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 $$7$ million, losses from selling trading securities were $$14$ 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 $$24$ million.

December $13,2024$ Purchased $2$ million shares of Ferry Intercommunications common stock for $$22$ million. American does not have

significant influence over Ferry's operations or policies.

December $15,2024$ Sold the FF&G Corporation bonds for $$24\mathrm{.}3$ million.

December $22,2024$ Purchased U$.$S$.$ Treasury bills for $$72$ million and Treasury bonds for $$77$million.

December $23,2024$ Sold half the shares of Ferry Intercommunications common stock for $$10$million.

December $26,2024$ Sold the U$.$S$.$ Treasury bills for $$78$ million.

December $27,2024$ Sold the Treasury bonds for $$74$ 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 $$10$ per share.

January $2,2025$ Sold the remaining Ferry Intercommunicat ions common stock shares for $$10\mathrm{.}2$ million.

January $5,2025$ Purchased Warehouse Designs Corporation bonds for $$46$milli ion.

Required:

Prepare the appropriate journal entry for each transaction or event during $2024$ including any year$-$end adjusting entries.

Indicate any amounts that American would report in its $2024$ balance sheet and income statement as a result of these

investments. Ignore income taxes.

Prepare the appropriate journal entry for each 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 $2024$ including any year$-$end adjusting entries.

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 $5\mathrm{.}5).$