Problem 12-5 Various transactions related to trading securities [LO12-1, 12-3] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. 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, 2017 Mar. 31 Acquired 88 Distribution Transforners Corporation bonds costing $530,000 at face value. Sep. l Acquired $1,290,000 of American Instrunents' 10t bonds at face value. Sep. 30 Received seniannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transforners bonds for $565,000 Nov. 1 Purchased $2,050,000 of H&D Corporation 68 bonds at face value. Dec. 31 Recorded any necessary adjusting entry(a) relating to the investments. The market prices of the inveatnents aze: American Instrunents bonds M&D 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 2018, as well as any adjusting entries necessary at year end. 2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments 8. 9 6 2 Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018. arwell as any adjusting entries necessary at year (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $530,000 at face value. Note: Enter debits before credits. Date General Journal Debit Credit March 31, 2018 KPre 10 of 15 E Next > Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries n (If no entry is required for a transaction/event, select"No journal entry required" in the first account field.) ecessary at yeare View transaction list Journal entry worksheet 4 6 7 9 Record the acquisition of $1,290,000 of American Instruments' 10% bonds at face value. Note: Enter debits before credits. Debit Credit Date General Journal September 01, 2018 Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, 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 first account field.) View transaction list Journal entry worksheet Record the entry for the semiannual interest received on the Distribution Transformers bonds. Note: Enter debits before credits Debit Credit General Journal Date September 30, 2018 Next K Prev 10 of 15 Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry required i th first account field.) View transaction list Journal entry worksheet Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Debit Credit Date October 02, 2018 K Prey 10 of 15 Next Required 1Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, s well as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry requ e first account field.) View transaction list Journal entry worksheet Record the entry for sale of Distribution Transformers bonds for $565,000. Note: Enter debits before credits Date General Journal Debit Credit October 02, 2018 K Prev 10 of 15 Next Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, 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 first account field.) View transaction list Journal entry worksheet es Record the acquisition of $2,050,000 of M&D Corporation 6% bonds at face value. Note: Enter debits before credits. General Journal Debit Date November 01, 2018 K Prey 10 of 15 Next es n the tabs below. Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, 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 first account field.) View transaction list Journal entry worksheet es Record the interest accrual for American Instruments bonds Note: Enter debits before credits. Debit General Journal Date December 31, 2018 Next > KPrey 10 of 15 Required1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as wcl as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry required" in account field.) View transaction list Journal entry worksheet 9 Record the interest accrual for M&D bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, 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 e first account field.) View transaction list Journal entry worksheet Record the entry for Fair-value adjustment. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2018 KPrev 10 of 15 Next Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amo tsbe deducted should be indicated with a minus sign.) Income statement Statement of comprehensive income es Balance sheet Assets Current Assets Shareholders Equity