I need unique and correct answer. Don't try to copy from anywhere. Do not give answer in image formet and hand writing 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 priceand maintaining them in an active trading portfolio. Ornamental's 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 $520,000 at face value.Acquired $1,260,000 of American Instruments' 10% bonds at face value.Sep. 1Sep. 30Received semiannual interest payment on the Distribution Transformers bonds.Oct. 2Sold the Distribution Transformers bonds for $550,000.Nov. 1Purchased $2,000,000 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 $ 1,212,000$ 2,072,000M&D Corporation bonds(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.

Journal entry is a method of recording financial transactions in the book of original entries by…

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.

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.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 16E

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