your answers in the tabs below. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income stat this investment. Ignore income taxes. Journal entry worksheet (1) (2) 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. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance: Theory And Practice

Authors: Eddie McLaney

6th Edition

9780273673569

More Books

Students also viewed these Accounting questions

Question

=+c. Find or create a visual.

Answered: 1 week ago