The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2024 . 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 avallable for sale in years when circumstances warrant. Ornamental's fiscal year ends on December 31 . No investments were held by Ornamental on December 31, 2023. March 31 Acquired 5V Distribution Transformers Corporation bonds costing $600,000 at face value. September 1 Acquired $1,200,000 of American Instruments' 78 bonds at face value. September 30 Received semiannual interest payment on the Distribution Transformers bonds. october 2 Sold the Distribution Transformers bonds for $645,000. November 1 Purchased $1,600,000 of MSD Corporation 34 bonds at face value. Decenber 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are AmericanInstrumentsbondsMsoCorporationbonds$1,130,000$1,680,000 (Hint Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024 , as well as any adjusting entries necessary at year-end. For any sales, prepare entries to update the fair-value adjustment, record any reciassification adjustment, and record the sale. 2. Indicate any amounts that Ornamental Insulation would report in its 2024 income statement, 2024 statement of comprehensive income, and 12/31/2024 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Ignore income taxes. Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry for each transaction or event during 2024 , as well as any adjusting entries necessary at year-end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the cale. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year-end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. \begin{tabular}{|c|c|c|c|c|c|} \hline 5 & October 02, 2024 & Reclassification adjusiment (UCI) & & & \\ \hline & & Fair value adjustment & () & & 45,000 \\ \hline 6 & October 02, 2024 & Cash & 2 & 645,000 & \\ \hline & & Investment in bonds & 2 & & 600,000 \\ \hline & & Gain on investments (NI) & 0 & & 45,000 \\ \hline 7 & November 01,202 & Investment in bonds & 0 & 1,600,000 & \\ \hline & & Cash & 0 & & 1,600,000 \\ \hline 8 & December 31,202 & Interest receivable & 0 & 42,000 & \\ \hline & & Interest revenue & 0 & & 42,000 \\ \hline 9 & December 31,202 & Interest receivable & 0 & 24,000 & \\ \hline & & Interest revenue & 0 & & 24,000x \\ \hline 10 & December 31,202 & Fair value adjustment & 0 & 10,000 & \\ \hline & & Gain on investments (unrealized, OCl ) & 0 & & 10,000 \\ \hline \end{tabular} Pegmireat 1 Required 2 Indicate any amounts that Ornamental Insulation would report in its 2024 income statement, 2024 statement of comprehensive income, and 12/31/2024 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Ignore income taxes. Note: Amounts to be deducted should be indicated with a minus sign
