Help I am so stuck on this one! The following selected transactions relate to...
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Accounting
Help I am so stuck on this one!
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent 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, 2020.
Mar.
31
Acquired Distribution Transformers Corporation common stock for $420,000.
Sep.
1
Acquired $930,000 of American Instruments' common stock.
Sep.
30
Received a $16,800 dividend on the Distribution Transformers common stock.
Oct.
2
Sold the Distribution Transformers common stock for $447,000.
Nov.
1
Purchased $1,420,000 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:
Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.
Income statement:
Dividend revenueselected answer correct
not attempted
$16,800selected answer correct
Gain on investmentsselected answer correct
not attempted
31,000selected answer incorrect
Net income
$47,800
Statement of comprehensive income:
Net incomeselected answer correct
$46,250selected answer incorrect
Other comprehensive income
0selected answer correct
Comprehensive income
$58,000selected answer incorrect
Balance sheet:
Assets
Current Assets
Cashselected answer correct
not attempted
$2,325,000selected answer incorrect
not attempted
not attempted
not attempted
Noncurrent Assets
Investments in equity securitiesselected answer correct
$2,335,000selected answer incorrect
Add: Fair value adjustmentselected answer correct
10,000selected answer correct
$2,345,000
Shareholders Equity
Retained earningsselected answer correct
$46,250selected answer incorrect
Answer & Explanation
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