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 from selling trading securities totaled $8 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
Dec.		12		Purchased FF&G Corporation bonds for $12 million.
		13		Purchased 2 million Ferry Intercommunications common shares for $22 million.
		15		Sold the FF&G Corporation bonds for $12.1 million.
		22		Purchased U.S. Treasury bills for $56 million and Treasury bonds for $65 million.
		23		Sold half the Ferry Intercommunications common shares for $10 million.
		26		Sold the U.S. Treasury bills for $57 million.
		27		Sold the Treasury bonds for $63 million.
		28		Received cash dividends of $200,000 from the Ferry Intercommunications common shares.
		31		Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Ferry Intercommunications stock was $10 per share.

2019
Jan.		2		Sold the remaining Ferry Intercommunications common shares for $10.2 million.
		5		Purchased Warehouse Designs Corporation bonds for $34 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.

1 Record the purchase FF&G Corporation bonds for $12 million 2 Record the purchase 2 million Ferry Intercommunications common shares for $22 million 3 Record the entry to adjust to fair value on the date of sale of the FF&G Corporation bonds 4 Record the entry for sale FF&G Corporation bonds for $12.1 million. Record the purchase U.S. Treasury bills for $56 million and Treasury bonds for $65 million 5 6 Record the entry to adjust to fair value on the date of sale of the Ferry Intercommunications common shares Record the entry for sale Ferry Intercommunications common shares for $10 million. 7 8 Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bills Record the entry for sale U.S. Treasury bills for $57 million 9 Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bonds 10 11 Record the entry for sale Treasury bonds for $63 million. 12 Record the entry for cash dividend received of $200,000 from the Ferry Intercommunications common shares 13 Record the entry for Fair-value adjustment. ($ in millions) Balance sheet (short-term investment): 0.0 Total Income statement: 1 Record the entry to adjust to fair value on the date of sale of the Ferry Intercommunications common shares 2 Record the sale of the remaining Ferry Intercommunications common shares for $10.2 million 3 Record the purchase of the Warehouse Designs Corp oration bonds for $34 million