Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $410,000 at face value.Sep. 1 Acquired $930,000 of American Instruments' 10% bonds at face value.Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.Oct. 2 Sold the Distribution Transformers bonds for $440,000.Nov. 1 Purchased $1,450,000 of M&D Corporation 6% bonds at face value.Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments areAmerican Instruments bondsM&D Corporation bonds(Hint: Interest must be accrued.)Required:1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end.2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for netincome, comprehensive income, and retained earnings as a result of these investments.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet<2$ 881,000$1,511,00034Note: Enter debits before credits.56789Record the entry to adjust to fair value on the date of sale of the DistributionTransformers bonds.> Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $410,000 at face value.Sep. 1 Acquired $930,000 of American Instruments' 10% bonds at face value.Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.Oct. 2 Sold the Distribution Transformers bonds for $440,000.Nov. 1 Purchased $1,450,000 of M&D Corporation 6% bonds at face value.Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments areAmerican Instruments bondsM&D Corporation bonds(Hint: Interest must be accrued.)Required:1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end.2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for netincome, comprehensive income, and retained earnings as a result of these investments.Complete this question by entering your answers in the tabs below.Required 1 Required 2Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet12$ 881,000$1,511,00034Note: Enter debits before credits.56789Record the entry for sale of Distribution Transformers bonds for $440,000.>

Comprehensive income It includes the net income and unrealized income, such as unrealized gains or losses on derivative financial instruments and foreign currency transaction gains or losses. It provides a information about a company's income not fully captured on the income statement.1) Journal entries Date Particulars Debit ($) Credit ($) Mar 31, 2021 Investment in Distribution Transformers corporation bonds 410000 cash 410000 Sep 1, 2021 Investment in American Instruments 10% bonds 930000 Cash 930000 Sept 30, 2021 Cash (410000x8%x6/12) 16400 Interest earned 16400 Oct 2, 2021 Cash 440000 Investment in 8% Distribution Transformation bonds 440000 Oct 2, 2021 Fair adjustment value (440000-410000) 30000 Gain on sale of investment 30000 Oct 2, 2021 Investment in 8% Distribution transformation bonds (440000-410000) 30000 Fair adjustment value 30000 Nov 1, 2021 Investment in M&D corporation 6% bonds 1450000 Cash 1450000 Dec 31, 2021 Interest Receivable (1450000x6%x2/12) 14500 Interest earned 14500 Dec 31, 2021 Interest Receivable (930000x10%x4/12) 31000 Interest earned 31000 Dec 31, 2021 Fair adjustment value 12000 Net unrealized holding gain and loss 12000 Calculation of Net unrealized holding gain and loss Particular Amount ($) Increase or decrease American Instruments 10% bonds (881000-930000) (49000) Decrease M&D corporation 6% bonds (1511000-1450000) 61000 Increase Net unrealized holding gain 12000 2) Income statement, comprehensive income and balance sheet Income statement Particulars Amount ($) Interest income (16400+14500+31000) 61900 Gain on sale of investment 30000 Net income 91900 Statement of comprehensive income Particulars Amount ($) Net income 91900 Other comprehensive income: Fair value adjustment 12000 Comprehensive income 103900 Balance Sheet Assets Amount ($) Amount ($) Current assets: Interest Receivable (14500+31000) 45500 Investment: Investment in securities (881000+1511000) 2392000 Add: Fair adjustment value 12000 2404000 Shareholders' equity: Retained earnings 91900 Other comprehensive income 12000