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 $4 million, losses from selling trading 5ecuritie5 were $7 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 equify investments were held by American on December 1, 2024, Assume that the bonds are purchased ot face value. December 12, 2024 Purchased FFSG Corporation bonds for $12 miltion. December 13, 2024 Purchased 2 million shares of Ferry Intercommunications comon 5tock for 524 miltion. American does not have significant inftuence over Ferry's operations or policies. December 15, 2024 Sold the FFEG Corporation bonds for $12.4 million. Decenber 22, 2024 Purchased U.5. Treasury bills for $74 miltion and Treasury bonds for $78 miltion. Decenber 23, 2024 Sold hatf the shares of Ferry Intercomunications comson stock for 511 mitlion. December 26,2024 Sold the U.S. Treasury bills for $75 pillion. Decenber 27,2024 sold the Treasury bonds for $76 sillion. Decesber 28, 2024 Received cash dividends of 5200 , eea from the Ferry Intercommications conmon stock shares. Decenber 31, 2024 Recorded any necessary adjusting entry relating to the realining investacnt. The narket price of the Ferry Interconnunications stock was $11 per share. January 2, 2025 Sold the renaining Ferry Interconnunications connon stock shares for $11,3 oililion. January 5, 2025 Purchased Warehouse Designs Corporation bonds for $47 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. 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, (1.e, 5,500,000 should be entered as 5.5). Indicate any amounts that American would report in its 2024 balance sheet and income statement as a result of these investments. Ignore income taxes. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in milions rounded to 1 decimal place, (t.e., 5,500,000 should be entered as 5.5). Prepare the appropriate journal entry for each transaction or event during 2025. 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 5.5 )
