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:

Required: 1. Prepare the appropriate journal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment.

2021 Dec. 17 Purchased 175 Grocers' Supply Corporation bonds at par for $612,500. 28 Received interest of $5,000 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 $665,000