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 $5 million, losses from selling trading securities were $15 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 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. December 12, 2024 Purchased FF&G Corporation bonds for $17 million. December 13, 2024 es December 15, 2024 December 22, 2024 December 23, 2024 December 26, 2024 December 27, 2024 Purchased 2 million shares of Ferry Intercommunications common stock for $24 million. American does not have significant influence over Ferry's operations or policies. Sold the FF&G Corporation bonds for $17.9 million. Purchased U.S. Treasury bills for $84 million and Treasury bonds for $83 million. Sold half the shares of Ferry Intercommunications common stock for $11 million. Sold the U.S. Treasury bills for $90 million. Sold the Treasury bonds for $82 million. December 28, 2024 Received cash dividends of $200,000 from the Ferry Intercommunications common stock shares. December 31, 2024 Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $11 per share. January 2, 2025 Sold the remaining Ferry Intercommunications common stock shares for $11.3 million. January 5, 2025 Purchased Warehouse Designs Corporation bonds for $52 million. Required: 1. Prepare the appropriate journal entry for each transaction or event during 2024 including any year-end adjusting entries. 2. Indicate any amounts that American would report in its 2024 balance sheet and income statement as a result of these investments. Ignore income taxes. 3. Prepare the appropriate journal entry for each transaction or event during 2025. ook int 10 10 December 27, 2024 Loss on investment (unrealized, NI) Fair value adjustment ences 11 December 27, 2024 Cash Fair value adjustment Investment in bonds 12 December 28, 2024 Cash Dividend revenue 13 December 31, 2024 Loss on investment (unrealized, NI) Fair value adjustment 1.0 10 1.0 82.0 1.0 83.0 0.2 0.2 + ok Balance sheet: Current Assets Investments in equity securities Less: Fair value adjustment Total Income statement: Other revenue (expenses): ht nces Interest revenue (first 11 months) Dividend revenue (December) Total interest and dividend revenue Gain (loss) on investments: Gain on investments (December) Gain on investments (first 11 months) Loss on investments (December) Loss on investments (first 11 months) Net loss on investments ($ in millions) $ 0.0 $ 0.0 0.0 Total other revenue (expenses) < Required 1 Required 3 > 4 View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 January 02, 2025 Fair value adjustment Gain on investment (unrealized, NI) 2 January 02, 2025 Cash look int- ences 3 Fair value adjustment Investment in equity securities January 05, 2025 Investment in bonds Cash < Required 2 Required 3 >