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American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2018, gains

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American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2018, gains lom selling trading securities totaled $4 million, losses were $11 million, and the company had earned $5 million in investment revenue. The following selected transactions relate to American's trading account and equity securities investment account during December 2018, and the first week of 2019. The company's fiscal year ends on December 31. No trading securities were held by American on December 1, 2018. 2018 Dee. 12 Purchased PTG Corporation bonds for $21 million 13 Purchased 2 million Terry Intercommunications common shares for $26 million 15 sold the TPLG Corporation bonds for $21.9 million 22 Purchased 1.3. Treasury bills for $66 million and Treasury bonds for $74 million. 23 Sold halt the Ferry Intercommunications common shares for $11 million 26 Sold the U.5. Treasury bills for $69 million 27 Sold the Treasury bonds for $72 million 28 Received cash dividends of $200,000 from the Perry Intercommunications common shares. 31 Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Yerry Intercommunications stock was $11 per share. 2019 Jan. 2 sold the remaining Yerry Intercommunications connon shares for $11.4 million 5 Purchased Warehouse Designs Corporation bonds for $43 million. Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, 2. Indicate any amounts that American would report in its 2018 balance sheet and income statement as a result of these investments, 3. Prepare the appropriate journal entry for each transaction or event during 2019. 5 Required 1 Requindd 2 Required 3 Required 2 Indicate any amounts that American would report in its 2018 balance sheet and income statement as a result of these Investments. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions rounded to 1 decimal place, (l.e., 5,500,000 should be entere as 5.5).) 5.25 points (5 in millions) eBook Balance sheet (short-term investment): ASK References Total Income statement: Required 3 points View transaction list eBook Ask Journal entry worksheet References

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