Answered step by step
Verified Expert Solution
Question
1 Approved Answer
fix my wrong answer, and fill the blanks. then I would give you a good comment.Thank you. Hurry. The following selected transactions relate to investment
fix my wrong answer, and fill the blanks. then I would give you a good comment.Thank you. Hurry.
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $470,000. Sep. 1 Acquired $1,005,000 of American Instruments' common stock. Sep. 30 Received a $14, 100 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $502,000. Nov. 1 Purchased $1,470,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock $ 948,000 $1,537,000 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 12/31/2021 balance sheet as a result of these investments. Include totals for net income, Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessa year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 March 31, 2021 x 470,000 Gain on investments (NI) Cash 470,000 2 September 01, 20 Investment in bonds X 1,005,000 Cash 1,005,000 3 September 30, 20. Cash 14,100 Gain on investments (NI) 14,100 2 September 01, 20 Investment in bonds x 1,005,000 Cash 1,005,000 3 September 30, 20 Cash 14,100 Gain on investments (NI) x 14,100 4 502,000 X October 02, 2021 Cash Investment in bonds Gain on investments (NI) 470,000 X 32,000 5 October 02, 2021 No Transaction Recorded 6 November 01, 202 No Transaction Recorded Income statement: $ 40,900 32,000 72,900 $ Gain on investments Gain on investments Net income Statement of comprehensive income: Net income Other comprehensive income Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets $ 0 Shareholders' EquityStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started