Problem $12-5($Algo$)$ Various transactions related to trading securities; financial statement effects $[$LO$12-$

$1,12-3]$

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 $31,2023.$

March $31$ Acquired $8\%$ Distribution Transformers Corporation bonds costing $$500,000$ at face value.

September $1$ Acquired $$1,200,000$ 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 $$575,000.$

November $1$ Purchased $$1,900,000$ of M&D Corporation $6\%$