Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
American Surety and Fidelity buys and sells securities expecting to earn profits on short - term differences in price. For the first 1 1 months
American Surety and Fidelity buys and sells securities expecting to earn profits on shortterm differences in price. For the first months of gains from selling trading securities totaled $ million, losses from selling trading securities were $ million, and the company had earned $ million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December and the first week of The company's fiscal year ends on December No trading securities or equity investments were held by American on December Assume that the bonds are purchased at face value. December Purchased FF&G Corporation bonds for $ million. December Purchased million shares of Ferry Intercommunications common stock for $ million. American does not have significant influence over Ferry's operations or policies. December Sold the FF&G Corporation bonds for $ million. December Purchased US Treasury bills for $ million and Treasury bonds for $ million. December Sold half the shares of Ferry Intercommunications common stock for $ million. December Sold the US Treasury bills for $ million. December Sold the Treasury bonds for $ million. December Received cash dividends of $ from the Ferry Intercommunications common stock shares. December Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $ per share. January Sold the remaining Ferry Intercommunications common stock shares for $ million. January Purchased Warehouse Designs Corporation bonds for $ million. Required: Prepare the appropriate journal entry for each transaction or event during including any yearend adjusting entries. Indicate any amounts that American would report in its 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
American Surety and Fidelity buys and sells securities expecting to earn profits on shortterm differences in price. For the first months of gains from selling trading securities totaled $ million, losses from selling trading securities were $ million, and the company had earned $ million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December and the first week of The company's fiscal year ends on December No trading securities or equity investments were held by American on December Assume that the bonds are purchased at face value.
December Purchased FF&G Corporation bonds for $ million.
December Purchased million shares of Ferry Intercommunications common stock for $ million. American does not have significant influence over Ferry's operations or policies.
December Sold the FF&G Corporation bonds for $ million.
December Purchased US Treasury bills for $ million and Treasury bonds for $ million.
December Sold half the shares of Ferry Intercommunications common stock for $ million.
December Sold the US Treasury bills for $ million.
December Sold the Treasury bonds for $ million.
December Received cash dividends of $ from the Ferry Intercommunications common stock shares.
December Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $ per share.
January Sold the remaining Ferry Intercommunications common stock shares for $ million.
January Purchased Warehouse Designs Corporation bonds for $ million.
Required:
Prepare the appropriate journal entry for each transaction or event during including any yearend adjusting entries.
Indicate any amounts that American would report in its 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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Management And Organisational Behaviour
Authors: Laurie Mullins
7th Edition
9780273688761
