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 150 Grocers’ Supply Corporation bonds at par for $525,000. | ||
28 | Received interest of $4,000 from the Grocers’ Supply Corporation bonds. | |||
31 | Recorded any necessary adjusting entry relating to the Grocers’ Supply Corporation bonds. The market price of the bond was $4,000 per bond. | |||
2022 | ||||
Jan. | 5 | Sold the Grocers' Supply Corporation bonds for $562,500. |
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.
|
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 190 Grocers’ Supply Corporation bonds at par for $475,000. 28 Received interest of $5,600 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, 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 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...
Question 1: 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 135 Grocers’ Supply Corporation bonds at par for $607,500. 28 Received interest of $3,400 from the Grocers’ Supply Corporation bonds. 31 Recorded any...
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. 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...
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 160 Grocers Supply Corporation bonds at par for $560,000. 28 Received interest of $4,400 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, 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 195 Grocers' Supply Corporation bonds at par for $487,500. 28 Received interest of $5,800 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. 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 180 Grocers' Supply Corporation bonds for $450,000. 28 Received interest of $5,200 from the Grocers' Supply Corporation bonds. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market...
Rants on-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 transaction relating to Rantzow-Lear’s trading account occurred during December 2018 and the first week of 2019 2018 Dec. 17. Purchased 120 Grocers’ Supply Corp bonds for $420,000 Dec. 28. Received interest of $2800 from the Grocer’s Supply Corp bonds Dec. 31. Recorded any necessary adjusting entry relating to the Grocers’ Supply...
I will give thumbs up for correct answers! Thank you! 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 200 Grocers' Supply Corporation bonds at par for $500,000. 28 Received interest of $6,000 from...
Exercise 12-7 Various transactions relating to trading securities (LO12-1, 12-3] 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. eBook 2018 Dec. 17 Purchased 100 Grocers' Supply Corporation bonds at par for $350,000. 28 Received interest of $2,800 from the Grocers' Supply Corporation bonds. 31 Recorded...