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Rantrow-Lear Company buys and sells debt securities expecting to com profits on short-term differences in price, and holds these investments in its trading portfolio. The

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Rantrow-Lear Company buys and sells debt securities expecting to com profits on short-term differences in price, and holds these investments in its trading portfolio. The company's fiscal year ends on December 31 The following selected transactions relating to Rantrow.Lear's trading account occurred during December 2021 and the first week of 2022 2021 Dec. 17 Purchased 185 Grocers Supply Corporation bonds at par for 549,500 28 received interest of $5,400 from the Grocers Supply Corporation bonds 31 Recorded any necessary adjusting entry relating to the Grocera Supply Corporation bonds. The market price of the bond was 33,000 per bond. 2022 Jan. S sold the grocers' supply corporation bonds for 3527,250 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 rest of Investment Purchased 185 Grocers' Supply Corporation bonds at par for $462,500. Received interest of $5,400 from the Grocers' Supply Corporation bonds. Record any necessary adjusting entry relating to the Grocers' Supply Corporation bonds on December 31. The market price of the bonds was $3,000 per bond. Record the entry to adjust fair value of the investment on date of sale. Sold the Grocers' Supply Corporation bonds for $527,250. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statements are of this investment Balance Sheet December 31, 2021 Current Assets Interest revenue Income Statement: 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 company's fiscal year ends on December 31 The following selected transactions relating to Rantzow-Lear's trading account occurred during December 2021 and the first week of 2022 2021 Dec. 17 Purchased 185 Grocers Supply Corporation bonds at par for $462,500 28 Received interest of $5,400 from the GrocersSupply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' supply corporation bonds. The market price of the bond was $3,000 per bond. 2022 Jan. 5 sold the Grocers Supply Corporation bonds for $527, 250. 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

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