American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2024 , gains from selling trading securities totaled $4 million, losses from selling trading securities were $7 million, and the company had eamed $5 million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December 2024, and the first week of 2025 . The company's fiscal year ends on December 31 . No trading securities or equity investments were held by American on December 1, 2024. Assume that the bonds are purchased at face value. Decenber 12, 2024 Purchased FFsc Corporation bonds for $13 m1tlion. Deceeber 13, 2024 Purchased 2 miltion shares of Ferry Intercommunications comon stock for $24 million. Anerican does not have significant influence over Ferry's operations or policies. December 15, 2224 Sold the FF6G Corporation bonds for 513.1 million. Decenber 22, 2024 Purchased U.S. Treasury bitls for $50 mitlion and Treasury bonds for $66 million. December 23, 2024 Sold half the shares of Ferry Intercommunications comnon stock for $9million. december 26, 2024 Sold the U.S. Treasury bilts for $51 million. becenber 27, 2024 sold the Treasury bonds for $64million. Decenber 28, 2024 Received cash dividends of 5200,080 from the Ferry Interconnunications conmon stock shares. December 31,2024 Recorded any necessary adjusting entry relating to the remaining investment, The market price of the Ferry intercommunications stock was \$9 per share. January 2, 2325 Sold the renaining ferry Intercomnunications comon stock shares for 59.1 mitlion. January 5, 2025 Purchased Warehouse Designs Corporation bonds for $35 mitlion. Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024 including any year-end adjusting entries. 2. Indicate any amounts that American would report in its 2024 balance sheet and income statement as a result of these investments. Ignore income taxes. 3. Prepare the appropriate journal entry for eoch transaction or event during 2025. Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry for each transaction or event during 2025. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i.e, 5,500,000 should be entered as 5.5). Journal entry worksheet Record the enjyy to adjust to fair value the investment in Ferry Intercommunications common shares on the date of sale. Note Finter icbits before ciod ta
