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, 2024Current 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.

Retained earnings is one of the important component of business. This is included in shareholders…

Answered: I need the retained earnings.

Business

Accounting

I need the retained earnings.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter13: Marketable Securities And Derivatives

Section: Chapter Questions

Problem 23P

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