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they are all part of the same question. thank you! Problem 12-5 (Static) Various transactions related to trading securities; financial statement effects [LO12-1, 12-3] The
they are all part of the same question. thank you!
Problem 12-5 (Static) Various transactions related to trading securities; financial statement effects [LO12-1, 12-3] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. 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 31,2023. March 31 Acquired 8x Distribution Transformers Corporation bonds costing $400, eee at face value. September 1 Acquired \$98e, 800 of Anerican Instruments' 10x bonds at face value. Septenber 30 . Received semiannual interest payment on the Distribution Transforsers bonds. october 2 Sold the Distribution Transformers bonds for $425,000. Novenber 1 Purchased $1,400,000 of Mso Corporation 6 bonds at face value. becember 31 Recorded any necessary adjusting entry(s) relating to the investnents. The market prices of the investments are Anerican Instruments bonds MSD Corporation bonds $850,689$1,460,e0e (Hint Interest must be accrued.) Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end. Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $400,000 at face value. Note: Enter debits before credits. Journal entry worksheet 789 Record the acquisition of $900,000 of American Instruments' 10% bonds at face value. Note: Enter debits before credits. Journal entry worksheet 6789 Record the entry for the semiannual interest recelved on the Distribution Transformers bonds. Note: Enter debits before credits. Journal entry worksheet 6 9 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. Note: Enter debits before credits. Journal entry worksheet 789 Record the entry for sale of Distribution Transformers bonds for $425,000. Note: Enter debits before credits. Journal entry worksheet Step by Step Solution
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