I need the retained earnings.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I need the retained earnings.
### 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 145 Grocers' Supply Corporation bonds at par for $652,500 .
- **December 31, 2024:** Received interest of $3,800 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 bonds was $5,000 per bond.
- **January 5, 2025:** Sold the Grocers' Supply Corporation bonds for $688,750.

**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.

Complete this question by entering your answers in the tabs below.

#### Tab 1: Required 1

#### Tab 2: Required 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.**

*Balance Sheet*
```
December 31, 2024

Current Assets:
```

*Previous 6 of 14 Next*
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 145 Grocers' Supply Corporation bonds at par for $652,500 . - **December 31, 2024:** Received interest of $3,800 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 bonds was $5,000 per bond. - **January 5, 2025:** Sold the Grocers' Supply Corporation bonds for $688,750. **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. Complete this question by entering your answers in the tabs below. #### Tab 1: Required 1 #### Tab 2: Required 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.** *Balance Sheet* ``` December 31, 2024 Current Assets: ``` *Previous 6 of 14 Next*
### Financial Reporting for Investment in Bonds

**Question Prompt:**
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.

#### Financial Statements Overview:

##### Balance Sheet (December 31, 2024)
- **Current Assets:**
  - **Investment in Bonds:** $725,000
- **Retained Earnings:** [Blank]

##### Income Statement:
- **Interest Revenue:** $3,800
- **Gain on Investments:** $72,500

**Instructions:**
- Enter the amounts into the respective fields to see the financial impacts on the balance sheet and income statement for the year 2024.

**Navigation:**
- To proceed, click on "Required 1" and "Required 2" as per the instruction tabs.

**Note:**
This simulation ignores the effect of income taxes for the purpose of this exercise.

#### Explanation of Graphs or Diagrams:
There are no graphs or diagrams included in the provided content. The information is presented in a tabular format, detailing the financial entries relevant to the Rantzow-Lear Company's investment activities.

---

This structure provides a clear and concise presentation of the financial data, along with instructions on how to enter the information, suitable for an educational website.
Transcribed Image Text:### Financial Reporting for Investment in Bonds **Question Prompt:** 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. #### Financial Statements Overview: ##### Balance Sheet (December 31, 2024) - **Current Assets:** - **Investment in Bonds:** $725,000 - **Retained Earnings:** [Blank] ##### Income Statement: - **Interest Revenue:** $3,800 - **Gain on Investments:** $72,500 **Instructions:** - Enter the amounts into the respective fields to see the financial impacts on the balance sheet and income statement for the year 2024. **Navigation:** - To proceed, click on "Required 1" and "Required 2" as per the instruction tabs. **Note:** This simulation ignores the effect of income taxes for the purpose of this exercise. #### Explanation of Graphs or Diagrams: There are no graphs or diagrams included in the provided content. The information is presented in a tabular format, detailing the financial entries relevant to the Rantzow-Lear Company's investment activities. --- This structure provides a clear and concise presentation of the financial data, along with instructions on how to enter the information, suitable for an educational website.
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