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 $540,000 at face value. Sep. 1 Acquired $1,320,000 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 $580,000 Nov. 1 Purchased $2,100,000 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 $1,274,000 $2,174,000 M&D Corporation bonds 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. Answer is not complete. Complete this question by entering your answers in the tabs below. 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, 2018Investment in Distribution Transformers bonds 540,000 Cash 540,000 2 September 01, 201 Investment in American Instruments bonds | 1.320,000 Cash 1,320,000 September 30, 201 Cash 21,600 Interest revenue 21,600 4 October 02, 2018Cash 580,000 Investment in Distribution Transformers bonds 500,000 80,000 Loss on sale of investments October 02, 2018Cash Investment in American Instruments bonds Gain on sale of investments November 01, 2018Investment in M&D Corporation bonds 2,100,000 Cash 2,100,000 7 December 31, 2018 Interest receivable 28,333 Investment revenue 28,333 December 31, 2018 Interest receivable Investment revenue December 31, 2018Fair value adjustment Unrealized holding gain-o0 Journal entry worksheet 4 6 8 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2018 Cash 580,000 Investment in Distribution Transformers 500,000 bonds Loss on sale of investments 80,000 Record entry Clear entry View general journal Journal entry worksheet 4 6 7 Record the entry for sale of Distribution Transformers bonds for $580,000. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2018 Cash investment in American Instruments bonds Gain on sale of investments Record entry Clear entry View general journal Journal entry worksheet 4 7 Record the acquisition of $2,100,000 of M&D Corporation 6% bonds at face value. Note: Enter debits before credits. Date General Journal Debit Credit November 01, 2018 nvestment in M&D Corporation bonds 2,100,000 Cash 2,100,000 Record entry Clear entry View general journal Journal entry worksheet 2 3 4 6 Record the interest accrual for American Instruments bonds. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2018 Intest receivable 28,333 Investment revenue 28,333 Record entry Clear entry View general journal Journal entry worksheet 4 6 7 Record the interest accrual for M&D bonds. Note: Enter debits before credits Date General Journal Debit Credit December 31, 2018 Interest receivable nvestment revenue Record entry Clear entry View general journal Journal entry worksheet 2 4 6 8 Record the entry for Fair-value adjustment Note: Enter debits before credits. Date General Journal Debit Credit Fair value adjustment Unrealized holding gain-oCI December 31, 2018 Record entry Clear entry View general journal Required 1Required 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. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Investment revenue Gain on sale of investments Net income Statement of comprehensive income Net income Unrealized holding loss-oci Balance sheet: Assets Current Assets Interest receivable Investments Investment in Distribution Transformers bonds Shareholders' Equity