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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2 0 1 8 . The company buys debt securities , intending
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during The company buys debt securities intending to profit from shortterm differences in price and maintaining them in an active trading portfolio. Ornamentals fiscal year ends on December No investments were held by Ornamental on December Mar. Acquired Distribution Transformers Corporation bonds costing $ at face value. Sep. Acquired $ of American Instruments' bonds at face value. Sep. Received semiannual interest payment on the Distribution Transformers bonds. Oct. Sold the Distribution Transformers bonds for $ Nov. Purchased $ of M&D Corporation bonds at face value. Dec. Recorded any necessary adjusting entrys relating to the investments. The market prices of the investments are: American Instruments bonds $ M&D Corporation bonds $ Hint: Interest must be accrued. Required: Prepare the appropriate journal entry for each transaction or event during as well as any adjusting entries necessary at year end. Indicate any amounts that Ornamental Insulation would report in its income statement, statement of comprehensive income, and balance sheet as a result of these investments.
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during The company buys debt securities intending to profit from shortterm differences in price and maintaining them in an active trading portfolio. Ornamentals fiscal year ends on December No investments were held by Ornamental on December
Mar. Acquired Distribution Transformers Corporation bonds costing $ at face value.
Sep. Acquired $ of American Instruments' bonds at face value.
Sep. Received semiannual interest payment on the Distribution Transformers bonds.
Oct. Sold the Distribution Transformers bonds for $
Nov. Purchased $ of M&D Corporation bonds at face value.
Dec. Recorded any necessary adjusting entrys relating to the investments. The market prices of the investments are:
American Instruments bonds $
M&D Corporation bonds $
Hint: Interest must be accrued.
Required:
Prepare the appropriate journal entry for each transaction or event during as well as any adjusting entries necessary at year end.
Indicate any amounts that Ornamental Insulation would report in its income statement, statement of comprehensive income, and balance sheet as a result of these investments.
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