Question
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
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 companys fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lears trading account occurred during December 2024 and the first week of 2025.
December 17, 2024 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000.
December 28, 2024 Received interest of $2,000 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 $4,000 per bond.
January 5, 2025 Sold the Grocers' Supply Corporation bonds for $395,000.
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Audit Of EPAs Fiscal 2013 And 2012 Consolidated Financial Statements
Authors: U.S. Environmental Protection Agency
1st Edition
1500696218, 978-1500696214
