Help Save & Exit Submit American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2018, gains from selling trading securities totaled $4 million, losses were $11 million, and the company had earned $5 million in investment revenue. The following selected transactions relate to American's trading account and equity securities investment account during December 2018, and the first week of 2019. The company's fiscal year ends on December 31. No trading securities were held by American on December 1, 2018 2018 Dec. 12 Purchased TT&G Corporation bonds for $21 million. 13 Purchased 2 million Perry Intercomunications common shares for $26 million 15 Sold the YPG Corporation bonds for $21.9 million. 22 Purchased U.S. Treasury bills for $66 million and Treasury bonds for $74 million. 23 Sold half the Ferry Intercomunications common shares for $11 million. 26 sold the U.S. Treasury bills for $69 million. 27 Sold the Treasury bonds for $72 million. 28 Received cash dividends of $200,000 from the Ferry Intercommunications common shares. 31 Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Perry Intercommunications stock was $11 per share. 2019 Jan. 2 sold the remaining Perry Intercomunications common shares for $11.4 million. 5 Purchased Warehouse Designs Corporation bonds for $43 million. Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018. 2. Indicate any amounts that American would report in its 2018 balance sheet and income statement as a result of these investments. 3. Prepare the appropriate journal entry for each transaction or event during 2019 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 2018. (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, (.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet View transaction list Journal entry worksheet Journal entry worksheet View transaction list Journal entry worksheet ..... 6 7 8 9 10 11 12 13 B Record the entry for Fair-value adjustment. Note: Enter debits before credits Date General Journal Debit Credit December 31, 2018