The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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 in years when circumstances warrant Ornamental's fiscal year ends on December 31. No Investments were held by Omamental on December 31, 2020. Mar. 31 Acquired 84 Distribution Transformers Corporation bonds costing $570,000 at face value. Sep. 1 Acquired $1,155,000 of American Instruments 104 bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $612,000. Nov. 1 Purchased $1,570,000 of MSD Corporation 64 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 M&D Corporation bonds $1,088,000 $1,649.000 (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. For any sales, prepare entries to update the fall-value adjustment, record any reclassification adjustment, and record the sale. 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 totals for net income, comprehensive income, and retained earnings as a result of these investments. View transaction list Journal entry worksheet 4 5 6 7 10 > Record the acquisition of 8% Distribution Transformers Corporation bonds costing $570,000 at face value. Note: Enter debits before credits Date General Journal March 31, 2021 Investment in bonds Cash Debit Credit 570,000 570,000 Record entry Clear entry View general Journal Prepare the appropriate journal entry for each transaction or event during 2021, 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. (If no entry is required for a transaction/event, select "No journal entry redired in the first account field.) View transaction list Journal entry worksheet 10 > Record the acquisition of $1,155,000 of American Instruments 10% bonds at face value. Note: Enter debits before credits Crede Date September 01 2021 General Journal Investment in bonds Cash 1,155,000 1.155.000 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry for the semiannual Interest received on the Distribution Transformers bonds. Note: Enter debits before credits General Journal Debit Credit Date September 30, 2021 Cash 22,800 Interest revenue 22,800 Record entry Clear entry View general Journal Journal entry worksheet Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Credit Date General Journal October 02, 2021 Cash Investment in bonds Gain on investments (NI) Debit 612,000 570,000 42,000 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the entry for the reclassification adjustment on the date of sale. Note: Enter debits before credits General Journal Debit Credit Date October 02, 2021 Record entry Clear entry View general journal Journal entry worksheet 2 3 5 6 6 7 8 9 10 > Record the entry for sale of Distribution Transformers bonds for $612,000. Note: Enter debits before credits. General Journal Debit Credit Date October 02, 2021 Record entry Clear entry View general journal View transaction list Journal entry worksheet Record the acquisition of $1,570,000 of M&D Corporation 6% bonds at face value. Debit Credit Note: Enter debits before credits Date General Journal November 01, investment in bonds 2021 Cash 1,570,000 1,570,000 Record entry Clear entry View general journal Journal entry worksheet Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. Debit Credit Date December 31 2021 General Journal Interest receivable 54,200 Interest revenue 54,200 Record entry Clear entry View general journal Journal entry worksheet fe Record the interest accrual for M&D bonds. Note: Enter debits before credits Debit Credit Date December 31, 2021 79,000 General Journal Gain on investments (NI) Gain on investments (unrealized, NI) Investment in bonds 12,000 67,000 Record entry Clear entry View general journal Required2 Journal entry worksheet 8 9 10 Record the entry to adjust fair value of the investments at year-end. Note: Enter debits before credits General Journal Debit Credit Date December 31 2021 Required 1 Required 2 Indicate any amounts that Omamental 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. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Interest revenue $ 0 Net income Statement of comprehensive income: Other comprehensive income: 0 Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets 0 Shareholders Equity