Exercise $12-7($Algo$)$ Various transactions relating to trading securities; financial statement effects $[$LO$12-$

$1,12-3]$

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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 $28,2024$ Received interest of $$4,600$ 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 $$643,500.$Required:

Prepare the appropriate journal entry or entries for each transaction.

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. Required $1$

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.

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$\backslash$table$[[$No$,$Date,General Journal,Debit,Credit$],[1,\backslash$table$[[$December $17,],[2024]],$Investment in bonds,$577,500,],[,$Cash,,$577,500],[2,\backslash$table$[[\backslash$table$[[$December $28,],[2024]]]],$Cash,$4,600,],[,$Interest revenue,,$4,600],[,,,,],[3,\backslash$table$[[$December $31,],[2024]],$Fair value adjustment,$82,500,],[,$Gain on investments $($unrealized$,$ NI$),,82,500],[,,,,],[4,$January $05,2025,$Loss on investments $($unrealized$,$ NI$),16,500,],[,$Fair value adjustment,,$16,500],[0],[5,$January $05,2025,$Cash,$643,500,],[,$Fair value adjustment,,$66,000],[,$Investment in bonds,, ina$$cate any amounts tnat kantzow$-$Lear company wou$$a report in its $\frac{\frac{?}{{?}_{}}}{{?}_4}$ Da$$ance sneet and income statement as a resuit ot

this investment. Ignore income taxes.

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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.