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Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in...

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Accounting

Rantzow-Lear Company buys and sells debt securities expecting to earn profits on short-term differences in price. The companys fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lears trading account occurred during December 2018 and the first week of 2019.
2018
Dec. 17 Purchased 125 Grocers' Supply Corporation bonds for $437,500.
28 Received interest of $3,000 from the Grocers Supply Corporation bonds.
31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation bonds. The market price of the bonds were $4,000 per bond.
2019
Jan. 5 Sold the Grocers' Supply Corporation bonds for $468,750.
Required:
1. Prepare the appropriate journal entry or entries for each transaction.

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