Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement effects [LO12-1, 12-3] 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 2024 and the first week of 2025. December 17, 2024 Purchased 175 Grocers' Supply Corporation bonds at par for $612,500. December 28, 2024 Received interest of $5,00e from the Grocers' Supply Corporation bonds. December 31, 2024 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $4,000 per bond. January 5, 2025 sold the Grocers' Supply Corporation bonds for $665,000. Required: 1. Prepare the appropriate journal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this Investment. Ignore Income taxes.
Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement effects [LO12-1, 12-3] 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 2024 and the first week of 2025. December 17, 2024 Purchased 175 Grocers' Supply Corporation bonds at par for $612,500. December 28, 2024 Received interest of $5,00e from the Grocers' Supply Corporation bonds. December 31, 2024 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bond was $4,000 per bond. January 5, 2025 sold the Grocers' Supply Corporation bonds for $665,000. Required: 1. Prepare the appropriate journal entry or entries for each transaction. 2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and income statement as a result of this Investment. Ignore Income taxes.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14P: Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and...
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![Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement
effects [LO12-1, 12-3]
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 2024 and the first week
of 2025.
December 17, 2024 Purchased 175 Grocers' Supply Corporation bonds at par for $612,500.
December 28, 2024 Received interest of $5,000 from the Grocers' Supply Corporation bonds.
December 31, 2024
January 5, 2025 sold the Grocers' Supply Corporation bonds for $665,000.
Required:
1. Prepare the appropriate journal entry or entries for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and Income
statement as a result of this Investment. Ignore Income taxes.
Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds.
The market price of the bond was $4,000 per bond.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the appropriate journal entry or entries for each transaction.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
1
Journal entry worksheet
2
3 4 5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fec20c2bc-5613-42f1-b46c-feb8a3b0649e%2Febf8a1f9-9534-447a-8199-c71e421377a1%2Fo18jr3c_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 12-7 (Algo) Various transactions relating to trading securities; financial statement
effects [LO12-1, 12-3]
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 2024 and the first week
of 2025.
December 17, 2024 Purchased 175 Grocers' Supply Corporation bonds at par for $612,500.
December 28, 2024 Received interest of $5,000 from the Grocers' Supply Corporation bonds.
December 31, 2024
January 5, 2025 sold the Grocers' Supply Corporation bonds for $665,000.
Required:
1. Prepare the appropriate journal entry or entries for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2024 balance sheet and Income
statement as a result of this Investment. Ignore Income taxes.
Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds.
The market price of the bond was $4,000 per bond.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare the appropriate journal entry or entries for each transaction.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
1
Journal entry worksheet
2
3 4 5
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