Ch The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt 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 in years when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 6% Distribution Transformers Corporation bonds costing $540,000 at face value. Sep. 1 Acquired $1,110,000 of American Instruments' 8% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $579,000. Nov. 1 Purchased $1,560,000 of M&D Corporation 4% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: es American Instruments bonds M&D Corporation bonds $1,046,000 $1,635,000 (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. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 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. Add to Babylist B Hotel Hyatt House... 2: Login - Sofi mework [due day 7] Saved Journal entry worksheet ch O i IO 144 % 5 & 7 C 6 8 9 congtexter on.com/ext/map/index.html?_con to Babylist B Hotel Hyatt House... 2: Login - SoFi Saved work [due day 7) Journal entry worksheet 1 3 2 4 5 6 7 9 8 10 Record the acquisition of $1,110,000 of American Instruments' 8% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date September 01 2021 Record entry Clear entry View general journal O ON IO to > % 5 6 7 8 9 tion.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms. to Babylist B Hotel Hyatt House... 2: Login - SoFi ework (due day 7] Saved Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record the entry for the semiannual interest received on the Distribution Transformers bonds. Note: Enter debits before credits. General Journal Debit Credit Date September 30, 2021 Record entry Clear entry View general journal o 10C % 5 & 7 C 8 9 Content + s Question 2 - Wk 1 - Apply: Home X n.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.m Babylist B Hotel Hyatt House... Login - SoFi Saved york [due day 7] i Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > 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 ou 5 % Add to Babylist E Hotel Hyatt House... 2. Login - SoFi mework (due day 7] Saved Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the entry for the reclassification adjustment on the date of sale. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2021 Record entry Clear entry View general journal O DI IO do % 5 & 7 8 9 ework (due day 7] Saved Journal entry worksheet 2 3 4 5 6 7 8 9 10 > Record the entry for sale of Distribution Transformers bonds for $579,000. Note: Enter debits before credits. Date General Journal Debit October 02, 2021 Credit Record entry Clear entry View general journal IOI 15 . do 4 5 6 R. T k (due day /] i ournal entry worksheet 5 6 7 2 3 4 co 1 9 10 > Record the acquisition of $1,560,000 of M&D Corporation 4% bonds at face value. ote: Enter debits before credits. General Journal Debit Credit Date November 01, 2021 Record entry Clear entry View general journal W FM IDI id - - 4 % 5 & 7 8 9 R Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general journal ch 5 IOI Il % 5 6 7 00 9 R Saved mework [due day 7] Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 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 ch O BE IDI All 4 % 5 & 00 9 to Babylist B Hotel Hyatt House... Login - Sofi Saved work [due day 7] 0 Journal entry worksheet ]00 o@ do 144 5 & 7 C 8 9 Vorkoue day Saved $ Net income Statement of comprehensive income: 0 Other comprehensive income: 0 Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets $ 0 Shareholders' Equity Add to Babylist B Hotel Hyatt House... 2: Login - Sofi mework [due day 7] Saved Journal entry worksheet ch O i IO 144 % 5 & 7 C 6 8 9 congtexter on.com/ext/map/index.html?_con to Babylist B Hotel Hyatt House... 2: Login - SoFi Saved work [due day 7) Journal entry worksheet 1 3 2 4 5 6 7 9 8 10 Record the acquisition of $1,110,000 of American Instruments' 8% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date September 01 2021 Record entry Clear entry View general journal O ON IO to > % 5 6 7 8 9 tion.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms. to Babylist B Hotel Hyatt House... 2: Login - SoFi ework (due day 7] Saved Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Record the entry for the semiannual interest received on the Distribution Transformers bonds. Note: Enter debits before credits. General Journal Debit Credit Date September 30, 2021 Record entry Clear entry View general journal o 10C % 5 & 7 C 8 9 Content + s Question 2 - Wk 1 - Apply: Home X n.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.m Babylist B Hotel Hyatt House... Login - SoFi Saved york [due day 7] i Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > 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 ou 5 % Add to Babylist E Hotel Hyatt House... 2. Login - SoFi mework (due day 7] Saved Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the entry for the reclassification adjustment on the date of sale. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2021 Record entry Clear entry View general journal O DI IO do % 5 & 7 8 9 ework (due day 7] Saved Journal entry worksheet 2 3 4 5 6 7 8 9 10 > Record the entry for sale of Distribution Transformers bonds for $579,000. Note: Enter debits before credits. Date General Journal Debit October 02, 2021 Credit Record entry Clear entry View general journal IOI 15 . do 4 5 6 R. T k (due day /] i ournal entry worksheet 5 6 7 2 3 4 co 1 9 10 > Record the acquisition of $1,560,000 of M&D Corporation 4% bonds at face value. ote: Enter debits before credits. General Journal Debit Credit Date November 01, 2021 Record entry Clear entry View general journal W FM IDI id - - 4 % 5 & 7 8 9 R Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general journal ch 5 IOI Il % 5 6 7 00 9 R Saved mework [due day 7] Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 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 ch O BE IDI All 4 % 5 & 00 9 to Babylist B Hotel Hyatt House... Login - Sofi Saved work [due day 7] 0 Journal entry worksheet ]00 o@ do 144 5 & 7 C 8 9 Vorkoue day Saved $ Net income Statement of comprehensive income: 0 Other comprehensive income: 0 Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets $ 0 Shareholders' Equity