Look at screen shot for problem 1 and 2
.nl Metre hyT ' 1_ Award: 20.00 points The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to prot from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar-31 Acquired 8% Distribution Transformers Corporation bonds costing $500,000 at face value. S'P- 'Acquired $1,200,000 of American Instruments' 10% bonds at face value. 59"- 3\" Received semiannual interest payment on the Distribution Transformers bonds. 0\" 2Sold the Distribution Transformers bonds for $575,000. \"W 1 Purchased $1,900,000 of M&D Corporation 6% bonds at face value. D\" 3' Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American instruments bonds $1,160,000 use Corporation bonds $1,970,000 (Hint: Interest must be accrued.) 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 12312021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Complete this question by entering your answers in the tabs below. I Requlred 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, 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 rst account eld.) View transaction Ilsl Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $500,000 at face value. Note: Enter debits before credits. Record entry Clear entry View general journal all Metre byTMe g tee-ea pm 4 (:1. ii' aziamhadueatianaam Private 2 ' Award: 20.00 points The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt 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 in years when circumstances warrant. Ornamental's scal year ends on December 31. N0 investments were held by Ornamental on December 31, 2020. \"a" 3' Acquired 6% Distribution Transformers Corporation bonds costing $580,000 at face value. 59\" 1 Acquired $1,170,000 of American Instruments\" 8% bonds at face value. SBP- 3\" Received semiannual interest payment on the Distribution Transformers bonds. 0\" 2 Sold the Distribution Transformers bonds for $623,000. \"D\" 1 Purchased $1,590,000 of M&D Corporation 4% bonds at face value. 09 3' Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American instruments bonds 51.102000 M&D Corporation bonds $1,670,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12f31l2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. 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 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassication adjustment, and record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld.) View transaction Ilsl Journal entry worksheet (1'2 3 4 5 6 7 a 910 ) Record the acquisition of 6% Distribution Transfon'ners Corporation bonds costing $580,000 at face vaiue. Note: Enter debits before credits. Record entry Clear entry View general journal
