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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 145 Grocers' Supply Corporation bonds for $652,500. | ||
28 | Received interest of $3,800 from the Grocers Supply Corporation bonds. | |||
31 | Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bonds were $5,000 per bond. | |||
2019 | ||||
Jan. | 5 | Sold the Grocers' Supply Corporation bonds for $688,750. |
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