The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021 The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity. but to have them available for sale in years when circumstances warrant. Omamental's fiscal year ends on December 31. No investments were held by Omamental on December 31, 2020 Mar. 31 acquired ex Distribution Transformers Corporation bonds costing $570,at face value. Sep. 1 Acquired 11,155,000 of American Instruments 10% bonds at face value Sap. 3 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transferers bonds for $612,000. New, 1 Purchased $1,570,000 of HSD Corporation & bands at face valve Dec. Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investnents are: American Instruments bonds MD Corporation bonds $1,ess,000 51.649, ne (Hint interest must be accrued.) Required: 1. Prepare the appropriate joumal entry for each transaction or event during 2021 as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the falr-value adjustment record any reclassification adjustment and record the sale 2 Indicate any amounts that Omamental insulation would report in its 2021 Income statement, 2021 statement of comprehensive Income, and 12/31/2021 balance sheet os a result of these investments. Include totals for net income.comprehensive income, and retained earnings as a result of these investments Required 1 Required 2 Prepare the appropriate journal entry for each transaction of event during 2021. s well as any dating entries necessary year and For any sales, prepare entries te update the fair value adjustment record any reclassification adjustment and record the sale (une entry is required for a transaction/event, select "No journal entry required the first account) View bransaction 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. Date General Journal Debit Credit October 02. 2021 Record entry Clear entsy View general journal Journal entry worksheet Record the entry for the reclassification adjustment on the date of sale. Note: Enter debits before credits. General Journal Debit Credit Date October 02, 2021 Record entry Clear entry View general journal Journal entry worksheet Record the entry for sale of Distribution Transformers bonds for $612,000. Note: Enter debits before credits General Journal Date October 02, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the acquistion of $1,570,000 of M&D Corporation 6% bonds at face value. Note Enter debits before credits General Journal Debit Credit Date November 01 2021 Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 7 8 9 10 Record the interest accrual for American Instruments bonds. Note Enter debits before credits General Journal Debit Credit Date December 31 2021 Record entry Clear entry View general journal Journal entry worksheet
