The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2024. The company buys
Question:
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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