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 portfolic 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 $440,000 at face value. Sep. 1 Acquired $1,020,000 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 $485,000 Nov. 1 Purchased $1,600,000 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 M&D Corporation bonds 974,000 $1,664,000 (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 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 Required 1Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Date General Journal Debit Credit March 31 2018 440,000 Investment in Distribution Transformers bonds Cash 40,000 September 01 2018 1,020,000 Investment in American Instruments bonds Cash 1,020,000 September 30 2018 17,6000 Cash Interest revenue 17,600 October 02 2018 45.0000 4 Fair value adjustment Unrealized holding gain-NI 45,000 October 02 2018 485,000 Cash 40,000 45,000 Investment in Distribution Transformers bonds Fair value adjustment November 01 2018 1,600,000 Investment in M&D Corporation bonds Cash | 1.600,000 December 31 2018 34.0000 Interest receivable Interest revenue 34,000 December 31 2018 16,000 Interest receivable Interest revenue 16,000 December 31 2018 Fair value adjustment 18,000 Unrealized holding gain-NI 18,000 Required 1 Required 2> Required 1Required 2 ndicate any amounts that Ornamental insulation would report in its 2018 income statement, 2018 s comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to indicated with a minus sign.) Income statement: Interest revenue $ 67,600 Gain on trading securities Net income $ 67,600 tatement of comprehensive income Net income Other comprehensive income Comprehensive income Balance sheet Assets Current Assets Interest receivable Investments Trading securities - amortized cost Add: Fair value adjustment 18,000 18,000 Shareholders' Equity Retained earnings
