Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income [LO12-5) The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental's Investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Aequired Distribution Transformers Corporation common stock for $510,000. Sep. 1 Acquired $1,065,000 of American Instruments' common stock. Sep. 30 Received a $20.400 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $546,000. Nov. 1 Purchased $1,510,000 of HSD Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(o) relating to the investments. The market prices of the investments are: American Instruments common stock HSD Corporation common stock $1,004,000 $1,581.000 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 12/31/2021 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.). 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 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. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) nces View transaction list 1 Record the acquisition of Distribution Transformers Corporation common stock for $510,000. ion stock 2 Record the acquisition of $1,065,000 of American Instruments' common stock. 3 Record the entry for dividend received on the Distribution Transformers common stock. Credit 4 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Drew 10 n 16 :: Next > 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list ences 3 Record the entry for dividend received on the Distribution Transformers common stock. ion stock 4 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. 5 Record the entry for sale Distribution Transformers common stock for $546,000. Credit 6 Record the acquisition of $1,510,000 of M&D Corporation common stock 7 Record the entry to adjust fair value of the investments at year-end. Note : = journal entry has been entered Record entry clear entre View general lournal Required 1 Required 2 Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Income statement: rint Net income Statement of comprehensive income: rences Other comprehensive income Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets Shareholders' Equity
