80.2K

Verified Solution

Link Copied!

The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2024. The company buys debt securities, not intending to profit from shortterm differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant, Ornamental's fiscal year ends on December 31 . No investments were held by Ornamental on December 31, 2023. Mareh 31 Mcquired 74. pintribution Franeforners Corporation bonda conting $440,000 at face value. September 1 Acquired 5960,000 of Anerican Inatruments 9s bonda at face valde. septenber 30 Received seniannual interent payment on the Distribution Transfornera bonds. October 2 Sold the Distribution Transformern bonds for $469,000. Hoveaber 1 Purchssed 51,440,000 ot Mod Corporation 51 bond at face value. beceeber a1 Pecorded any necensary adjunting entry(a) relating to the investmenta, The market pricea of the investmenti are: Asertean inetrwensta bonde M60 Corperation bondi 5,5,506,000 (Hint: Interest must be accrued.) Required: 1. Prepare the appropriate joumal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year-end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 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 those investments. Include totals for net income, comprehensive income, and retained earnings os a result of these investments. Ignore income taxes

Answer & Explanation Solved by verified expert

See Answer