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 December 2020 and the first week of 2021.

2020
Dec. 17 Purchased 190,000 Grocers' Supply Corporation preferred shares for $475,000.
28 Received cash dividends of $5,600 from the Grocers' Supply Corporation preferred shares.
31 Recorded any necessary adjusting entry relating to the Grocers' Supply Corporation preferred shares. The market price of the stock was $3 per share.

2021
Jan. 5 Sold the Grocers' Supply Corporation preferred shares for $541,500.

1. Prepare the appropriate journal entry or entries for each transaction.
2. Indicate any amounts that Rantzow-Lear Company would report in its 2021 balance sheet and income statement as a result of this investment.