The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31, No investments were held by Ornamental on December 31, 2023. March 31 Acquired Distribution Transformers Corporation common stock for $510,000. 1 September 1 Acquired $1,065,000 of American Instruments common stock. September 30 Received a $20,400 dividend on the Distribution Transformers common stock. October 2 Sold the Distribution Transformers common stock for $546,000. November 1 Purchased $1,510,000 of M&D Corporation common stock. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end. 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. $ 1,004,000 $ 1,581,000 Complete this question by entering your answers in the tabs below. Required 2 Required 1 Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on the investee. Ornamental's fiscal year ends on December 31, No investments were held by Ornamental on December 31, 2023. March 31 Acquired Distribution Transformers Corporation common stock for $510,000. 1 September 1 Acquired $1,065,000 of American Instruments common stock. September 30 Received a $20,400 dividend on the Distribution Transformers common stock. October 2 Sold the Distribution Transformers common stock for $546,000. November 1 Purchased $1,510,000 of M&D Corporation common stock. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock M&D Corporation common stock Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end. 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. $ 1,004,000 $ 1,581,000 Complete this question by entering your answers in the tabs below. Required 2 Required 1 Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at year end. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company
buys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence on
the investee. Ornamental's fiscal year ends on December 31, No investments were held by Ornamental on December 31, 2023.
March 31 Acquired Distribution Transformers Corporation common stock for $510,000.
September 1 Acquired $1,065,000 of American Instruments common stock.
September 30 Received a $20,400 dividend on the Distribution Transformers common stock.
October 2 Sold the Distribution Transformers common stock for $546,000.
November 1 Purchased $1,510,000 of M&D Corporation connon stock.
December 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments common stock
M&D Corporation common stock
$ 1,004,000
$ 1,581,000
Required:
1. Prepare the appropriate journal entry for each transaction or event during 2024, as well as any adjusting entries necessary at
year end.
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.
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 2024, as well as any adjusting entries necessary at year end.
Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.
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