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Rantzow-Lear Company buys and sells securities expecting to earn profits on short-term differences in price. The company's fiscal year ends on December 31. The following selected transactions relating to Rantzow-Lear trading account occurred during December 2013 and the first week of 2014. 2013 Dec 17 Purchased 100,000 Grocer's Supply Corpopration preferred shares for $350,000 28 Received cash dividends of $2,000 from the Grocer's Supply Corporation preferred shares 31 REcorded any necessary entry relating to the Grocer's Supply Corporation preferred shares. The market price of the stock was $4 per share 2014 Jan 5 Sold tje Grocer's Supply Corporation preferred shares for $395,000 Required:

1) Prepare the appropriate journal entry for each transaction

2) Indicate any amounts that Rantzow-Lear Company would report in its 2013 balance sheet and income statement as a result of this investment.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9945339

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