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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 2021 and the first week of 2022.

2021
Dec. 17 Purchased 170 Grocers Supply Corporation bonds at par for $595,000.
28 Received interest of $4,800 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 $646,000.

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

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