Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2018 and the first week of 2019. 2018 Dec. 17 Purchased 125 Grocers Supply Corporation bonds for $437,500 28 Received interest of $3,000 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 $468, 750. Required 1. Prepare the appropriate journal entry or entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. Date General Journal Debit Credit December 17, 2018 Investment in Grocers' Supply bonds 437,500 Cash 437,500 December 28, 2018 Cash 3,000 Interest revenue 3,000 December 31, 2018 Fair value adjustment 62,500 Unrealized holding gain-NI 62,500 4 January 05, 2019 Unrealized holding loss-NI 62,500 Fair value adjustment 62,500 January 05, 2019 Cash 468,750 31,250 437,500 Gain on investments Investment in Grocers' Supply bonds 2. Indicate any amounts that Rantzow-Lear Company would report in its 2018 balance sheet and income statement as a result of this investment. Answer is complete but not entirely correct. Balance Sheet (short-term investment): Trading securities 500,000 Income Statement: Investment revenue $ 3,000 Unrealized holding gain 62,500