American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2021. gains from selling trading securities totaled $8 million, losses from selling trading securities were $11 million, and the company had earned $5 million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December 2021, and the first week of 2022. The company's fiscal year ends on December 31. No trading securities or equity investments were held by American on December 1, 2021. Assume that the bonds are purchased at face value 2021 Dec. 12 Purchased FF&G Corporation bonds for $12 million. 13 Purchased 2 million shares of Ferry Intercommunications common stock for $22 million. American does not have significant influence over Ferry's operations or policies. 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 shares of Ferry Intercommunications common stock 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 stock shares. 31 Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $10 per share. 2022 Jan. 2 Sold the remaining Ferry Intercommunications common stock 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 2021 including any year-end adjusting entries. 2. Indicate any amounts that American would report in its 2021 balance sheet and income statement as a result of these investments. 3. Prepare the appropriate journal entry for each transaction or event during 2022 Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2021 including any year-end adjusting entries. (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).) No Date General Journal Credit Debit 12.0 1 December 12, 202 Investment in bonds Cash 12.0 2 220 December 13, 202 Investment in equity securities Cash December 15, 202 Fair value adjustment Gain on investment (unrealized, NI) December 15, 202 Cash Investment in bonds Fair value adjustment December 22, 202 Investment in bonds 121.0 5 December 22, 202 Investment in bonds 121.0 Cash 121.0 6 December 23, 202 Loss on investment (unrealized, NI) Fair value adjustment 10 December 23, 202 Cash 10.0 1.0 Fair value adjustment Investment in equity securities 11.0 1.0 December 26, 202 Fair value adjustment Gain on investment (unrealized, NI) 10 9 57.0 December 26, 202 Cash Investment in bonds Fair value adjustment 56.0 OO 10 December 27, 202 Loss on investment (unrealized, NI) 20 Fair value adjustment Gain on investment (unrealized, NI) 1.00 9 December 26, 202 Cash o 57.00 56.0 Investment in bonds Fair value adjustment 1.0 10 December 27, 202 Loss on investment (unrealized, NI) 2.0 Fair value adjustment 11 December 27, 202 Cash 63.0 20 Fair value adjustment Investment in bonds 65.0 12 December 28, 202 Cash Dividend revenue 13 December 31, 202 Loss on investment (unrealized, NI) 1.0 Fair value adiustment $ In millions) Balance sheet: Current Assets Investments in equity securities Less: Fair value adjustment $ 11.0 1.0 10.0 Total $ Income statement: Other revenue (expenses): Dividend revenue (December) Interest revenue (first 11 months) Total interest and dividend revenue Gain (loss) on investments: Gain on investments (December) Loss on investments (December) 0.2 5.0 5.2 1.1 (4.0) (2.9) | Total other revenue (expenses) Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is required for a cransaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded decimal place, i.e., 5,500,000 should be entered as 5.5).) No Credit Date General Journal January 02, 2022 Fair value adjustment Gain on investment (unrealized, NI) Debit 02 0.2 2 January 02, 2022 Cash Fair value adjustment Investment in equity securities 102 0.8 34.0 January 05, 2022 Investment in bonds Cash 34.0