Problem 12-8 (Algo) Various transactions relating to trading securities and equity investments [LO12-1, 12-3, 12-5) 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 $14 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 FF56 Corporation bonds for $24 million. 13 Purchased 2 million shares of Ferry Intercomunications common stock for $22 million. American does not have significant influence over Ferry's operations or policies. 15 Sold the FF&G Corporation bonds for $24.3 million. 22 Purchased U.S. Treasury bills for $72 million and Treasury bonds for $77 million. 23 Sold half the shares of Ferry Intercommunications common stock for $10 million. 26 Sold the 0.5. Treasury bills for $78 million. 27 Sold the Treasury bonds for $74 million. 28 Received cash dividends of $200,000 from the Ferry Intercommunications common 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. 25o1d the remaining Ferry Tntercomunications comon stock shares for $10.2 million. 5 Purchased Warehouse Designs Corporation bonds for 546 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 Record the purchase FF&G Corporation bonds for $24 million. Journal entry worksheet ..... Record the entry to adjust to fair value the investment in FF&G Corporation bonds on the date of sale. 0 @ 4 6 6 0 0 ..... > Record the entry for sale FF&G Corporation bonds for $24.3 million Enten dahta habara KOO O O 5 OOO.... , 6 7 w 8 ..... Record the purchase U.S. Treasury bills for $72 million and Treasury bonds for $77 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 dehits Journal entry worksheet Record the entry for the sale of Ferry Intercommunications common shares for $10 million. Note: Enter debits before credits OU 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. View transaction list Journal entry worksheet 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 TO .... O O O O O A... ) Record the entry for the sale of U.S. Treasury bonds for $74 million. Journal entry worksheet so....O O O O O 12 > Record the entry for cash dividend received of $200,000 from the Ferry Intercommunications common shares. Journal entry worksheet Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021 including 2. Indicate any amounts that American would report in its 2021 balance sheet and income st 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 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is re "No lournal entry required in the first account field. Enter your answers in millions rounded to 10 be entered as 5.5).) View transaction list 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. General Journal Date January 02, 2022 Debit Credit Recorded Clear entry View general journal Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021 including 2. Indicate any amounts that American would report in its 2021 balance sheet and income! 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 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is "No journal entry required in the first account field. Enter your answers in millions rounded to be entered as 5.5).) View transaction list Journal entry worksheet Record the sale of the remaining Ferry Intercommunications common shares for $10.2 million. Note: Enter debits before credits. Date General Journal Debit Credit January 02, 2022 Record entry Clear entry View general journal Record the entry to adjust to fair value the investment in FF&G Corporation bonds on the date of sale. 0 @ 4 6 6 0 0 ..... > Record the entry for sale FF&G Corporation bonds for $24.3 million Enten dahta habara KOO O O 5 OOO.... , 6 7 w 8 ..... Record the purchase U.S. Treasury bills for $72 million and Treasury bonds for $77 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 dehits Journal entry worksheet Record the entry for the sale of Ferry Intercommunications common shares for $10 million. Note: Enter debits before credits OU 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. View transaction list Journal entry worksheet 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 TO .... O O O O O A... ) Record the entry for the sale of U.S. Treasury bonds for $74 million. Journal entry worksheet so....O O O O O 12 > Record the entry for cash dividend received of $200,000 from the Ferry Intercommunications common shares. Journal entry worksheet Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021 including 2. Indicate any amounts that American would report in its 2021 balance sheet and income st 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 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is re "No lournal entry required in the first account field. Enter your answers in millions rounded to 10 be entered as 5.5).) View transaction list 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. General Journal Date January 02, 2022 Debit Credit Recorded Clear entry View general journal Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021 including 2. Indicate any amounts that American would report in its 2021 balance sheet and income! 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 1 Required 2 Required 3 Prepare the appropriate journal entry for each transaction or event during 2022. (If no entry is "No journal entry required in the first account field. Enter your answers in millions rounded to be entered as 5.5).) View transaction list Journal entry worksheet Record the sale of the remaining Ferry Intercommunications common shares for $10.2 million. Note: Enter debits before credits. Date General Journal Debit Credit January 02, 2022 Record entry Clear entry View general journal