The following selected transactions relate to investment activities of Ornamental Insulation Corporation during The company
buys debt securities intending to profit from shortterm differences in price and maintaining them in an active trading portfolio.
Ornamental's fiscal year ends on December No investments were held by Ornamental on December
March Acquired Distribution Transformers Corporation bonds costing $ at face value.
September Acquired $ of American Instruments' bonds at face value.
September Received semiannual interest payment on the Distribution Transformers bonds.
October sold the Distribution Transformers bonds for $
November Purchased $ of M&D Corporation bonds at face value.
December Recorded any necessary adjusting entrys relating to the investments. The market prices of the investments are
Hint Interest must be accrued.
Required:
Prepare the appropriate journal entry for each transaction or event during as well as any adjusting entries necessary at
year end.
Indicate any amounts that Ornamental Insulation would report in its income statement, statement of comprehensive
income, and balance sheet as a result of these investments. Include totals for net income, comprehensive income,
and retained earnings as a result of these investments. Ignore income taxes.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required
Indicate any amounts that Ornamental Insulation would report in its income statement, statement of
comprehensive income, and balance sheet as a result of these investments. Include totals for net income,
comprehensive income, and retained earnings as a result of these investments. Ignore income taxes.
