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 $$490,000$ at face value.

Sep. $1$ Acquired $$1,170,000$ of American Instruments' $10\%$ bonds at face value.

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

Oct. $2$ Sold the Distribution Transformers bonds for $$560,000.$

Nov. $1$ Purchased $$1,850,000$ 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 $ $1,129,000$

M&D Corporation bonds $ $1,919,000$

$($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.