(This problem is a variation of P 12–5, modified to

(This problem is a variation of P 12–5, modified to consider equity investments.)
The following selected transactions relate to investment activities of Ornamental Insulation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31.
No investments were held by Ornamental on December 31, 2020.

Mar. 31 Acquired Transformers for $400,000.
Sep. 1 Acquired $900,000 of American Instruments’ common stock.
Sep. 30 Received a $16,000 on the Transformers common stock.
Oct. 2 Sold the Transformers for $425,000.
Nov. 1 Purchased $1,400,000 of M&D common stock.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments ………$ 850,000
M&D ……………$1,460,000

Required:
1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entry necessary at year-end.
2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.

How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

Leave a Reply

Your email address will not be published.