Rantzow-Lear Company buys and sells 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 2016 and the first week of 2017.

2016
Dec. 17		Purchased 190,000 Grocers' Supply Corporation preferred shares for $475,000.
28		Received cash dividends of $5,600 from the Grocers' Supply Corporation preferred shares.
31		Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation preferred shares. The market price of the stock was $3 per share.
2017
Jan. 5		Sold the Grocers' Supply Corporation preferred shares for $541,500.

Required:

1.

Prepare the appropriate journal entry for each transaction.

2.	Indicate any amounts that Rantzow-Lear Company would report in its 2016 balance sheet and income statement as a result of this investment.