The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental's fiscal year ends on December 31. No Investments were held by Omamental on December 31, 2020 Mar. 31 Acquired 7% Distribution Transformers Corporation bonds costing $520,000 at face value. Sep. 1 Acquired $1,800,000 of American Instruments 9 bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $557,000. Nov. 1 Purchased $1,500,000 of MD Corporation 5% 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 A Corporation bonds (Hint interest must be accrued) Required: $1,018,000 $1,640,000 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. Indicate any amounts that Omamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these Investments. Include totals for net income, comprehensive Income, and retained earnings as a result of these investments Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date March 31, 2021 Investment in bonds Cash General Journal Debit 520,000 Credit 520,000 2 September 01, 20 Investment in bonds Cash 3 September 30, 20 Cash Interest revenue 4 October 02, 2021 Fair value adjustment 5 October 02, 2021 Reclassification adjustment (OCI) 6 October 02, 2021 Gain on investments (NI) 7 November 01, 202 Cash BO December 31, 202 Interest receivable 9 December 31, 202 Interest receivable 10 December 31, 202 Fair value adjustment 1,080,000 1,080,000 Prepare the appropriate journal entry for each transaction or event du For any sales, prepare entries to update the fair-value adjustment, red entry is required for a transaction/event, select "No journal entry requ View transaction list View journal entry worksheet 1 Record the acquisition of 7% Distribution Transformers Corporation bonds costing $520,000 at face value. 2 Record the acquisition of $1,080,000 of American Instruments' 9% bonds at face value. 3 Record the entry for the semiannual interest received on the Distribution Transformers bonds. 4 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. 5 Record the entry for the reclassification adjustment on the date of sale. View transaction list View journal entry worksheet the date of sale. 6 Record the entry for sale of Distribution Transformers bonds for $557,000. Record the acquisition of $1,56m000 of M&D Corporation 5% bonds at face value. 8 Record the interest accrual for American Instruments bonds. 9 Record the interest accrual for M&D bonds. 10 Record the entry to adjust fair value of the investments at year-end. Note: 7 ==== journal entry has been entered November VT, 3034 Cash Complete this question by entering your answers in the tabs below. Required 1 Required 2 Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Net income Statement of comprehensive income: Other comprehensive income Comprehensive income Balance sheet: Current Assets Noncurrent Assets Assets Shareholders' Equity