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 100 Grocers' Supply Corporation bonds at par for $350,000. | ||
| 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 bonds were $4,000 per bond. | |||
| 2019 | ||||
| Jan. | 5 | Sold the Grocers' Supply Corporation bonds for $395,000. |
Required: 1. Prepare the appropriate journal entry or entries for each transaction.
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Accounting And Finance An Introduction
Authors: Eddie McLaney, Peter Atrill
10th Edition
1292312262, 978-1292312262
