The following selected transactions relate to investmentactivities of Ornamental Insulation Corporation during 2018. Thecompany buys equity securities as investments. None of Ornamentalâsinvestments are large enough to exert significant influence on theinvestee. Ornamentalâs fiscal year ends on December 31. Noinvestments were held by Ornamental on December 31, 2017.
Mar. 31 Acquired Distribution Transformers Corporation commonstock for $520,000.
Sep. 1 Acquired $1,080,000 of American Instruments' commonstock.
Sep. 30 Received a $18,200 dividend on the DistributionTransformers common stock.
Oct. 2 Sold the Distribution Transformers common stock for$557,000.
Nov. 1 Purchased $1,560,000 of M&D Corporation commonstock.
Dec. 31 Recorded any necessary adjusting entry(s) relating tothe investments. The market prices of the investments are: AmericanInstruments common stock $ 1,018,000 M&D Corporation commonstock $ 1,640,000
Required: 1. Prepare the appropriate journal entry for eachtransaction or event during 2018, as well as any adjusting entriesnecessary at year end.
2. Indicate any amounts that Ornamental Insulation would reportin its 2018 income statement, 2018 statement of comprehensiveincome, and 12/31/2018 balance sheet as a result of theseinvestments.
The following selected transactions relate to investmentactivities of Ornamental Insulation Corporation during 2018. Thecompany buys equity securities as investments. None of Ornamentalâsinvestments are large enough to exert significant influence on theinvestee. Ornamentalâs fiscal year ends on December 31. Noinvestments were held by Ornamental on December 31, 2017.
Mar. 31 Acquired Distribution Transformers Corporation commonstock for $520,000.
Sep. 1 Acquired $1,080,000 of American Instruments' commonstock.
Sep. 30 Received a $18,200 dividend on the DistributionTransformers common stock.
Oct. 2 Sold the Distribution Transformers common stock for$557,000.
Nov. 1 Purchased $1,560,000 of M&D Corporation commonstock.
Dec. 31 Recorded any necessary adjusting entry(s) relating tothe investments. The market prices of the investments are: AmericanInstruments common stock $ 1,018,000 M&D Corporation commonstock $ 1,640,000
Required: 1. Prepare the appropriate journal entry for eachtransaction or event during 2018, as well as any adjusting entriesnecessary at year end.
2. Indicate any amounts that Ornamental Insulation would reportin its 2018 income statement, 2018 statement of comprehensiveincome, and 12/31/2018 balance sheet as a result of theseinvestments.
