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 2024. 2024 Dec. 17 Purchased 100 Grocers Supply Corporation bonds at par for $350000. 28 Received interest of $2,000 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 $4,000 per bond. 2022 Jan. 5 Sold the Grocers' Supply Corporation bonds for $395,000.

Required:

1.Prepare the appropriate journal entry 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.