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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental's
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $500,000. 1 Acquired $1,050,eee of American Instruments' common stock. Sep. 30 Received a $15,eee dividend on the Distribution Transformers common stock. Oct. 2 sold the Distribution Transformers common stock for $535,eee. 1 Purchased $1,5ee, eee of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: Sep. Nov. American Instruments common stock M&D Corporation common stock $ 990, een $1,570, eee 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 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. 500,000 March 31, 2021 Investment in equity securities Cash 500,000 September 01, 2021 N 1,050,000 Investment in equity securities Cash 1,050,000 3 September 30, 2021 Cash 15,000 Dividend revenue 15,000 4 35,000 October 02, 2021 Cash Gain on investments (NI) 35,000 5 535,000 October 02, 2021 Cash Investment in equity securities 535,000 6 November 01, 2021 1,500,000 Investment in equity securities Cash 1,500,000 7 December 31, 2021 Investment in equity securities 60,000 Gain on investments (NI) 60,000 Income statement: Dividend revenue CA Net income Statement of comprehensive income: Net income Other comprehensive income Comprehensive income Balance sheet: Assets Current Assets Noncurrent Assets $ 0 Shareholders' Equity
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