Question

The following selected transactions relate to lInvestment activitles of Omamental Insulation Corporation during 2018. The buys debt securtes, intending to profit from short-term differences In price and maintalning them in an active mental's fiscal year ends on December 31. No Investments were held by Ornamental on December 31, 2017 trading portfollo. Mar. 31 Acquired as Distribution Transformers Corporation bonds costing $400,000 at face value. Sep. 1 Acquired $988,e00 of Ameri can Instrunents 1e8 bonds at face value. seniannual interest paynent on the Distribution Transforners bonds Oct. 2 Sold the Distribution Transformers bonds for $425,eee . 1 Purchased $1,400,eee of HSD 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 bands s 8s6,e8e $1,46e,eee M&D Carporation bonds Hint Interest must be accrued.) Required 1 Prepare the appropriate journal entry for each trencaction or event during 2018, as well as any adjusting entries necessary at year end. 2 Indicate any amounts that Ornamentai Insulation would report in its 2018 Income statement, 2018 statement of comprehensive income. and 12/31/2018 balance sheet as a result of these invastments Complete this question by entering your answers in the tabs below. Required 1Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end f no entry is required for a transaction/event select No journal entry required in the first account feld.)

Answer 1