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Prepare the appropriate journal entry for each transaction

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Reference no: EM133335561

REQUIREMENT

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys debt securities, Intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2023. 2 27 March 31 Acquired 8X Distribution Transformers Corporation bonds costing $540,090 at face value.

September 1 acquired $1,320,090 of American Instrument's 10% bonds at face value. September 30 Received semiannual interest payment on the Distribution Transformers bonds. October 2 Sold the Distribution Transformers bonds for $580,090. November 1 purchased $2,109,090 of MD Corporation 6% bands at face value.

December 31 Recorded any necessary adjusting entry (s) relating to the investments. The market prices of the investments are American Instruments bonds $ 1, 274,000 MAD Corporation bonds $ 2,174,090 Print ( Hint Interest must be accrued.] References

Required:

Question 1. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end.

Question 2. Indicate any amounts that Ornamental Insulation would report in its 2024 income statement, 2024 statement of comprehensive income, and 12/31/2024 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.

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Indicate any amounts that Ornamental Insulation would report in its 2024 income statement, 2024 statement of comprehensive income, and 12/31/2024 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. Income statement: Net income Statement of comprehensive income: Other comprehensive income Comprehensive income Balance sheet: Assets Current Assets Investments investment in bonds $ Shareholder's; Equity Retain

Reference no: EM133335561

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