Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i only need help with second requirement. thanks The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys
i only need help with second requirement. thanks
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Omamental's investments are large enough to exert significant influence on the investee. Omamental's 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 $450,000 Sep. Acquired $975,000 of American Instruments' con stock Sep 30 Received a $18,000 dividend on the Distribution Transformers con stock Oct 2 Sold the Distribution Transformers Con stock for $450,000 Nov 1 Purchased $1,450,000 of HD Corporation common stock Dec.31 Recorded any necessary adjusting entry() relating to the investments. The market prices of the investments are American Instruments comme stock MRD Corporation common stock $920,000 $1,515,000 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 12/312021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments Step 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