Homework Savnd The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The comp d 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 Distribution Tranaformers Corporation bonds costing $560,000 at. face value Sep. 1 Acquired $1,380,000 of American Inat.rument\' t bonds at face value sep. 30 Received semiannual intereat payment on the Distribution Transformers bonds Oct. 2 Sold the Distribution Iranaformers bonds for $610,c00 NoV. L Furchased $2,200,000 of 6D Corporation 6 bondn at face value. Dec. 31 Recorded any necessary adjusting entry(a) relating to the investments. The market prices of the investnenta ares American Instruments bonds N&D; Corporation bonds $1,336,000 $2,273,000 (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 staterment, 2018 statement of comprehensive income, and 12/31/2018 balance shoet 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 wel as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select \'No journal entry required\" in the first account field.) View transaction list Journal entry worksheet Record the acquisition of 8% Distribution Transformers Corporation bonds costing $560,000 at face value. Note: Enter debits before credits. General Journal Debit Credit Date March 31, 2018 View general journal Clear entry Record entry Required 2 1 of 5 Next > Prex
To Bank A/c $ 560,000
(Being bonds purchased)
To Bank A/c $ 1,380,000
(Being Bonds Purchased)
To Interest Received $ 22,400
(Being interest received)
To Gain on Sale of DTC Bonds A/c $50,000
To 8% Distribution Transformers Corporation A/c $ 560,000
(Being 8% Distribution Transformers Corporation Sold0
To Bank A/c 2,200,000
(Being 6% M&D Corporation Bonds Purchased)
6% M& D Corporation Bonds A/c Dr. ($ 2200,000*6%*2/12) $ $ 22,000
To Accrued Interest A/c$68,000
(Being Interest Accrued)
Loss on Sale of Investments $ 39,000
To 10% American Instruments Bond A/c $ (1,380,000+46,000) $ 1,426,000
To 6% M& D Corporation Bonds A/c $ (2,200,000+22,000) $ 2,222,000
(Being all bonds squared off on 31st December)
Since all the sale transactions have been squared off there is no unrealized amount left)
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