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In class exercise 12-3 Bond-AFS Rantzow-Lear Company invests in bonds. The company's fiscal year ends on December 31. 1. 12/17/2021 Purchased 140 Grocers' Supply Corporation
In class exercise 12-3 Bond-AFS Rantzow-Lear Company invests in bonds. The company's fiscal year ends on December 31. 1. 12/17/2021 Purchased 140 Grocers' Supply Corporation bonds at par for $630,000. 2. 12/28/2021 Received interest of $3,600 from the Grocers' Supply Corporation bonds. 3. 12/31/2021 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $5.000 per bond. 4. 1/5/2022 Sold the Grocers' Supply Corporation bonds for $665,000. Required: Prepare the appropriate journal entry or entries for each transaction assuming the bond investment is classified as AFS securities (Available for Sales)
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