The following selected transactions relate to investment activities of Ornamental Insulation Corporation. The company buys 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 when circumstances warrant. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2015.

2016

Feb. 21 Acquired Distribution Transformers Corporation common shares costing $520,000.

Mar. 18 Received cash dividends of $9,500 on the investment in Distribution Transformers common shares.

Sep. 1 Acquired $1,260,000 of American Instruments' 10% bonds at face value.

Oct. 20 Sold the Distribution Transformers shares for $550,000.

Nov. 1 Purchased M&D Corporation common shares costing $2,000,000.

Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:

American Instruments bonds	$	1,212,000
M&D Corporation shares	$	2,072,000

(Hint: Interest must be accrued for the American Instruments bonds.)

2017

Jan. 20 Sold the M&D Corporation shares for $2,097,000.

Mar. 1 Received semiannual interest of $63,000 on the investment in American Instruments bonds.

Aug. 12 Acquired Vast Communication common shares costing $770,000.

Sept. 1 Received semiannual interest of $63,000 on the investment in American Instruments bonds.

Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:

Vast Communication shares	$	790,000
American Instruments bonds	$	1,192,000

Required:

1.

Prepare the appropriate journal entry for each transaction or event during 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) a. Record the acquisition of Distribution Transformers Corporation shares costing $520,000. b. Record the receipt of cash dividends of $9,500 on the investment in Distribution Transformers common shares. c.Record the acquisition of American Instrument's 10% bonds at face value d.Record the sale of Distribution Transformers shares for $550,000. e.Record the purchase of M&D Corporation common shares costing $2,000,000. f.Record any necessary adjusting entries at year end related to the investments. g.Record the fair value adjustment. indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments

3.

Prepare the appropriate journal entry for each transaction or event during 2017.

a.Record the sale of M&D Corporation shares for $2,097,000.

b.Record the receipt of semiannual interest of $63,000 on the investment in American Instruments bonds.

c.Record the acquisition of Vast Communications shares costing $770,000.

d.Record the receipt of semiannual interest of $63,000 on the investment in American Instruments bonds.

e.Record any necessary adjusting entries at year end related to the investments.

f.Record the fair value adjustment.

2. Indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Statement of comprehensive income: Balance sheet: Assets Current Assets Investments Shareholders' Equity Accumulated other comprehensive income 2. Indicate any amounts that Ornamental Insulation would report in its 2016 balance sheet and income statement as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Statement of comprehensive income: Balance sheet: Assets Current Assets Investments Shareholders' Equity Accumulated other comprehensive income