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 Acquired Distribution Transformers Corporation common stock for $560,000. Sep. 1 Acquired $1,149,880 of American Instruments' common stock. Sep. 30 Received a $16,888 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $601,088. Nov. 1 Purchased $1,560.ee of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock $1,074,880 $1,637.688 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 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. $ 16,800 52.000 68,800 $ Income statement: Dividend revenue Gain on investments Net income Statement of comprehensive income: Net income Other comprehensive income Comprehensive income Balance sheet Assets Current Assets $ 88,800 $ 68,800 Noncurrent Assets Investments in equity securities Add: Fair value adjustment Shareholders' Equity Retained earnings $2,700,000 11,000 $2.711,000 $ 68,800 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.) No Date General Journal Credit Debit 560.000 1 March 31, 2021 Investment in equity securities Cash 0 560.000 2 1,140,000 September 01, 20. Investment in equity securities Cash 0 0 1,140,000 September 30, 20 Cash 16.800 0 0 Dividend revenue 16.800 41.000 October 02. 2021 Fair value adjustment Gain on investments (unrealized, NI) 41.000 5 October 02, 2021 Cash 801.000 0 Investment in equity securities Fair value adjustment 560.000 41.000 November 01, 202 Investment in equity securities 1,560,000 0 0 Cash 1.560.000 December 31, 202 Fair value adjustment 0 11,000 Gain on investments (NI) 11.000