Question
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamentals investments
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.
Mar. | 31 | Acquired Distribution Transformers Corporation common stock for $460,000. | ||
Sep. | 1 | Acquired $990,000 of American Instruments' common stock. | ||
Sep. | 30 | Received a $13,800 dividend on the Distribution Transformers common stock. | ||
Oct. | 2 | Sold the Distribution Transformers common stock for $491,000. | ||
Nov. | 1 | Purchased $1,440,000 of M&D Corporation common stock. | ||
Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
American Instruments common stock | $ | 934,000 | |
M&D Corporation common stock | $ | 1,526,000 | |
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. I just need help completing this portion
Income statement: Dividend revenue 13,800 30,000 Unrealized holding gain on investments held Net income 43,800 Statement of comprehensive income: $ Net income 74,800 Other comprehensive income Balance sheet: Assets Current Assets $ Equity investments 2,430,000 Add: Fair value adjustment 30,000 2,460,000 Shareholders' Equity Retained earningsStep by Step Solution
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