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 $7 million, losses from selling trading securities were $11 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 $16 million 13 Purchased 2 million shares of Ferry Intercommunications common stock for $30 million Aerican does not have significant influence over Ferry's operations or policies 15 Sold the FF&G Corporation bonds for $16.4 million. 22 Purchased U.S. Treasury bills for $56 million and Treasury bands for 369 million, 23 Sold half the shares of Ferry Intercommunications common stock for $13 million 26 Sold the U.S. Treasury bills for $60 million 27 Sold the Treasury bonds for $65 million. 28 Received cash dividends of $200, eee, from the Ferry Intercomunications con stock shares 31 Recorded any necessary adjusting entry relating to the remaining investment. The market price of the ferry Intercomunications stock was $13 per share. 2022 Jan 2 Sold the resaining Ferry Intercomunications common stock share for $15.4 will on 5. Purchased warehouse Designs Corporation and for 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 Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Prepare the appropriate Journal entry for each transaction or 1, "nh n. HOEN complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2021 including any year-end ad required for a transaction/event, select "No journal entry required" in the first account field. Enter your an decimal place, i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 2 13 3 4 5 6 7 8 Record the purchase 2 million Ferry Intercommunications common shares for $30 million. Note: Enter debits before credits Debit General Journal Date Credit December 13 2021 Records Clare View general journal complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Indicate any amounts that American would report in its 2021 balance sheet and income statement investments. (Amounts to be deducted should be indicated with a minus sign. Enter your answers decimal place, (i.e., 5,500,000 should be entered as 5.5).) 1$ in millions) Balance sheet: Current Assets Total $ 00 Income statement: Other revenue (expenses) Total interest and dividend revenue Gain flossy on investments 0.0 0.0 Required 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is required for a tran "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place, (i. be entered as 5.5).) View transaction list Journal entry worksheet > 2 3 Record the entry to adjust to fair value the investment in Ferry Intercommunications common shares on the date of sale. Notes: Enter debits before credits. General Journal Debit Credit Date January 02, 2022 Record entry Clear enty View general journal
