The following selected transactions relate to investment activities of Ornamental Insulation Corporation. The company buys 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 when circumstances warrant. Ornamental's fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2010.
Required:
1. Prepare the appropriate journal entry for each transaction or event during 2011.
2. Indicate any amounts that Ornamental Insulation would report in its 2011 balance sheet and income statement as a result of these investments.
3. Prepare the appropriate journal entry for each transaction or event during 2012.
4. Indicate any amounts that Ornamental Insulation would report in its 2012 balance sheet and income statement as a result of these investments.