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 $45 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. 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. 10/18/21 Record the purchase of 2 million shares of Millwork Ventures Company common stock for $66 million. 10/31/21 Record the receipt of semiannual interest of $1.8 million from the Kansas Abstractors bonds. 11/01/21 Record the purchase of 10% bonds of Holistic Entertainment Enterprises at their $108 million face value. 11/01/21 Record the entry to adjust to fair value on the date of sale of the Kansas Abstractor bonds. 11/01/21 Record the sale of the investment in Kansas Abstractors bonds. 12/01/21 Record the purchase of 12% bonds of Household Plastics Corporation at their $80 million face value. 12/20/21 Record the purchase of U.S. Treasury bonds for $7.3 million. 12/21/21 Record the purchase of 4 million common shares of NXS Corporation for $50 million. 12/23/21 Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bonds. 12/23/21 Record the sale of the Treasury bonds for $7.7 million. 12/29/21 Record the receipt of cash dividends of $9 million from the Millwork Ventures Company common shares. 12/31/21 Record the accrued interest for Holistic Entertainment bonds. 12/31/21 Record the accrued interest for Household Plastics bonds. 12/31/21 Record the entry to adjust the securities to fair valu
Amalgamated General Corporation is a consulting firm that also offers
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 $45 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. 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. 10/18/21 Record the purchase of 2 million shares of Millwork Ventures Company common stock for $66 million. 10/31/21 Record the receipt of semiannual interest of $1.8 million from the Kansas Abstractors bonds. 11/01/21 Record the purchase of 10% bonds of Holistic Entertainment Enterprises at their $108 million face value. 11/01/21 Record the entry to adjust to fair value on the date of sale of the Kansas Abstractor bonds. 11/01/21 Record the sale of the investment in Kansas Abstractors bonds. 12/01/21 Record the purchase of 12% bonds of Household Plastics Corporation at their $80 million face value. 12/20/21 Record the purchase of U.S. Treasury bonds for $7.3 million. 12/21/21 Record the purchase of 4 million common shares of NXS Corporation for $50 million. 12/23/21 Record the entry to adjust to fair value on the date of sale of the U.S. Treasury bonds. 12/23/21 Record the sale of the Treasury bonds for $7.7 million. 12/29/21 Record the receipt of cash dividends of $9 million from the Millwork Ventures Company common shares. 12/31/21 Record the accrued interest for Holistic Entertainment bonds. 12/31/21 Record the accrued interest for Household Plastics bonds. 12/31/21 Record the entry to adjust the securities to fair valu
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