The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. 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, 2017.

Mar.		31		Acquired 8% Distribution Transformers Corporation bonds costing $560,000 at face value.
Sep.		1		Acquired $1,380,000 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 $610,000.
Nov.		1		Purchased $2,200,000 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	$	1,336,000
M&D Corporation bonds	$	2,273,000

(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. 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.

Prepare the appropriate journal entry for each transaction or event during 2018, 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.)

No	Date	General Journal	Debit	Credit
1	March 31, 2018	Investment in Distribution Transformers bondsselected answer correct	560,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	560,000selected answer correct
2	September 01, 2018	Investment in American Instruments bondsselected answer correct	1,380,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	1,380,000selected answer correct
3	September 30, 2018	Cashselected answer correct	22,400selected answer correct	not attempted
		Interest revenueselected answer correct	not attempted	22,400selected answer correct
4	October 02, 2018	Fair value adjustmentselected answer correct	79,000selected answer incorrect	not attempted
		Unrealized holding gainNIselected answer correct	not attempted	79,000selected answer incorrect
5	October 02, 2018	Cashselected answer correct	610,000selected answer correct	not attempted
		Investment in Distribution Transformers bondsselected answer correct	not attempted	560,000selected answer correct
		Fair value adjustmentselected answer correct	not attempted	50,000selected answer correct
6	November 01, 2018	Investment in M&D Corporation bondsselected answer correct	2,200,000selected answer correct	not attempted
		Cashselected answer correct	not attempted	2,200,000selected answer correct
7	December 31, 2018	Interest receivableselected answer correct	46,000selected answer correct	not attempted
		Interest revenueselected answer correct	not attempted	46,000selected answer correct
8	December 31, 2018	Interest receivableselected answer correct	22,000selected answer correct	not attempted
		Interest revenueselected answer correct	not attempted	22,000selected answer correct
9	December 31, 2018	Fair value adjustmentselected answer correct	79,000selected answer incorrect	not attempted
		Unrealized holding gainNI	not attempted	50,000