The following selected transactions relate to Investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances Warrant. Omamental's fiscal year ends on December 31. No Investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 6% Distribution Transformers Corporation bonds costing $560, eee at face value. Sep. 1 Acquired $1,148, 68e of American Instruments 8% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $601,000. Nov. 1 Purchased $1,560,000 of M&D Corporation 4% 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 $1,074, eee $1,637,000 (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. For any sales, prepare entries to update the falr-value adjustment, record any reclassification adjustment, and record the sale. 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 earnings as a result of these Investments. Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less Credit No 1 Date March 31, 2021 General Journal Investment in bonds Cash Debit 560.000 0 0 560.000 September 01, 20 Investment in bonds 1.140,000 Cash 1,140,000 0 0 0 0 3 16.800 September 30, 20 Cash Interest revenue 16,800 41.000 October 02. 2021 Fair value adjustment Gain on investments (unrealized, OCI) 41.000 601,000 X October 02,2021 Cash Investment in bonds Fair value adjustment 580,000 X 41,000 X * * * * * 1.560,000 October 02. 2021 Investment in bonds Cash 1,580,000 $ November 01, 20 Investment in bonds Cash 1,560,000 1,560,000 December 31, 204 Investment in bonds 36,000 Interest revenue 35,000 * * * December 31, 20 Interest receivable 160,000 Interest revenue 160,000 X 10 143,000 X December 31, 204 Fair value adjustment Gain on investments (unrealized, NI) 143,000 $ Required 1 Required 2 > AILWEIL HUL Lumpiele. Complete this question by entering your answers in the tabs below. Required 1 Required 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 earnings as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Show less $ Income statement: Interest revenue Investment in bonds Gain on investments Net income Statement of comprehensive income: Net income Other comprehensive income: 16,800 x 10,400 41,000 68,200 $ 16,800 x Comprehensive income Balance sheet: Assets Current Assets Interest revenue Cash 36,000 560,000 Noncurrent Assets Investment in bonds Add: Fair value adjustment Shareholders' Equity Retained earnings $ 2,711,000 10,000 $ 2,721,000 $ 10,000 The following selected transactions relate to Investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances Warrant. Omamental's fiscal year ends on December 31. No Investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 6% Distribution Transformers Corporation bonds costing $560, eee at face value. Sep. 1 Acquired $1,148, 68e of American Instruments 8% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $601,000. Nov. 1 Purchased $1,560,000 of M&D Corporation 4% 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 $1,074, eee $1,637,000 (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. For any sales, prepare entries to update the falr-value adjustment, record any reclassification adjustment, and record the sale. 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 earnings as a result of these Investments. Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) Show less Credit No 1 Date March 31, 2021 General Journal Investment in bonds Cash Debit 560.000 0 0 560.000 September 01, 20 Investment in bonds 1.140,000 Cash 1,140,000 0 0 0 0 3 16.800 September 30, 20 Cash Interest revenue 16,800 41.000 October 02. 2021 Fair value adjustment Gain on investments (unrealized, OCI) 41.000 601,000 X October 02,2021 Cash Investment in bonds Fair value adjustment 580,000 X 41,000 X * * * * * 1.560,000 October 02. 2021 Investment in bonds Cash 1,580,000 $ November 01, 20 Investment in bonds Cash 1,560,000 1,560,000 December 31, 204 Investment in bonds 36,000 Interest revenue 35,000 * * * December 31, 20 Interest receivable 160,000 Interest revenue 160,000 X 10 143,000 X December 31, 204 Fair value adjustment Gain on investments (unrealized, NI) 143,000 $ Required 1 Required 2 > AILWEIL HUL Lumpiele. Complete this question by entering your answers in the tabs below. Required 1 Required 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 earnings as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Show less $ Income statement: Interest revenue Investment in bonds Gain on investments Net income Statement of comprehensive income: Net income Other comprehensive income: 16,800 x 10,400 41,000 68,200 $ 16,800 x Comprehensive income Balance sheet: Assets Current Assets Interest revenue Cash 36,000 560,000 Noncurrent Assets Investment in bonds Add: Fair value adjustment Shareholders' Equity Retained earnings $ 2,711,000 10,000 $ 2,721,000 $ 10,000