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The following select the transactions relates to investment activities of ornamental insulation corporation during 2021 the company buys Debbie securities intending to profit from short
The following select the transactions relates to investment activities of ornamental insulation corporation during 2021 the company buys Debbie securities intending to profit from short time differences in price in maintaining them in an active trading portfolio Ornametals fiscal year ends December 31 No investments were held by ornamental on December 31,2020
march 31 acquired 8% distribution transporters Corporation Bar is costing $470,000 at face value
September 1 acquired $1,110,000 of American instruments 10% bonds a face value
September 30 received semiannual interest payments on the distribution transporters bonds
October 2 so the distribution of transporters bars for $530,000
November 1 purchase $1,750,000 of M&D corporation 6% bonus a face value
December 31 recording any necessary adjusting entries relating to the investment the market price of the investments are
American instruments bonds $1,067,000
M&D Corporation bonds $1,817,000
1. prepare the appropriate journal entry for each transaction or even during 2021 as well as any adjusting entries necessary at year end
2. indicate any amounts that ornamental insulation will report in 2021 income statement 2021 statement of comprehensive income in December 31, 2021 balance sheet as a result of these investments include totals for net income, comprehensive income in retain earnings as a result of these investments
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