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it says its incomplete I am having trouble figuring out why Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences
it says its incomplete I am having trouble figuring out why
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 ollowing selected transactions relating to Rantzow-Lear's trading account occurred during December 2024 and ihe first week of 2025. December 17, 2024 Purchased 130 Grocers' Supply Corporation bonds at par for $585,000. December 28, 2024 Received interest of $3,200 from the Grocers' Supply Corporation bonds. December 31, 2024 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $5,000 per bond. January 5, 2025 Sold the Grocers' Supply Corporation bonds for $617,500. 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. Complete this question by entering your answers in the tabs below. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance this investment. Ignore income taxesStep by Step Solution
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