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,...
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to Rantzow-Lear’s trading account occurred during December 2021 and
the first week of 2022. 2021 Dec. 17 Purchased 130 Grocers’ Supply
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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...
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following selected transactions relate to American's investments in
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