Question
In: Accounting
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price....
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 110 Grocers' Supply Corporation bonds for $385,000. | ||
| 28 | Received interest of $2,400 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 $418,000. |
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.)
2. Indicate any amounts that Rantzow-Lear Company
would report in its 2018 balance sheet and income statement as a
result of this investment.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price,...
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 130 Grocers’ Supply
Corporation bonds at par for $585,000. 28 Received interest of
$3,200 from the Grocers’ Supply Corporation bonds. 31 Recorded any
necessary adjusting...
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price,...
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 130 Grocers’ Supply Corporation bonds at par for
$585,000.
28
Received interest of $3,200 from the Grocers’ Supply
Corporation bonds.
31
Recorded any necessary adjusting...
antzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price....
antzow-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 100 Grocers' Supply
Corporation bonds at par for $350,000.
28
Received interest of $2,000 from
the Grocers’ Supply Corporation bonds.
31
Recorded any necessary adjusting
entry relating to the Grocers' Supply Corporation bonds....
Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price....
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 185 Grocers' Supply
Corporation bonds for $462,500.
28
Received interest of $5,400 from
the Grocers’ Supply Corporation bonds.
31
Recorded any necessary adjusting
entry relating to the Grocers' Supply Corporation bonds. The market...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price.
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2021, gains from selling trading securities totaled $8 million, losses from selling trading securities were $11 million, and the company had earned $5 million in interest revenue. The following selected transactions relate to American’s investments in trading securities and equity securities during December 2021, and the first week of 2022. The company’s fiscal year ends on December...
S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On...
S&L Financial buys and sells securities expecting to earn
profits on short-term differences in price. On December 27, 2016,
S&L purchased Coca-Cola common shares for $805,000 and sold the
shares on January 3, 2017, for $809,000. At December 31, the shares
had a fair value of $800,500. These securities were classified as
Trading Securities.
On December 27, 2016, S&L purchased Coca-Cola common shares
for $730,000 and sold the shares on January 3, 2017, for
$733,000.
At December 31, the shares...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in...
American Surety and Fidelity buys and sells securities expecting
to earn profits on short-term differences in price. For the first
11 months of 2021, gains from selling trading securities totaled $7
million, losses from selling trading securities were $10 million,
and the company had earned $5 million in interest revenue. The
following selected transactions relate to American's investments in
trading securities and equity securities during December 2021, and
the first week of 2022. The company's fiscal year ends on December...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in...
American Surety and Fidelity buys and sells securities expecting
to earn profits on short-term differences in price. For the first
11 months of 2021, gains from selling trading securities totaled $4
million, losses from selling trading securities were $7 million,
and the company had earned $5 million in interest revenue. The
following selected transactions relate to American's investments in
trading securities and equity securities during December 2021, and
the first week of 2022. The company's fiscal year ends on December...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in...
American Surety and Fidelity buys and sells securities expecting
to earn profits on short-term differences in price. For the first
11 months of 2021, gains from selling trading securities totaled $8
million, losses from selling trading securities were $11 million,
and the company had earned $5 million in interest revenue. The
following selected transactions relate to American's investments in
trading securities and equity securities during December 2021, and
the first week of 2022. The company's fiscal year ends on December...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in...
American Surety and Fidelity buys and sells securities expecting
to earn profits on short-term differences in price. For the first
11 months of 2018, gains from selling trading securities totaled $8
million, losses were $11 million, and the company had earned $5
million in investment revenue. The following selected transactions
relate to American's trading account and equity securities
investment account during December 2018, and the first week of
2019. The company's fiscal year ends on December 31. No trading
securities...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- explain the relationship between the SEC and the various private sector standard setting bodies that have,...
- You have been asked to prepare a December cash budget for Ashton Company, a distributor of...
- Holly bought a 7-year bond, with a 3% coupon paid semi annually. It was priced to...
- METAR Abbreviations METAR (Meteorological Aviation Report) is a format for reporting weather information, either for pilots...
- The data below are the heights of fathers and sons (inches). There are 8 rows in...
- Without quantization procedure how much of actual information is lost during analog to digital conversion process??...
- 11. Suppose that a 32M × 16 memory built using 512K × 8 RAM chips and...
ADVERTISEMENT