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Insulation Corporation during 2 0 2 4 . The company buys debt securitles , not Intending to profit from short - term differences in price
Insulation Corporation during The company buys debt securitles not Intending to profit from shortterm 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 No Investments were held by Ornamental on December March Acquired Distribution Transformers Corporation bonds costing $ at face value. September Acquired $ of American Instruments' bonds at face value. September Received semiannual interest payment on the Distribution Transformers bonds. October Sold the Distribution Transformers bonds for $ November Purchased $ of M&D Corporation bonds at face value. December Recorded any necessary adjusting entrys relating to the investments. The market prices of the investments are: American Instruments bonds $ M&D Corporation bonds HInt: Interest must be accrued. Required: Prepare the approprlate journal entry for each transaction or event during as well as any adjusting entrles necessary at yearend. For any sales, prepare entrles to update the fairvalue adjustment, record any reclassification adjustment, and record the sale. Indicate any amounts that Ornamental Insulation would report in Its Income statement, statement of comprehensive income, and 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.
Insulation Corporation during The company buys debt securitles not
Intending to profit from shortterm 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 No
Investments were held by Ornamental on December
March Acquired Distribution Transformers Corporation bonds costing $ at face value.
September Acquired $ of American Instruments' bonds at face value.
September Received semiannual interest payment on the Distribution Transformers bonds.
October Sold the Distribution Transformers bonds for $
November Purchased $ of M&D Corporation bonds at face value.
December Recorded any necessary adjusting entrys relating to the investments. The market prices of the investments are:
American
Instruments bonds $
M&D Corporation
bonds
HInt: Interest must be accrued.
Required:
Prepare the approprlate journal entry for each transaction or event during
as well as any adjusting entrles necessary at yearend. For any sales,
prepare entrles to update the fairvalue adjustment, record any reclassification
adjustment, and record the sale.
Indicate any amounts that Ornamental Insulation would report in Its
Income statement, statement of comprehensive income, and
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.
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