value: 10.00 points Problem 12-7 Securities held-to-maturity, securities available for sale, and trading securities [LO12-1, 12-2,12-3] 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 intending to earn profits on short-term ifferences in price. during the last quarter of 2016 and the first month of 2017. The only securities held by Amalgamated at October 1 were $45 million of 10% bonds of Kansas Abstractors, Inc., purchased on May 1 at face value The company's fiscal year ends on December 31 The following selected transactions relate to Amalgamated's investment activities 2016 Oct. 18 Purchased 2 million preferred shares of Millwork Ventures Company for $59 million as a speculative investment to be sold under suitable circumstances. 31 Received semiannual interest of $1.8 million from the Kansas Abstractors bonds Nov. 1 Purchased 10% bonds of Holistic Entertainment Enterprises at their $108 million face value, to be held until they mature in 2018. Semiannual interest is payable April 30 and October 31 cause their fair value to continue to fall until they mature in 2028. Semiannual interest is payable May 31 and November 30 short-term differences in prices hoping to earn profits on short-term differences in prices 1 Sold the Kansas Abstractors bonds for $41 million because rising interest rates are expected to Dec. 1 Purchased 12% bonds of Household Plastics Corporation at their $80 million face value, to be held 20 Purchased U. S. Treasury bonds for $7.3 million as trading securities, hoping to earn profits on 21 Purchased 4 million common shares of NXS Corporation for $50 million as trading securities, 29 Received cash dividends of $3 million from the Millwork Ventures Company preferred shares 23 Sold the Treasury bonds for $7.7 million 31 Recorded any necessary adjusting entry(s) and closing entries relating to the investments. The market price of the Millwork Ventures Company preferred stock was $28.50 per share and $14.50 per share for the NXS Corporation common. The fair values of the bond investments were $57.6 million for Household Plastics Corporation and $18.4 million for Holistic Entertainment Enterprises. 2017 Jan. 7 Sold the NXS Corporation common shares for $46 million Required Prepare the appropriate journal entry for each transaction or event. (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, (i.e., 5,500,000 should be entered as 5.5).) Import a new list 15 1 Record the purchase of 2 million preferred shares of Millwork Ventures Company for $59 million. 2 Record the receipt of semiannual interest of $1.8 million from the Kansas Abstractors bonds. 3 Record the purchase of 10% bonds of Holistic Entertainment Enterprises at their $108 million face value. Credit Record the sale of the investment in Kansas Abstractors bonds 4 Record the purchase of 12% bonds of Household Plastics Corporation at their $80 million face value. 5 Note:-journal entry has been entered X: Import a new list 15 6 Record the purchase of U.S. Treasury bonds for $7.3 million 7 Record the purchase of 4 million common shares of NxS Corporation for $50 million. 8 Record the sale of the Treasury bonds for $7.7 million./ Credit Record the receipt of cash dividends of $3 million from the Millwork Ventures Company preferred shares. 9 10 Record the investment revenue 11 Record any necessary fair value adjustment related to the Millwork Venture shares when the fair value was $28.50 per share 12 Record any necessary fair value adjustment related to the NXS shares when the fair value was $14.5 per share. 13 Record the closing entry 14 Record the sale of the NXS Corporation common shares Credit for $46 million. 15 Record the fair value adjustment Note:-journal entry has been entered Record entry Clear entry View general journal