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…

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 are American Instruments bonds M&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 net income, 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 2 Prepare 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 list Journal entry worksheet $ 881,000 $1,511,000 < 4 Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds. >

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 2TP: Below is select information from two, independent companies. Additional information includes: On...