Check my work mode: This shows what is correct or Incorrect for the work you have completed so far. It does 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 $588, ese at face value. Sep. 1 Acquired $1,05e, eve 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 $535, eee. NOV. 1 Purchased $1,5ee, 280 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: American Instruments bonds M&D Corporation bonds $ 990,000 $1,570,000 (Him 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 12/312021 balance sheet as a result of these investments. Include totals for net income, comprehensive Income, and retained earnings as a result of these investments Answer is not complete. Complete this question by entering your answers in the tabs below. What is correct or incorrect for the work you have completed 2 3 September 30, 20 Cash 15,000 Interest revenue o 15.000 4 535.000 % October 02, 2021 Cash Investment in bonds Gain on investments (NI) X X 30 % 500.000 35,000 5 October 02, 2021 Investment in bonds 1.500,000 X X X Cash 1.500.000 @ October 02. 2021 Interest receivable X 28.000 X Interest revenue X 28.000 November 01, 202 Interest receivable 8 10.000 X & Interest revenue 10.000 X X 70,000 X 3 December 31, 202 Investment in bonds Interest revenue 60.000 10.000 X Fair value adjustment Required 2 ) Pre 2 of 5 Next > with a minus sign.) Income statement: Interest revenue S Gain on investments 53,000 35,000 S Net income Statement of comprehensive income 88,000 Other comprehensive income: Reclassification adjustment 10,000 10.000 Comprehensive income Balance sheet: Assets Current Assets Nonourrent Assets 3 Shareholders Equity