Required Assignment Saved Help Save & Exit Submit Check my work 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 S% 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 MSD Corporation 34 bonds costing 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: $ 864,000 $1,471,000 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. For any sales, prepare entries to update the fair-value adjustment, record any reclassification adjustment, and record the sale. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. record the sale. (If no entry is required for a transaction/event, select "No journal entry required" In No 1 Durin March 31, 2021 General Journal Investment in bonds Cash Debit 410,000 Credit 410,000 2 September 01, 202 Investment in bonds Cash 915,000 915,000 3 September 30, 202 Cash Interest revenue 4 October 02, 2021 Fair value adjustment 26,000 Gain on investments (unrealized, OCI) 26,000 5 October 02, 2021 Reclassification adjustment (OCI) Fair value adjustment 8 December 31, 2021Interest receivable Interest revenue 9 December 31, 2021 Interest receivable Interest revenue Income statement: Interest revenue Gain on investments Statement of comprehensive income: Net income Other comprehensive income: Reclassification adjustment Balance sheet: Assets Current Assets Noncurrent Assets 0 Shareholders' Equity 0