The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021 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 Omamental on December 31, 2020 Mar. 31 Acquired ex Distribution Transformers Corporation bords costing 5510,000 ut face value. Sep. 1 Acquired $1,230,000 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 5500,000 Nov. 1 Purchased $1,950,000 of Mo Corporation 6 bonds at face value Dec. 31 Recorded any necessary adjusting entry() relating to the investments. The market prices of the investments are American Instruments bonds MSD Corporation bonds 31,181,000 $2,021,000 (Hint: Interest must be accrued) Required: 1. Prepare the appropriate Journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments include totals for net income, comprehensive income, and retained earings as a result of these investments 3 Answer is not complete Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries neces year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Date General Journal Debit Credit 1 March 31, 2021 Investment in bonds 510,000 Cash 510,000 2 September 01, 20 Investment in bonds Cash 1,230,000 >> 1,230,000 3 September 30, 20 Cash Interest revenue 20,400 20,400 4 590,000 October 02, 2021 Cash Investment in bonds Fair value adjustment * * * 510,000 80,000 5 80,000 October 02, 2021 Fair value adjustment Gain on investments (unrealized, NI) 80,000 6 1,950,000 November 01, 202 Investment in bonds Cash 1,950,000 Prev 1 of 5 Next > 6 1,950,000 November 01, 202 Investment in bonds Cash 1,950,000 >> >> 7 41,000 December 31, 202 Interest receivable Interest revenue 41,000 8 32,500 x December 31, 202 Interest receivable Interest revenue >> 32,500 9 22,000 December 31, 204 Fair value adjustment Gain on investments (unrealized, NI) 22,000 Required 2 > Income statement: Interest revenue Gain on investments $ 8 93,900 102,000 $ 195,900 Net income Statement of comprehensive income: Net income o $ 195,900 % $ Comprehensive income Balance sheet: 195,900 Assets Current Assets Investments IS 0 Shareholders' Equity Retained earnings > Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Credit Date General Journal October 02, 2021 (Cash Investment in bonds Fair value adjustment Debit 590,000 510,000 80,000 Record entry Clear entry View general journal Dren 1 2 3 6 7 8 9 Record the entry for sale of Distribution Transformers bonds for $590,000. Note: Enter debits before credits. Date General Journal October 02, 2021 Fair value adjustment Gain on investments (unrealized, NI) Debit Credit - 80,000 80,000 Record entry Clear entry View general journal i ULLY EERU Record the acquisition of $1,950,000 of M&D Corporation 6% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date November 01 2021 Investment in bonds 1,950,000 Cash 1 950 000 Record entry Clear entry View general 1 N 5 5 6 8 9 Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 41,000 Interest receivable Interest revenue 41,000 Record entry Clear entry View general journal VORU. EL. 1 2 3 4 5 6 7 8 9 Record the interest accrual for M&D bonds. Note: Enter debits before credits. General Journal Debit Credit Date December 31 2021 Interest receivable 32,500 Interest revenue 32,500 Record entry Clear entry View general journal VURULIT Record the entry to adjust fair value of the investments at year-end. Note: Enter debits before credits General Journal Debit Credit Date December 31, 2021 22,000 Fair value adjustment Gain on investments (unrealized, NI) 22,000 Record entry Clear entry View general journal