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 Ornamental's 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,eee at face value. Sep. 1 Acquired $90e . eee of American Instruments, 10% bonds at face value. sep. 3e Received semiannual interest payment on the Distribution Transformers bonds. oct. 2 Sold the Distribution Transforners bonds for $425,0. 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 85e,0 M&D Corporation bonds $1,460,880 (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. 4 October 02, 2018 Gain on sale of investments 25,000 Gain on sale of investments 25,000 5 October 02, 2018 Gain on sale of investments 3 25,000 Gain on sale of investments 25,000 6 November 01, 201 Investment in M&D Corporation bonds 011,400,000 Cash 1,400,000 7December 31, 201 Interest receivable 44,000 Interest revenue 44,000 8 December 31, 201 Fair value adjustment Unrealized holding gain-oCI 9 December 31, 201 Fair value adjustment 9 December 31, 201 value Investment in M&D Corporation bonds