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American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2021. gains

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American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2021. gains from selling trading securities totaled $6 million, losses from selling trading securities were $12 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 2021, and the first week of 2022. The company's fiscal year ends on December 31. No trading securities or equity Investments were held by American on December 1, 2021. Assume that the bonds are purchased at face value 2021 Dec. 12 Purchased FF&G Corporation bonds for $23 million 13 Purchased 2 million shares of Ferry Intercommunications common stock for $30 million. American does not have significant influence over Ferry's operations or policies. 15 Sold the FFG Corporation bonds for $23.2 million 22 Purchased 0.5. Treasury bills for $70 million and Treasury bonds for $76 million 23 Sold half the shares of Terry Intercomunications common stock for $10 million 26 Sold the U.S. Treasury bills for $75 million 27 Sold the Treasury bonds for $73 million 28 Received cash dividends of $200,000 from the Ferry Intercommunications coomon stock shares. 31 Recorded any necessary adjusting entry relating to the remaining Investment. The market price of the Ferry Intercommunications stock was $10 per share, 2022 Jan. 2. Sold the remaining Feery Intercomunications common stock shares for $10.1 sillion 5 Purchased Warehouse Designs Corporation bonds for $45 million Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021 including any year end adjusting entries. 2. Indicate any amounts that American would report in its 2021 balance sheet and income statement as a result of these investments 3. Prepare the appropriate journal entry for each transaction or event during 2022

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