The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. 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, 2020.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $590,000 at face value. | ||
| Sep. | 1 | Acquired $1,470,000 of American Instruments' 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $655,000. | ||
| Nov. | 1 | Purchased $2,350,000 of M&D Corporation 6% bonds 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 | $ | 1,429,000 | |
| M&D Corporation bonds | $ | 2,429,000 | |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. 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, 2020.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $510,000 at face value. | ||
| Sep. | 1 | Acquired $1,230,000 of American Instruments' 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $590,000. | ||
| Nov. | 1 | Purchased $1,950,000 of M&D Corporation 6% bonds 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 | $ | 1,181,000 | |
| M&D Corporation bonds | $ | 2,021,000 | |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation 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 Distribution Transformers Corporation common stock for $410,000. | ||
| Sep. | 1 | Acquired $915,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $10,250 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $436,000. | ||
| Nov. | 1 | Purchased $1,410,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 864,000 | |
| M&D Corporation common stock | $ | 1,471,000 | |
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. 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, 2020.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $490,000 at face value. | ||
| Sep. | 1 | Acquired $1,170,000 of American Instruments' 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $560,000. | ||
| Nov. | 1 | Purchased $1,850,000 of M&D Corporation 6% bonds at face value. | ||
| Dec. | 31 |
Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are |
| American Instrument Bonds |
$1,129,000 |
| M&D Corporation Bonds | $1,919,000 |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment activities of Ornamental Insulation Corporation 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 Distribution Transformers Corporation common stock for $450,000. | ||
| Sep. | 1 | Acquired $975,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $18,000 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $480,000. | ||
| Nov. | 1 | Purchased $1,450,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 920,000 | |
| M&D Corporation common stock | $ | 1,515,000 | |
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. 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, 2020.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $490,000 at face value. | ||
| Sep. | 1 | Acquired $1,170,000 of American Instruments' 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $560,000. | ||
| Nov. | 1 | Purchased $1,850,000 of M&D Corporation 6% bonds 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 | $ | 1,129,000 | |
| M&D Corporation bonds | $ | 1,919,000 | |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment activities of Ornamental Insulation Corporation 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 Distribution Transformers Corporation common stock for $480,000.
Sep. 1 Acquired $1,020,000 of American Instruments' common stock.
Sep. 30 Received a $19,200 dividend on the Distribution Transformers common stock.
Oct. 2 Sold the Distribution Transformers common stock for $513,000.
Nov. 1 Purchased $1,480,000 of M&D Corporation common stock.
Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are:
American Instruments common stock $ 962,000
M&D Corporation common stock $ 1,548,000
Required:
1. Prepare the appropriate journal entry for each transaction or
event during 2021, as well as any adjusting entries 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 balance sheet as a result of these investments.
Include totals for net income, comprehensive income, and retained
earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. 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, 2020.
Mar. 31 Acquired 8% Distribution Transformers Corporation bonds costing $600,000 at face value.
Sep. 1 Acquired $1,500,000 of American Instruments' 10% bonds at face value.
Sep. 30 Received semiannual interest payment on the Distribution Transformers bonds.
Oct. 2 Sold the Distribution Transformers bonds for $670,000.
Nov. 1 Purchased $2,400,000 of M&D Corporation 6% bonds 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 $ 1,460,000
M&D Corporation bonds $ 2,480,000
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each transaction or
event during 2021, as well as any adjusting entries 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 balance sheet as a result of these investments.
Include totals for net income, comprehensive income, and retained
earnings as a result of these investments.
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation 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 Distribution Transformers Corporation common stock for $590,000. | ||
| Sep. | 1 | Acquired $1,185,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $20,650 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $634,000. | ||
| Nov. | 1 | Purchased $1,590,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 1,116,000 | |
| M&D Corporation common stock | $ | 1,669,000 | |
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
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 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
Roberta is president of a pharmaceutical company which is based in the U.S., but has a substantial amount of sales in other countries. Roberta's company manufactures drugs prescribed to those infected with HIV and other illnesses. She is informed by missionary workers that millions of people in Africa have HIV and many have died. She receives a request to provide medication to certain locations in Africa free of charge. In addition, Roberta has been asked by a group in the U.S. to provide medication free of charge to HIV positive individuals within the U.S. and to donate other drugs her company makes for the treatment of other illnesses. Roberta, in good faith and based on a good review of the company's financial position, believes that the company can afford to donate some supplies, but not in the quantities requested by both foreign and U.S. concerns. What do you believe is the ethical thing for Roberta to do under the circumstances?
In: Economics