Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

he following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company uys equity securities as investments. None of Ornamental's investments

image text in transcribed
image text in transcribed
image text in transcribed
he following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company uys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the nvestee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017 Mar. 31 Acquired Distribution Transformers Corporation common stock for $570,00 Sep. 1 Acquired $1,155,000 of American Instruments common stock. Sep. 30 Received a $22,888 dividend on the Distribution Transformers common stock Oct. 2 Sold the Distribution Transformers common stock for $612,80e. Nov. 1 Purchased $1,570,000 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 H&D Corporation common stock $1,888,000 $1,649,080 Required: 1. Prepare the appropriate journal entry for esch tronsaction or event during 2018, as well as any adjusting entries necessary at year end 2. Indicate any amounts that Ormamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12 31/2018 balance sheet as a result of these irtvestments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end (If no entry is required for a transaction/event, select No Journal entry required" in the first account field.) list Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the acquisition of Distribution Transformers Corporation common stock for $570,000. Noter Entar debits before credits Date General Jourmal Debit Credit March 31, 2018 Record entry Clear entry View general journa Required 1 Requi 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. Income statement Statement of comprehensive income Balance sheet Assets Current Assets Shareholders Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Working Papers Volume 1 To Accompany Weygandt Financial And Managerial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

1st Edition

1118233468, 978-1118233467

More Books

Students also viewed these Accounting questions

Question

How are acute, chronic, and latent infections different?

Answered: 1 week ago

Question

=+Does the message include a solution to overcome the guilt?

Answered: 1 week ago

Question

1. Who will you assemble on the team?

Answered: 1 week ago