1 Problem 12-5 (Algo) Various transactions related to trading securities (L012-1, 12-3) BOOK 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 Omamental on December 31, 2020 Mar. 31 Acquired 8 Distribution Transformers Corporation bonds costing $596,000 at face value. Sep. 1 Acquired $1,470,000 of American Instruments: 104 bonds at face value. Sep. 30 Received seniannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $655,800. Nov 1 Purchased $2,350,000 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 Heerences Anerican Instruments bonds MSD Corporation bonds $1,429,000 $2,429,000 (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 12/342021 balance sheet as a result of those investments include totals for net income, comprehensive income, and retained earnings as a result of these investments