{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-28T05:04:10-04:00", "answer_date": "2024-05-28 05:04:10", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1819732", "url": "\/study-help\/questions\/the-following-selected-transactions-relate-to-investment-activities-of-ornamental-1819732", "question_creation_date_js": "2024-05-28T05:04:10-04:00", "question_creation_date": "May 28, 2024 05:04 AM", "meta_title": "[Solved] The following selected transactions relat | SolutionInn", "meta_description": "Answer of - The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. | SolutionInn", "meta_keywords": "selected,transactions,relate,investment,activities,ornamental,insulation,corporation,2021,company,buys,debt", "question_title_h1": " The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from", "question_title": " The following selected transactions relate to investment activities of Ornamental Insulation", "question_title_for_js_snippet": "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 end on December 31 No investments were held by Ornamental on December 31, 2020 Mar 31 Acquired 7 Distribution Transformers Corporation bonds costing $590,000 at face value Sep 1 Acquired $1,185,000 of American Instruments' 8 bonds at face value Sep 30 Received semiannual interest payment on the Distribution Transformers bonds Oct 2 Sold the Distribution Transformers bonds for $634,000 Nov 1 Purchased $1,590,000 of M D Corporation 58 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 M D Corporation bonds (Hint Interest must be accrued ) Required $1,116,000 $1,669,000 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 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 Complete this question by entering your answers in the tabs below ", "question_description": "\"image", "transcribed_text": "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 end on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 7 Distribution Transformers Corporation bonds costing $590,000 at face value. Sep. 1 Acquired $1,185,000 of American Instruments' 8 bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $634,000. Nov. 1 Purchased $1,590,000 of M&D Corporation 58 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 M&D Corporation bonds (Hint: Interest must be accrued.) Required: $1,116,000 $1,669,000 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 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. Complete this question by entering your answers in the tabs below.", "related_book": { "title": "Accounting", "isbn": "978-0324662962", "edition": "23rd Edition", "authors": "Jonathan E. Duchac, James M. Reeve, Carl S. Warren", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/46.jpg", "uri": "\/textbooks\/accounting-23rd-edition-46", "see_more_uri": "" }, "free_related_book": { "isbn": "1977837158", "uri": "\/textbooks\/the-great-insurance-scam-a-practical-guide-for-americans-to-save-money-on-insurance-while-protecting-their-family-s-financial-future-1st-edition-978-1977837158-191764", "name": "The Great Insurance Scam A Practical Guide For Americans To Save Money On Insurance While Protecting Their Family S Financial Future", "edition": "1st Edition" }, "question_posted": "2024-05-28 05:04:10", "see_more_questions_link": "\/study-help\/questions\/business-management-leadership-2023-June-05", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/prepare-journal-entries-to-record-the-following-grantrelated-transactions-of", "description": "Prepare journal entries to record the following grant-related transactions of an enterprise fund activity. 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