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Rantzow-Lear Company buys and sells securities exp...

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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's trading account occurred during Decmeber 2011 and the first week of 2012. 2011 Dec. 17 Purchased 100,000 Grocers' Supply Corporation preferred shares for $350,000. 28 Received cash dividends of $2,000 from the Grocers' Supply Corporation prefered shares. 31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation preferred shares. The market price of the stock was $4 per share 2012 Jan. 5 Sold the Grocers' Supply Corporation preferred shares for $395,000. Required: Prepare the appropriate journal entry for each transaction Indicate any amounts that Rantzow-Lear Company would report in its 2011 balance sheet and income statement

 

Paper#6570 | Written in 18-Jul-2015

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