The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's 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 $400,ee0. Sep. 1 Acquired $9ee,eee of American Instruments' common stock. Sep. 30 Received a $16,ee0 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $425,e00 Nov. 1 Purchased $1,40e,eee 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 M&D Corporation common stock $ 850,e00 $1,46e,e00 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 Date General Journal Debit Credit March 31, 2018 Investment in Distribution Transformers stock 400,000 Cash 400,000 September 01, 201 Investment in American Instruments stock 900,000 Cash 900,000 September 30, 201 Cash 16,000 Dividend revenue 16,000! 4 October 02, 2018 Fair value adjustment 416,000 Investment in American Instruments stock 416,000 October 02, 2018Cash 425,000 Investment in Distribution Transformers stock 400,000 Gain on sale of investments 25,000 1,400,000 6 November 01, 201 Investment in M&D Corporation stock Cash 1.400.000 7 December 31, 201 Fair value adjustment 10.000 10,000 Unrealized holding gain-NI 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 Dividend revenue 16,000 $ 16,000 Statement of comprehensive income Net income Balance sheet: Assets Current Assets Add: Fair value adjustment Shareholders' Equity The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's 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 $400,ee0. Sep. 1 Acquired $9ee,eee of American Instruments' common stock. Sep. 30 Received a $16,ee0 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $425,e00 Nov. 1 Purchased $1,40e,eee 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 M&D Corporation common stock $ 850,e00 $1,46e,e00 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 Date General Journal Debit Credit March 31, 2018 Investment in Distribution Transformers stock 400,000 Cash 400,000 September 01, 201 Investment in American Instruments stock 900,000 Cash 900,000 September 30, 201 Cash 16,000 Dividend revenue 16,000! 4 October 02, 2018 Fair value adjustment 416,000 Investment in American Instruments stock 416,000 October 02, 2018Cash 425,000 Investment in Distribution Transformers stock 400,000 Gain on sale of investments 25,000 1,400,000 6 November 01, 201 Investment in M&D Corporation stock Cash 1.400.000 7 December 31, 201 Fair value adjustment 10.000 10,000 Unrealized holding gain-NI 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 Dividend revenue 16,000 $ 16,000 Statement of comprehensive income Net income Balance sheet: Assets Current Assets Add: Fair value adjustment Shareholders' Equity
