Insulation Corporation during $2024.$ The company buys debt securitles$,$ not

Intending to profit from short$-$term differences in price and not necessarlly to hold

debt securities to maturity, but to have them avallable for sale in years when

circumstances warrant. Ornamental's fiscal year ends on December $31.$ No

Investments were held by Ornamental on December $31,2023.$

March $31$ Acquired $8\%$ Distribution Transformers Corporation bonds costing $$480,000$ at face value.

September $1$ Acquired $$1,020,000$ of American Instruments' $10\%$ bonds at face value.

September $30$ Received semiannual interest payment on the Distribution Transformers bonds.

October $2$ Sold the Distribution Transformers bonds for $$513,000.$

November $1$ Purchased $$1,480,000$ of M&D Corporation $6\%$ bonds at face value.

December $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are:

American

Instruments bonds $$962,000$

M&D Corporation

bonds $1,548,000$

$($HInt: Interest must be accrued.$)$

Required:

Prepare the approprlate journal entry for each transaction or event during

$2024,$ as well as any adjusting entrles necessary at year$-$end. For any sales,

prepare entrles to update the fair$-$value adjustment, record any reclassification

adjustment, and record the sale.

Indicate any amounts that Ornamental Insulation would report in Its $2024$

Income statement, $2024$ statement of comprehensive income, and $12/31/2024$

balance sheet as a result of these investments. Include totals for net Income,

comprehensive income, and retained earnings as a result of these investments.

Ignore Income taxes.