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 necessarify to hold debt securities to maturity. but to have them avaliable for sale in years when circumstances warrant. Omamental's fiscal year ends on December 31 . No investments were held by Ornamental on December 31,2023. Wareh 31 Anquired 44 ofitiftution Trantormorn Corporation bonde conting \$490,000 at face valve. Septenber 1 Aequired $1,020,000 of Aneriean Instruments. 10t boeds at face volve. Oetober 2 sold the Dinteibution Transtorners bonds for $13,000. Novenber 1 Purchased $1,440,000 of M6D Corperation 68 bonds at face velue. Ameriean fostruhehts bohds Mab Corporation bonds 5,962,000 $1,548,000 (Hint interest must be accrued) 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 updote the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. 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. Prepare the appropriate joumal 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 adjustiment, and record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account feld. Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $490,000 at face value. Note: froter debits tefore credits. 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 necessarify to hold debt securities to maturity. but to have them avaliable for sale in years when circumstances warrant. Omamental's fiscal year ends on December 31 . No investments were held by Ornamental on December 31,2023. Wareh 31 Anquired 44 ofitiftution Trantormorn Corporation bonde conting \$490,000 at face valve. Septenber 1 Aequired $1,020,000 of Aneriean Instruments. 10t boeds at face volve. Oetober 2 sold the Dinteibution Transtorners bonds for $13,000. Novenber 1 Purchased $1,440,000 of M6D Corperation 68 bonds at face velue. Ameriean fostruhehts bohds Mab Corporation bonds 5,962,000 $1,548,000 (Hint interest must be accrued) 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 updote the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. 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. Prepare the appropriate joumal 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 adjustiment, and record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account feld. Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $490,000 at face value. Note: froter debits tefore credits
