Chapter $12$ Assignment

Boeing Internship Report

Out.pl

wsu canvas $-$ Search

Chapter $12$ Assignment

Saved

$4$

$25$

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 $31,2023.$

polnes

March $31$ Acquired $8\%$ Distribution Transformers Corporation bonds costing $$570,000$ at face value.

September $1$ Acquired $$1,410,000$ of American Instruments' $10\%$ bonds at face value.

September $30$ Received semiannual interest payment on the Distribution Transformers bonds.

October $2$ Sold the Distribution Transformers bonds for $$625,000.$

November $1$ Purchased $$2,250,000$ of M&D Corporation $6\%$ bonds at face value.

December $31$ Recorded any necessary adjusting entry$($s$)$ relating to the investments. The market prices of the investments are

American Instruments bonds

M&D Corporation bonds

$$1,367,000$

$$2,327,000$

$($Hint: Interest must be accrued.$)$

Required:

Prepare the appropriate journal entry for each transaction or event during $2024,$ as well as any adjusting entries necessary at year end

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.

$$

$$

Prepare the appropriate journal entry for each transhaction 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.

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

Record the acquisition of $8\%$ Distribution Transformers Corporation bonds costing $$570,000$ at face value.

Prev

$4$ of $8$

Next

e here to search