The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. 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, 2023.

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.

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Mar. 31 Sep. 1 Sep. 30 Oct. 2 Nov. 1 Dec. 31 Acquired 8% Distribution Transformers Corporation bonds costing $400,000 at face value. Acquired $900,000 of American Instruments' 10% bonds at face value. Received semiannual interest payment on the Distribution Transformers bonds. Sold the Distribution Transformers bonds for $425,000. Purchased $1,400,000 of M&D Corporation 6% bonds at face value. 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.) $ 850,000 $1,460,000