Please do not give solution in image format ? Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to timethe company buys and sells securities. The following selected transactions relate to Amalgamated's investment activities during thelast quarter of 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $50 million of 10%bonds of Kansas Abstractors, Incorporated purchased on May 1, 2024 at face value and held in Amalgamated's trading securitiesportfolio. The company's fiscal year ends on December 31.October 18, 2024 Purchased 2 million shares of Millwork Ventures Company common stock for $62 million. Millwork has atotal of 66 million shares issued.Received semiannual interest of $2.5 million from the Kansas Abstractors bonds.Purchased 10% bonds of Holistic Entertainment Enterprises at their $18 million face value, to be helduntil they mature in 2034. Semiannual interest is payable April 30 and October 31.Sold the Kansas Abstractors bonds for $45 million because rising interest rates are expected to causetheir fair value to continue to fall. No unrealized gains and losses had been recorded on these bondspreviously.Purchased 12% bonds of Household Plastics Corporation at their $60 million face value, to be helduntil they mature in 2034. Semiannual interest is payable May 31 and November 30.Purchased U. S. Treasury bonds for $7.4 million as trading securities, hoping to earn profits onshort-term differences in prices.October 31, 2024November 1, 2024November 1, 2024December 1, 2024December 20, 2024December 21, 2024Purchased 4 million shares of NXS Corporation's 52 million shares of common stock for $52 million,planning to hold these shares until market conditions encourage their sale.December 23, 2024 Sold the Treasury bonds for $7.9 million.December 29, 2024 Received cash dividends of $5 million from the Millwork Ventures Company shares of common stock.December 31, 2024 Recorded any necessary adjusting entries relating to the investments. The market price of the MillworkVentures Company common stock was $28.50 per share and $14.00 per share for the NXS Corporation commonstock. The fair values of the bond investments were $58.8 million for Household Plastics Corporationand $16.4 million for Holistic Entertainment Enterprises.January 7, 2025 Sold the NXS Corporation common stock shares for $49 million.Required:Prepare the appropriate journal entry for each transaction or event. Use one summary entry on December 31 to adjust the portfolio ofequity investments to fair value.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not roundintermediate calculations. Enter your answers in millions rounded to 1 decimal place, (i.e., 5,500,000 should be entered as 5.5).View transaction listJournal entry worksheet<12 3 4 5 6 7 8Record the purchase of 2 million shares of Millwork Ventures Companycommon stock for $62 million.Note: Enter debits before credits.DateOctober 18,2024Record entryGeneral JournalClear entry16Debit CreditView general journal

Investment means an asset purchased in expectation of earning a return on such investment in future…

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 2024 and the first month of 2025. The only securities held by Amalgamated at October 1, 2024 were $50 million of 10% bonds of Kansas Abstractors, Incorporated purchased on May 1, 2024 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31. October 18, 2024 Purchased 2 million shares of Millwork Ventures Company common stock for $62 million. Millwork has a total of 66 million shares issued. October 31, 2024 November 1, 2024 November 1, 2024 Received semiannual interest of $2.5 million from the Kansas Abstractors bonds. Purchased 10% bonds of Holistic Entertainment Enterprises at their $18 million face value, to be held until they mature in 2034. Semiannual interest is payable April 30 and October 31. Sold the Kansas Abstractors bonds for $45 million because rising interest rates are expected to cause their fair value to continue to fall. No unrealized gains and losses had been recorded on these bonds

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q