$1.$ Problem $12-9($Algo$)$ Securities held$-$to$-$maturity; trading securities and equity investments $[$LO$12-1,12-2,$

$2.12-3,12-5$

$3.$ Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time

$4.$ the company buys and sells securities$.$ The following selected transactions relate to Amalgamated's investment activities during the

$5.$ last quarter of $2024$ and the first month of $2025.$ The only securities held by Amalgamated at October $1,2024$ were $$45$ million of $10\%$

$6.$ bonds of Kansas Abstractors, Incorporated purchased on May $1,2024$ at face value and held in Amalgamated's trading securities

$7.$ portfolio. The company's fiscal year ends on December $31.$

$8.$ October $18,2024$ Purchased $2$ million shares of Millwork Ventures Company common stock for $$59$ million. Millwork has a

$9.$ total of $36$ million shares issued.

$10.$ October $31,2024$ Received semiannual interest of $$1\mathrm{.}8$ million from the Kansas Abstractors bonds.

$11.$ November $1,2024$ Purchased $10\%$ bonds of Holistic Entertainment Enterprises at their $$18$ million face value, to be held

$12.$ until they mature in $2034.$ Semiannual interest is payable April $30$ and $0$ctober $31.$

$13.$ November $1,2024$ Sold the Kansas Abstractors bonds for $$40$ million because rising interest rates are expected to cause

$14.$ their fair value to continue to fall. No unrealized gains and losses had been recorded on these bonds

$15.$ previously.

$16.$ December $1,2024$ Purchased $12\%$ bonds of Household Plastics Corporation at their $$60$ million face value, to be held

$17.$ until they mature in $2034.$ Semiannual interest is payable May $31$ and November $30.$

$18.$ December $20,2024$ Purchased U$.$ S$.$ Treasury bonds for $$5\mathrm{.}9$ million as trading securities$,$ hoping to earn profits on

$19.$ short$-$term differences in prices.

$20.$ December $21,2024$ Purchased $4$ million shares of NXS Corporation's $50$ million shares of common stock for $$50$ million,

$21.$ planning to hold these shares until market conditions encourage their sale.

$22.$ December $23,2024$ Sold the Treasury bonds for $$6\mathrm{.}2$ million.

$23.$ December $29,2024$ Received cash dividends of $$7$ million from the Millwork Ventures Company shares of common stock.

$24.$ December $31,2024$ Recorded any necessary adjusting entries relating to the investments. The market price of the

$25.$ Millwork Ventures Company common stock was $$26\mathrm{.}00$ per share and $$14\mathrm{.}00$ per share for the NXS

$26.$ Corporation common stock. The fair values of the bond investments were $$58\mathrm{.}7$ million for Household

$27.$ Plastics Corporation and $$16\mathrm{.}6$ million for Holistic Entertainment Enterprises.

$28.$ January $7,2025$ Sold the NXS Corporation common stock shares for $$47$ million.

Required:

Prepare the appropriate journal entry for each transaction or event. Use one summary entry on December $31$ to adjust the portfolio of equity investments to fair value.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to $1$ decimal place, $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Choose between

No journal entry required

Cash

Dividend revenue

Fair value adjustment

Gain on investment $($unrealized$,$ NI$)$

Gain on investment $($unrealized$,$ OCI$)$

Insurance expense

Interest receivable

Interest revenue

Investment in bonds

Investment in equity securities

Loss on investment $($unrealized$,$ NI$)$

Loss on investment $($unrealized$,$ OCI$)$

Retained earnings