American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences...
70.2K
Verified Solution
Link Copied!
Question
Accounting
American Surety and Fidelity buys and sells securities expecting to earn profits on shortterm differences in price. For the first months of gains from selling trading securities totaled $ million, losses from selling trading securities were $ million, and the company had earned $ million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December and the first week of The company's fiscal year ends on December No trading securities or equity investments were held by American on December Assume that the bonds are purchased at face value. December Purchased FF&G Corporation bonds for $ million. December Purchased million shares of Ferry Intercommunications common stock for $ million. American does not have significant influence over Ferry's operations or policies. December Sold the FF&G Corporation bonds for $ million. December Purchased US Treasury bills for $ million and Treasury bonds for $ million. December Sold half the shares of Ferry Intercommunications common stock for $ million. December Sold the US Treasury bills for $ million. December Sold the Treasury bonds for $ million. December Received cash dividends of $ from the Ferry Intercommunications common stock shares. December Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $ per share. January Sold the remaining Ferry Intercommunications common stock shares for $ million. January Purchased Warehouse Designs Corporation bonds for $ million. Required: Prepare the appropriate journal entry for each transaction or event during including any yearend adjusting entries. Indicate any amounts that American would report in its balance sheet and income statement as a result of these investments. Ignore income taxes. Prepare the appropriate journal entry for each transaction or event during
American Surety and Fidelity buys and sells securities expecting to earn profits on shortterm differences in price. For the first months of gains from selling trading securities totaled $ million, losses from selling trading securities were $ million, and the company had earned $ million in interest revenue. The following selected transactions relate to American's investments in trading securities and equity securities during December and the first week of The company's fiscal year ends on December No trading securities or equity investments were held by American on December Assume that the bonds are purchased at face value.
December Purchased FF&G Corporation bonds for $ million.
December Purchased million shares of Ferry Intercommunications common stock for $ million. American does not have significant influence over Ferry's operations or policies.
December Sold the FF&G Corporation bonds for $ million.
December Purchased US Treasury bills for $ million and Treasury bonds for $ million.
December Sold half the shares of Ferry Intercommunications common stock for $ million.
December Sold the US Treasury bills for $ million.
December Sold the Treasury bonds for $ million.
December Received cash dividends of $ from the Ferry Intercommunications common stock shares.
December Recorded any necessary adjusting entry relating to the remaining investment. The market price of the Ferry Intercommunications stock was $ per share.
January Sold the remaining Ferry Intercommunications common stock shares for $ million.
January Purchased Warehouse Designs Corporation bonds for $ million.
Required:
Prepare the appropriate journal entry for each transaction or event during including any yearend adjusting entries.
Indicate any amounts that American would report in its balance sheet and income statement as a result of these investments. Ignore income taxes.
Prepare the appropriate journal entry for each transaction or event during
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.