The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Omamental on December 31, 2020 Mar. 31 Acquired Distribution Transformers Corporation common stock for $560,000. Sep. 1 Acquired $1,140,000 of American Instruments common stock. Sep. 30 Received a $16,800 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $601,800. Nov. 1 Purchased $1,560,000 of MD Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock MAD Corporation common stock $1,074,000 $1,637,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end 2. Indicate any amounts that Omamental Insulation would report in its 2021 Income statement 2021 statement of comprehensive Income, and 12/31/2021 balance sheet as a result of these investments, Include totals for net income, comprehensive income, and retained eamings as a result of these investments 1 March 31, 2021 Investment in equity securities Cash 560,000 O 560,000 2 September 01, 20 Investment in equity securities 1,140,000 Cash 1,140,000 3 September 30, 20 Cash Dividend revenue 16,800 O 16,800 > 4 October 02, 2021 Investment in equity securities Gain on investments (unrealized, OCI) 41.000 * 41,000 5 601,000 October 02, 2021 Cash Investment in equity securities Gain on investments (NI) oo 560,000 41.000 6 November 01, 204 Investment in equity securities Cash 1,560,000 1.500.000 7 December 31, 200 Gain on investments (unrealized OCI 11.000 Investment in equity securities 11.000 Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Indude totals for net incom comprehensive income, and retained earnings as a result of these investments. S 16,800 41,000 57,800 IS Income statement: Dividend revenue Gain on investments Net income Statement of comprehensive income: Net income Other comprehensive income Comprehensive income Balance sheet: Assets Current Assets 1$ 11,000 $ Noncurrent Assets Gain on investments $ 1.074,000 $ 1,637,000 $ $ 2.711 000 Shareholders Equity Prey 4 of 5 Next > Journal entry worksheet K 1 2 3 4 (5 6 7 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 Investment in equity securities Gain on investments (unrealized, OCI) Debit 41,000 41,000 Record entry Clear entry View general journal entry worksheet 1 2 3 4 6 7 > Record the entry for sale Distribution Transformers common stock for $601,000. Note: Enter debits before credits. Debit Credit Date General Journal October 02, 2021 Cash Investment in equity securities Gain on investments (NI) 601,000 560,000 41.000 Record entry Clear entry View general journal 1 2 3 4 5 6 7 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 Gain on investments (unrealized, OCI) 11,000 Investment in equity securities 11,000 Pusondata Glam View Canaaliwal
