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The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences

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The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio Omamental's fiscal year ends on December 31. No Investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired ex Distribution Transformers Corporation bonds costing $400,000 at face value. Sep. 1 Acquired $900,000 of Anerican Instruments 10% bonds at face value Sep. 3 Received seniannual Interest payment on the Distribution Transformers bonds Oct. 2 Sold the Distribution Transformers bonds for $425,000 Nov. 1 Purchased $1,400,ce of MSD Corporation 6 bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are American Instruments bonds MSD Corporation bonds $ 850, $1,450,000 (Hint Interest must be accrued.) 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 12/312021 balance sheet as a result of these investments include toals for net income, comprehensive income, and retained eamings as a result of these investments Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year and (If no entry is required for a transaction event se ect No journal entry required in the first account field.) Complete this question by entering your answers in the tabs below 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.) view transaction tot View transaction at Record the acquisition of 8% Distribution Transformers Corporation bonds costing $400,000 at face value. Record the acquisition of $900,000 of American Instruments' 10% bonds at face value. Record the entry for the semiannual interest receive the Distribution Transformers bonds. Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Record the entry for sale of Distribution Transformers bonds for $425,000. Note: - journal entry has been entered Record entry Charly View journal Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. 5 Record the entry for sale of Distribution Transformers bonds for $425,000. Record the acquisition of $1,400,000 of M&D Corporation 6% bonds at face value. Irm Cre 7 Record the interest ad " bonds. for American Instruments 8 Record the interest accrual for M&D bonds. 9 Record the entry for Fair-value adjustment. Note : = journal entry has been entered Facord entry Ce entry Vlen gel

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