The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. Th

[answerhappygod]

The Following Selected Transactions Relate To Investment Activities Of Ornamental Insulation Corporation During 2021 Th 1 (183.71 KiB) Viewed 111 times

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $580,000 at face value. Sep. 1 Acquired $1,440,000 of American Instruments' 10% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $640,000. Nov. 1 Purchased $2,300,000 of M&D Corporation 6% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds $1,398,000 $2,378,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.

Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries n (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 > Record the acquisition of 8% Distribution Transformers Corporation bonds costing $580,000 at face value. Note: Enter debits before credits. Date General Journal Debit Credit March 31, 2021 Record entry Clear entry View general journal

Journal entry worksheet < 1 2 3 4 5 6 7 8 9 > Record the acquisition of $1,440,000 of American Instruments' 10% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date September 01, 2021 Record entry Clear entry View general journal < Prev 5 of 8 Next >

View transaction list Journal entry worksheet < 1 2 3 4 5 01 6 7 8 9 > Record the entry for the semiannual interest received on the Distribution Transformers bonds. Note: Enter debits before credits. Date General Journal Debit Credit September 30, 2021 Record entry Clear entry View general journal

View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2021 Record entry Clear entry View general journal

Journal entry worksheet < 1 2 3 4 5 6 7 8 9 > Record the entry for sale of Distribution Transformers bonds for $640,000. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2021 Record entry Clear entry View general journal

Journal entry worksheet < 1 2 3 4 5 6 7 8 9 > Record the acquisition of $2,300,000 of M&D Corporation 6% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date November 01, 2021 Record entry Clear entry View general journal

View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 8 9 Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal

Journal entry worksheet < 1 2 3 4 5 6 7 8 9 Record the interest accrual for M&D bonds. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal

Journal entry worksheet < 1 2 3 4 5 6 7 8 Record the entry to adjust fair value of the investments at year-end. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general journal