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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences

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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020. Mar. 31 Acquired 8 Distribution Transformers Corporation bonds conting $530,000 at face value. Sep. 1 Aequired $1,290,000 of American Instruments 104 bonds at face value. Sep. 30 Received aemiannual interest payment on the Distribution Transformere bonds. Oct. 2 sold the Distribution Transformers bonds for $565,000. 1 Purchased $2,050,000 of MAD Corporation 6 bonds at face value. Dec. 31 Recorded any necessary adjusting entry() relating to the investments. The market prices of the investments are Nov. American Instrumente bonds M&D Corporation bonds $1,205,000 $2,123,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each fransaction or event during 2021, as well as any adjusting entries necessary at year end. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/312021 balance sheet as a result of these investments include totals for net income, comprehensive income, and retained earnings as a result of these investments. Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $530,000 at face value. Note: Enter debits before credits. Date General Journal Debit Credit March 31, 2021 Journal entry worksheet Record the entry for the semiannual interest received on the Distribution Transformers bonds. Note: Enter debits before credits. General Journal Debit Credit Date September 30, 2021 Journal entry worksheet Record the entry for sale of Distribution Transformers bonds for $565,000. Note: Enter debits before credits. Date General Journal Debit Credit October 02, 2021 Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Record the acquisition of $2,050,000 of M&D Corporation 6% bonds at face value. Note: Enter debits before credits. General Journal Debit Credit Date November 01, 2021 Journal entry worksheet

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