The following selected transactions relate to investment activities of Ornamental 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. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.

Mar.		31		Acquired 8% Distribution Transformers Corporation bonds costing $460,000 at face value.
Sep.		1		Acquired $1,080,000 of American Instruments' 10% bonds at face value.
Sep.		30		Received semiannual interest payment on the Distribution Transformers bonds.
Oct.		2		Sold the Distribution Transformers bonds for $515,000.
Nov.		1		Purchased $1,700,000 of M&D 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	$	1,036,000
M&D Corporation bonds	$	1,766,000

(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 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.

6 1,700,000 November 01, 202 Investment in bonds Cash > > 1,700,000 7 36,000 December 31, 202 Interest receivable Interest revenue 36,000 >> >> 8 17,000 December 31, 202 Interest receivable Interest revenue 17,000 9 > 22,000 December 31, 202 Fair value adjustment Loss on investments (unrealized, OCI) 22,000 Required 1 Required 2 > No General Journal Debit Credit Date March 31, 2021 1 460,000 Investment in bonds Cash >> 460,000 2 1,080,000 September 01, 20. Investment in bonds Cash 1,080,000 >> >> 3 September 30, 20. Cash 18,400 Interest revenue 18,400 4 515,000 October 02, 2021 Cash Investment in bonds Fair value adjustment * * * 460,000 55,000 5 515,000 October 02, 2021 Cash Investment in bonds Gain on investments (unrealized, NI) 460,000 55,000 6 1,700,000 November 01, 202 Investment in bonds Cash 1,700,000 Income statement: Interest revenue Gain on investments S 71,400 55,000 $ 126,400 Net income Statement of comprehensive income: Net income $ 22,000 $ S 22,000 Comprehensive income Balance sheet: Assets Current Assets Interest receivable S 53,000 Investments Investment in bonds Add: Fair value adjustment Shareholders' Equity Other comprehensive income $ 2,802,000 X 55,000 $ 2,857,000 $ 22,000