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The following selected transactions relate to investment activities of Omamental insulation Corporation during 2024. The company buys debt securities, intending to profit from shortterm differences
The following selected transactions relate to investment activities of Omamental insulation Corporation during 2024. The company buys debt securities, intending to profit from shortterm 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, 2023. Hanch 31 Acquired BN DIstribution Teansformers Corporation bands cost ing 1420, C00 at face value. 5eptenber 1 Acquired $960,000 of American Instrinents lox bonds at fore foldue. September 30 Recelved semlannuil laterest payment on the plstribution Transforners bands. Cctober 2 sold the Distribution Trans forners bonds for 3455 , eop. Decenber 32 Recorded any necessary adjusting entry(s) peiafing to the investatents. The market prices of the Investments are inericen Instruments bonds 5 912,000 Moo corpocation bonds 51,562,0co (Hint interest must be accrued) Required: 1. Prepare the appropriate joumal entry for each transaction or event during 2024 , as well as any adjusting entries necessary at year end 2. Indicate any amounts that Omamental insulation would report in its 2024 income atatement, 2024 statement of comprehensive income, and 1281/2024 balance sheet as a result of these investments, include totals for net income, comprehensive income. and retained earnings as a result of these investments lgnore income taxes
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