look at screenshot
problem 3 and 4
.url Metro by'TMzob-i'le' as \"28:56 PM 4 (E) \"E estem-hedueationeern Private 3. Award: 20.00 points The following selected transactions rotate 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 signicant inuence on the investee. Ornamental's scal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar-31 Acquired Distribution Transformers Corporation common stock for $590,000. 5'3"- 1Acquired $1,185,000 of American Instruments' common stock. Sen-3 Received a $20,650 dividend on the Distribution Transformers common stock. 0'" 2 Sold the Distribution Transformers common stock for $634,000. \"W 1 Purchased $1,590,000 of mm Corporation common stock. D\" 3' Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $1,116,000 M&D Corporation common stock $1.669.000 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 1213112021 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. 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 lisl Journal entry worksheet (1'234 567 ) Record the acquisition of Distribution Transformers Corporation common stock for $590,000. Note: Enter debits before credits. Record entry Clear entry View general journal .utl Metro by T-Mobile '4? 8:56 PM 4 [1' 4. Award; 20.00 points On January 4, 2021, Runyan Bakery paid $346 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise signicant inuence over Lavery's operations. Runyan received dividends of $2.80 per share on December 15, 2021. and Lavery reported net income of $260 million for the year ended December 31, 2021. The market value of Lavery's common stock at December 31, 2021, was $32 per share. On the purchase date, the book value of Lavery's identiable net assets was $910 million and: a. The fair value of Lavery's depreciable assets, with an average remaining useful life of six years, exceeded their book value by $60 million. h. The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill. Required: 1. Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method. 2. Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in the net assets of Lavery rather than a 30% interest. Complete this question by entering your answers in the tabs below. Required 1 1 Required 2 Prepare all appropriate journal entries related to the investment during 2021, assuming Runyan accounts for this investment by the equity method. (If no entry is required for a transaction/event, select "No journal entry required" in the rst account eld. Enter your answers in millions. (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet (1'23: 5 > Record the purchase of Lavery Labeling stock for $346 million. Note: Enter debits before credits. Record entry Clear entry View general lournal > e [I]
