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Problem 12-9 (Algo) Securities held-to-maturity; trading securities and equity investments (L012-1, 12-2, 12-3, 12-5) Amalgamated General Corporation is a consulting firm that also offers financial

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Problem 12-9 (Algo) Securities held-to-maturity; trading securities and equity investments (L012-1, 12-2, 12-3, 12-5) Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the first month of 2022. The only securities held by Amalgamated at October 1, 2021 were $38 million of 10% bonds of Kansas Abstractors, Inc. purchased on May 1, 2021 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. 2021 Oct. 18 Purchased 2 million shares of Millwork Venture Company common stock for $60 million. Millwork has a total of 38 million shares inued. 31 Received semiannual interent of $1.9 million from the Kansas Abstractors bonde. Nov. 1 Purchased 104 bonds of Holistic Intertainment Enterprison at their $18 million face value to be held until they nature in 2031. Semiannual interest is payable April 30 and October 31. 1 sold the Kansas Abstractors bonds for $36 million because rising interest rates are expected to cause their fair value to continue to fall. No unrealised gains and losses had been recorded on these bonds previously. Dee. 1 Purchased 120 bonds of Household Planties Corporation at their $60 million face value, to be held until they nature in 2031. Semiannual interest is payable May 31 and November 30. 20 Purchased v. $. Treasury bonde for $6.0 million trading securities, hoping to earn profite on short-term differences in prices. 21 Purchased 4 million shares of sxs Corporation'52 million shares of common stock for $52 million, planning to hold these whares until market conditions encourage their wale. 2) Sold the Treasury bonds for $6.4 million 29 Received cash dividends of $3 million from the Millwork Ventures Company shares of common stock. 31 Recorded any necessary adjusting entries relating to the investments. The market price of the Millwork Ventures Company common stock was $27.50 per mhare and $14.00 per bare for the Nxs Corporation common stock. The fair values of the bond investments were $59.1 million for Household Plastics Corporation and $16.6 million for Holistic Entertainment Enterprises 2022 Jan. 7 told the sxs Corporation common took shares for $48 million Required: Prepare the appropriate journal entry for each transaction or event. Use one summary entry on December 31 to adjust the portfolio of equity investments to fair value. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round Intermediate calculations. Enter your answers in millions rounded to 1 decimal place, (le, 5,500,000 should be entered as 5.5).) Prey 1 of 2 Next >

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