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 lotaled 54 malion. losses from selling trading securiues were $7 milion, and the company had earned 55 million in interest revenue. The following selected transactions redate fo American/s investments in tradirg . securities and equity securities during December 2024 , and the first week of 2025. The company's fiscal year ends on Decernber 31 No trading securities or equity investments were heid by American on December 1, 2024. Assume that the bonds are purchased at face value Deceaber 12, 2024 purchased Fros Corpocation bonds for $13 mition. Deceitber 13,2024 Purchased 2 mil11on shares of ferey Interconmunicatians conmon stock for. $24 alliton. Acerican doets not have December 35, pignificant Intluence over Ferry's operations or policies. December 15, 2024 5old the FFBG Cerporation bonds for \$13.1 1111 on. December 22, 2024 . Purchased U.S. Treasury bil1s for $50 militon and Treasury bonds for 916 alilion. December 26, 2024 sold half the shares of Ferry Intercumunications combon stock for s9 willing. December 26,2024 sold the U.S. Treasury bills for $51 million. Deceober 27, 2024 sold the Treasury bonds for 564 milion. December 26,2024 Recetved cash dividends of $200,60 fron the ferry interconmunteations common stockishares. December 31,2024 Recorded any necessary adjusting entry relating to the renaining Investinent. The market price of ehe Ferry Interconmunications stock was 39 per share. January 2,2025 sold the remaining Ferry Interconunications common stock shares for s9.1. nil11on. January 5, 2025 Purchased warehouse DesiBns Corporation bonds for \$as milion. Required: 1. Prepare the appropriate joumal 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. 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, (t.e., 5,500,000 should be entered as 5.5). Prepare the appropriate journal entry for each transaction or event during 2024 induding 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. Entes your answers in millions rounded to 1 decimal place, (i.e, 5,500,000 should be entered as 5.5). Journal entry worksheet 4 5 6 7 8113 Record the purchase of FF\&G Corporation bonds for $13 million. Note: Enter debits before eredits. Record the purchase of 2 million Ferry Intercommunications common shares for $24 million. Note: Enter debits before credits. Journal entry worksheet Record the entry to adjust to fair value the investment in FF\&G Corporation bonds on the date of sale. Note: Enter debits before credits. Record the entry for sale of FF\&G Corporation bonds for $13.1 million. Note: Enter debits before credits. Journal entry worksheet 12 7813 Record the purchase of U.S. Treasury bills for $50 million and Treasury bonds for $66 million. Note: Enter debits before credits. Journal entry worksheet Record the entry to adjust to fair value the investment in Ferry Intercommunications common shares on the date of sale. Note: Enter debits before credits. Journal entry worksheet 13 Record the entry for the sale of Ferry Intercommunications common shares for $9 million. Notei Enter debits before credits. Journal entry worksheet Record the entry for the sale of Ferry Intercommunications common shares for $9 million. Note: Enter debits before credits. Journal entry worksheet \begin{tabular}{ll|l|ll} 5 & 5 & 6 & 13 \end{tabular} Record the entry to adjust to fair value the investment in U.S. Treasury bills on the date of sale. Note: Enter debits before credits. Record the entry for the sale of U.S. Treasury bills for $51 million. Note: Enter debits before credits. Journal entry worksheet 156 7 8 Record the entry to adjust to fair value the investment in U.S. Treasury bonds on the date of sale. Note: Enter debits before credits. Journal entry worksheet
