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.
Note: Amounts to be deducted should be indicated with a minus sign.
Show less The following selected transactions relate to Investment activities of Ornamental Insulation Corporation during 2024. The company buys debt securitles, not intending to profit from short-term differences in price and not necessarly to hold debt securitles to maturity, but to have them avallable 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.
March 31 Acquired 8\% Distribution Transformers Corporation bonds costing \( \$ 400,000 \) at face value. September 1 Acquired \( \$ 900,000 \) of American Instruments' \( 10 \% \) bonds at face value.
September 30 Received semiannual interest payment on the Distribution Transformers bonds.
October 2 Sold the Distribution Transformers bonds for \( \$ 425,000 \).
November 1 Purchased \( \$ 1,400,000 \) of M\&D Corporation \( 6 \% \) bonds at face value.
December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
(HInt: Interest must be accrued.)
Required:
1. Prepare the appropriate journal 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 these Investments. Include totals for net Income, comprehensive Income, and retained earnings as a result of these investments. Ignore Income taxes.