Journal Entries

• Purchased 165 Grocers' Supply Corporation bonds at par for $577,500.
• Received interest of $4,600 from the Grocers' Supply Corporation bonds.
• Record any necessary adjusting entry relating to the Grocers' Supply Corporation bonds on December 31. The market price of the bonds was $4,000 per bond.
• Record the entry to adjust fair value of the investment on date of sale.
• Sold the Grocers' Supply Corporation bonds for $643,500.

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 following selected transactions relating to Rantzow-Lear's trading account occurred during December 2021 and the first week of 2022. 2021 Dec. 17 Purchased 165 Grocers' Supply Corporation bonds at par for $577,5ee. 28 Received interest of $4,600 from the Grocers Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $4,80 per bond. 2022 Jan. 5 sold the Grocers' Supply Corporation bonds for $643,5ce. Required: 1. Prepare the appropriate journal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment. Balance Sheet December 31, 2021 Current Assets Income Statement