The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The companybuys equity securities as noncurrent investments. None of Ornamental's investments are large enough to exert significant influence onthe investee. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.Mar. 31 Acquired Distribution Transformers Corporation common stock for $400,000.Sep. 1 Acquired $900,000 of American Instruments' common stock.Sep. 30 Received a $16,000 dividend on the Distribution Transformers common stock.Oct. 2 Sold the Distribution Transformers common stock for $425,000.Nov. 1 Purchased $1,400,000 of M&D Corporation common stock.Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:American Instruments common stock $ 850,000M&D Corporation common stock$1,460,000Required:1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at yearend.2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensiveincome, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, andretained earnings as a result of these investments.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $400,000. 1 Acquired $900,000 of American Instruments' common stock. Sep. Sep. 30 Received a $16,000 dividend on the Distribution Transformers common stock. Oct. Nov. 1 Purchased $1,400,000 of M&D Corporation common stock. 2 Sold the Distribution Transformers common stock for $425,000. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 850,000 M&D Corporation common stock $1,460,000

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $400,000. 1 Acquired $900,000 of American Instruments' common stock. Sep. Sep. 30 Received a $16,000 dividend on the Distribution Transformers common stock. Oct. Nov. 1 Purchased $1,400,000 of M&D Corporation common stock. 2 Sold the Distribution Transformers common stock for $425,000. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 850,000 M&D Corporation common stock $1,460,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 17P

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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020. Mar. 31 Acquired Distribution Transforners Corporation common stock for $560,000. Sep. 1 Acquired $1,140,000 of American Instruments' common stock. Sep. 30 Received a $16, 800 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $601,000. Nov. 1 Purchased $1,560,000 of yaD Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: $1,074,000 $1,637,000 American Instruments common stock MAD Corporation comnon stock Required: 1. Prepare the appropriate journal…
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $460,000. Sep. 1 Acquired $990,000 of American Instruments' common stock. Sep. 30 Received a $13,800 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $491,000. Nov. 1 Purchased $1,440,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 934,000 M&D Corporation common stock $…
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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term 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, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $460,000 at face value. Sep. 1 Acquired $1,080,000 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 $515,000. Nov. 1…
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term 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, 2020. Mar. 31 Acquired 5% Distribution Transformers Corporation bonds costing $410,000 at face value. Sep. 1 Acquired $915,000 of American Instruments’ 8% bonds at face value. Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds. Oct. 2 Sold the Distribution Transformers bonds for $436,000. Nov. 1 Purchased $1,410,000 of M&D Corporation 3% bonds at face value. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:…
The following selected transactions relate to investment activities of Omamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $540,000 at face value. Sep. 1 Acquired $1,320,000 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 $580,000. Nov. 1 Purchased $2,100,000 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…
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $480,000 at face value. Sep. 1 Acquired $1,140,000 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 $545,000. Nov. 1 Purchased $1,800,000 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 $ 1,098,000 M&D…
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, intending to profit from short-term differences in price and manufacturing them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired 8% Distribution Transformer’s Corporation bonds coating $580,000 at face value. Sep. 1 Acquired $1,440,000 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 $640,000. Nov. 1 Purchased $2,300,000 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 $1,398,000 M&D Corporation bonds $2,378,000