(Note: This problem is a variation of P 12-5, modified to categorize the investments as securities available-for-sale.) P 12-6 Various transactions related to securities available-for-sale LO12-1, L012-4 The following selected transactions relale to investmenl activities of Ornamental Insulation Corporation during 2018. The company buys debl securities, not intending to profit from shorl-lerm difTerences in price and not necessarily to hold debt securities to maturity, but to have them available for sale when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017 Mar. 31 Sep. 1 Sep. 30 Oct. 2 Nov. 1 Dec. 31 Acquired 8% Distribution Transformers Corporation bonds costing $400,000 at face value. Acquired $900,000 of American Instruments, 10% bonds at face value. Received semiannual interest payment on the Distribution Transformers bonds Sold the Distribution Transformers bonds for $425,000 Purchased $1,400,000 of M&D Corporation 6% bonds costing at face value Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds M&D Corporation bonds (Hint: Interest must be accrued.) 850,000 $1,460,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary al 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 2018 income statement, 2018 statement of comprehensive income. and 1231/2018 balance sheet as a result of these investments