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Question: problem 125 various transactions related to trading securities lo1241123 the...

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Problem 12-5 Various transactions related to trading securities [LO1241,12-3) 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 price and maintaining them in an active trading portfolio. Ornamentals 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 $400,000 at face value. Sep. 1 Acquired $900,000 of American Instruments 10% bonds at face value. Sep. 30 Received semiannual interest payment Oct. 2 Sold the Distribution Transformers bonds for $425,000 Nov. 1 Purchased $1,400,000 of MSD Corporation 6% bonds at face value Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the on the Distribution Transformers bonds investments are American Instruments bonds M&D Corporation bonds $850,000 $1,460,e00 (Hint: Interest must be accrued)
American Instruments bonds M&D Corporation bonds 850,000 $1,460,000 (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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry for each transaction or event during 2018, as well as (If no entry is required for a transaction/event, select No journal entry requred in the first account feld any adjusting entries
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