Complete this question by entering your answers in the tabs below Required 1Required 2 Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to be ded indicated with a minus sign.) ncome statement Interest revenue 57,200 50,000 Gain on sale of investments $ 107,200 Statement of comprehensive income Net income 29,000 Balance sheet Assets Current Assets Interest receivable Investment in American Instruments bonds Investment in M&D Corporation bonds 68,000 1,380,000 2,200,000 Investments Shareholders' Equity Other comprehensive income 29,000 Required 1 Required 2> Problem 12-5 Various transactions related to trading securities [L012-1, 12-3] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. 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, 2017 Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $560,000 at face value. Sep. 1 Acquired $1,380,000 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 $610,000 Nov. 1 Purchased $2,200,000 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 $1,336,000 $2,273,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end. 2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. Complete this question by entering your answers in the tabs below Required 1Required 2 Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to be ded indicated with a minus sign.) ncome statement Interest revenue 57,200 50,000 Gain on sale of investments $ 107,200 Statement of comprehensive income Net income 29,000 Balance sheet Assets Current Assets Interest receivable Investment in American Instruments bonds Investment in M&D Corporation bonds 68,000 1,380,000 2,200,000 Investments Shareholders' Equity Other comprehensive income 29,000 Required 1 Required 2>
