1: The following selected transactions relate to investment activities of Ornamental Insulation Corporation. The company buys securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2015. 2016 Feb. 21 Mar. 18 Acquired Distribution Transformers Corporation common shares costing $400,000. Received cash dividends of $8,000 on the investment in Distribution Transformers common shares. Sep. 1 Oct. 20 Nov. 1 Dec. 31 Acquired $900,000 of American Instruments' 10% bonds at face value. Sold the Distribution Transformers shares for $425,000. Purchased M&D Corporation common shares costing $1,400,000. Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: 2017 American Instruments bonds M&D Corporation shares $ 850,000 $1,460,000 (Hint: Interest must be accrued for the American Instruments' bonds.) Jan. 20 Sold the M&D Corporation shares for $1,485,000. Mar. 1 Aug. 12 Sept. 1 Received semiannual interest of $45,000 on the investment in American Instruments bonds. Acquired Vast Communication common shares costing $650,000. Received semiannual interest of $45,000 on the investment in American Instruments bonds. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: Vast Communication shares American Instruments bonds $670,000 $830,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2016. 2. Indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments. 3. Prepare the appropriate journal entry for each transaction or event during 2017. 4. Indicate any amounts that Ornamental Insulation would report in its 2017 balance sheet and income statement as a result of these investments. American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2016, gains from selling trading securities totaled $8 million, losses were $11 million, and the company had earned $5 million in investment revenue. The following selected transactions relate to American's trading account during December 2016, and the first week of 2017. The company's fiscal year ends on December 31. No trading securities were held by American on December 1, 2016