Question
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price. The companys fiscal year ends on December 31. The
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price. The companys fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lears trading account occurred during December 2018 and the first week of 2019
. 2018 Dec. 17 Purchased 110 Grocers' Supply Corporation bonds for $385,000.
28 Received interest of $2,400 from the Grocers Supply Corporation bonds.
31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bonds were $4,000 per bond.
2019 Jan. 5 Sold the Grocers' Supply Corporation bonds for $418,000.
Required: 1. Prepare the appropriate journal entry or entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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