The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. 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 when circumstances warrant. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Mar.		31		Acquired 6% Distribution Transformers Corporation bonds costing $470,000 at face value.
Sep.		1		Acquired $1,005,000 of American Instruments 8% bonds at face value.
Sep.		30		Received semiannual interest payment on the Distribution Transformers bonds.
Oct.		2		Sold the Distribution Transformers bonds for $502,000.
Nov.		1		Purchased $1,470,000 of M&D Corporation 4% bonds costing 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	$	948,000
M&D Corporation bonds	$	1,537,000

(Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, 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. 2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.)

Income statement:
Interest revenue		$40,900
Gain on sale of investments		32,000
		$72,900
Statement of comprehensive income:
Net loss		$265,000
Fair value adjustment
		0
Fair value adjustment
Balance sheet:
Assets
Current Assets
Investment revenue		$26,800
Investments
Premium on bond investment	$2,475,000
Deduct: Fair value adjustment	(265,000)	$2,210,000
Shareholders Equity
Accumulated other comprehensive income