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 28, 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 o the bond 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 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 Income Statement: Investment in bonds Retained earnings Interest revenue Gain on investments $725,000 725,000 3,800 72,500 < Required 1 Required 2 >

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