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Problem 12-5 (Algo) Various transactions related to trading securities (L012-1, 12-3) The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021.

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Problem 12-5 (Algo) Various transactions related to trading securities (L012-1, 12-3) The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021. The company buys debt securities, intending to profit 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 1 Distribution Transformers Corporation bonds conting $530,000 at face value. . 1 Aequired $1,290,000 of American Instruments: 10bonds at tace value. Sep. 30 Received seniannual interest payment on the Distribution Transformers bonds. Oot. 2 sold the Distribution Transformers bonds for $565,000 Nov. 1 Turchased $2,050,000 of MD Corporation #bonds at face value Doc. Recorded any necessary adjusting entry() relating to the investments. The market prices of the investments are American Instrument bonds RID Corporation bonds $1,243,000 $2,123,000 (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. Indicato any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive Income, and 12/312021 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. (una entry is required for a transaction/event, select "No journal entry required in the first account hield.) 530,000 1 March 31, 2021 Investment in bonds 530,000 Cash 1.290,000 2 September 01, 2021 Investment in bonds 1.290.000 Cash 3 September 30, 2021 Cash Interest revenue 4 October 02,2021 Fair value adjustment Gain on investments (unrealized, NI) 565,000 5 October 02, 2021 Cash Investment in bonds Fair value adjustment 6 November 01, 2021 Investment in bonds 2,050,000 2,050,000 Cash 7 December 31. 2021 Interest receivable Interest revenue 8 December 31, 2021 Interest receivable Interest revenue 9 December 31 2021 Fair value adjustment

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