The following selected transactions relate to investment activities of Ornamental Insulation Corporation during $2024.$ 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 Ornamental on December $31,2023.$

March $31$ Acquired $8\%$ Distribution Transformers Corporation bonds costing $$570,000$ at face value.

September $1$ Acquired $$1,155,000$ of American Instruments' $10\%$ bonds at face value.

September $30$ Received semiannual interest payment on the Distribution Transformers bonds.

$0$ctober $2$ Sold the Distribution Transformers bonds for $$612,000.$

November $1$ Purchased $$1,570,000$ of M&D Corporation $6\%$ bonds at face value.

December $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are:

American Instruments $,$:$1,088,000$

M&D Corporation bonds

$($Hint: Interest must be accrued.$)$

Required:

Prepare the appropriate journal entry for each transaction or event during $2024,$ 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.

Indicate any amounts that Ornamental Insulation would report in its $2024$ income statement, $2024$ statement of

comprehensive income, and $12/31/2024$ balance sheet as a result of these investments. Include totals for net income,

comprehensive income, and retained earnings as a result of these investments. Ignore income taxes.

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare the appropriate journal entry for each transaction or event during $2024,$ 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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheetThe following selected transactions relate to investment activities of Ornamental Insulation Corporation during $2024.$ 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 Ornamental on December $31,2023.$

March $31$ Acquired $8\%$ Distribution Transformers Corporation bonds costing $$570,000$ at face value.

September $1$ Acquired $$1,155,000$ of American Instruments$10\%$ bonds at face value.

September $30$ Received semiannual interest payment on the Distribution Transformers bonds.

October $2$ Sold the Distribution Transformers bonds for $$612,000.$

November $1$ Purchased $$1,570,000$ of M&D Corporation $6\%$ bonds at face value.

December $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are:

American Instruments bonds $ $1,088,000$

M&D Corporation bonds $ $1,649,000$

$($Hint: Interest must be accrued.$)$

Required:

Prepare the appropriate journal entry for each transaction or event during $2024,$ 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.

Indicate any amounts that Ornamental Insulation would report in its $2024$ income statement, $2024$ statement of comprehensive income, and $12/31/2024$ balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. Ignore income taxes.