Intermediate Accounting Chapter 12 Homework. I left the screenshots there. It's quite hard and needed help with it. Please let me know if you can or can't. Thank you so much for your time.
Problem 12-5 Various transactions related to securities available-for-sale [L012-3] The following selected transactions relate to investment activities of Ornamental Insulation Corporation. The company buys securities, not intending to prot from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale when circumstances warrant. Ornamental's scal year ends on December 31. No investments were held by Ornamental on December 31, 2015. 2016 Feb. 21 Acquired Distribution Transformers Corporation common shares costing $480,000. Mar. 18 Received cash dividends of $7,500 on the investment in Distribution Transformers common shares. Sep. 1 Acquired $1,140,000 of American Instruments' 10% bonds at face value. Oct. 20 Sold the Distribution Transformers shares for $545,000. Nov. 1 Purchased M&D Corporation common shares costing $1,800,000. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments bonds $1,098,000 M&D Corporation shares $1,868,000 (Hint: Interest must be accrued for the American Instruments' bonds.) 2017 Jan. 20 Sold the M&D Corporation shares for $1 93,000. Mar. 1 Received semiannual interest of $57,000 on the investment in American Instruments bonds. Aug. 12 Acquired Vast Communication common shares costing $730,000. Sept. 1 Received semiannual interest of $57,000 on the investment in American Instruments bonds. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: Vast Communication shares $ 750,000 American Instruments bonds $1,078,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2016. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the acquisition of Distribution Transformers Corporation shares costing $480,000. Note: Enter debits before credits. Clear entry View general journal 2. Indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) 2. Indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Statement of comprehensive income: Balance sheet: Current Assets Investments Shareholders' Equity Accumulated other comprehensive income 3. Prepare the appropriate journal entry for each transaction or event during 2017. (If no entry is required for a transactionlevent, select "No journal entry required" in the first account field.) View transaction list 3. Prepare the appropriate journal entry for each transaction or event during 2017. (If no entry is required for a transactionlevent, select "No journal entry required'I in the first account field.) View transaction list Journal entry worksheet Record the sale of M&D Corporation shares for $1,893,000. \\lote: Enter debits before credits. January 20, 2017 Record entry Clear entry View general journal 4. Indicate any amounts that Ornamental Insulation would report in its 2017 balance sheet and income statement as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Statement of comprehensive income: _ Accumulated other comprehensive income Shareholders' Equity _
