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Question: problem 127 various transactions related to equity investments fair value...

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Problem 12-7 Various transactions related to equity investments: fair value through net income [LO12-5) The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamentals investments are large enough to exert significant influence on the investee. Ornamentals fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017 Mar. 31 Acquired Distribution Transformers Corporation common stock for $550,000. Sep. 1 Acquired $1,125,000 of American Instruments common stock Sep. 30 Received a $22,000 dividend on the Distribution Transformers common stock Oct. 2 Sold the Distribution Transformers common stock for $590,000 Nov. 1 Purchased $1,550,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock $1,060,000 $1,625,000 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 belowComplete this question by entering your answers in the tabs below. Required 1 Required 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. Income statement Statement of comprehensive income Balance sheet: Assets Current Assets Shareholders Equity くRequired 1 Required 2

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