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. Ornamentals 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 $530,000 at face value.
Sep.		1		Acquired $1,290,000 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 $565,000.
Nov.		1		Purchased $2,050,000 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	$	1,243,000
M&D Corporation bonds	$	2,123,000

(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.

September 30, 201 Cash 21,200 Investment revenue 21,200 October 02, 2018 4 Cash 565,000 Investment in Distribution Transformers bonds 530,000 Gain on sale of investments 35,000 October 02, 2018 5 Cash 565,000 Investment in Distribution Transformers bonds 530,000 Gain on sale of investments 35,000 2,050,000 November 01, 2018 Investment in M&D Corporation bonds 6 2,050,000 Cash December 31, 2018 Interest receivable 7 63,500 Interest revenue 63,500 December 31, 2018 43,000 20,500 Interest revenue 63,500 December 31, 2018 Fair value adjustment 26,000