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 $400,000 at face value.
Sep.		1		Acquired $900,000 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 $425,000.
Nov.		1		Purchased $1,400,000 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	$	850,000
M&D Corporation bonds	$	1,460,000

(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.) General Journal No Date Debit Credit March 31, 2018 Investment in Distribution Transformers bonds 400,000 Cash 400,000 September 01, 201 Investment in American Instruments bonds 900,000 2 Cash 900,000 September 30, 201 Cash 3 16,000 Interest revenue 16,000 October 02, 2018 Fair value adjustment 425,000X 4 Unrealized holding gain-NI 10,000 October 02, 2018 Cash 5 425,000 Investment in Distribution Transformers bonds 400,000 25,000 Fair value adjustment November 01, 201 Investment in M&D Corporation bonds 6 1,400,000 Cash 1,400,000 December 31, 201 Investment revenue 7 60,000 Cash 50,000 December 31, 201 Investment revenue December 31, 201 Fair value adjustment 10,000 Unrealized holding gain-NI 10,000 LC st Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet indicated with a minus sign.) as a result of these investments. (Amounts to be deducted should be Income statement Interest revenue 60,000 Net income S 60,000 Statement of comprehensive income: Net income Other comprehensive income Comprehensive income Balance sheet Assets Current Assets Interest receivable Investments Trading securities Add: Fair value adjustment S 0 Shareholders' Equity Retained earnings