Journal Entry for December 31st only please.Don't give answer in image format Amalgamated General Corporation is a consulting firm that also offers financial services through its credit division. From time to time the companybuys and sells securities. The following selected transactions relate to Amalgamated's investment activities during the last quarter of 2021 and the firstmonth of 2022. The only securities held by Amalgamated at October 1, 2021 were $30 million of 10% bonds of Kansas Abstractors, Inc., purchased onMay 1, 2021 at face value and held in Amalgamated's trading securities portfolio. The company's fiscal year ends on December 31.2021Oct. 1831Nov. 11Dec. 12021232931Purchased 2 million shares of Millwork Ventures Company common stock for $58 million. Millwork has a total of 30 millionshares issued.Received semiannual interest of $1.5 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 in2031. Semiannual interest is payable April 30 and October 31.Sold the Kansas Abstractors bonds for $28 million because rising interest rates are expected to cause their fair value tocontinue to fall. No unrealized gains and losses had been recorded on these bonds previously.Purchased 12% bonds of Household Plastics Corporation at their $60 million face value, to be held until they mature in2031. Semiannual interest is payable May 31 and November 30.Purchased U. S. Treasury bonds for $5.6 million as trading securities, hoping to earn profits on short-term differences inprices.Purchased 4 million shares of NXS Corporation's 50 million shares of common stock for $44 million, planning to hold theseshares until market conditions encourage their sale.Sold the Treasury bonds for $5.7 million.Received cash dividends of $3 million from the Millwork Ventures Company shares of common stock.Recorded any necessary adjusting entries relating to the investments. The market price of the Millwork Ventures Companycommon stock was $27.50 per share and $11.50 per share for the NXS Corporation common stock. The fair values of thebond investments were $58.7 million for Household Plastics Corporation and $16.7 million for Holistic EntertainmentEnterprises.

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Answered: Journal Entry for December 31st

Business

Accounting

Journal Entry for December 31st

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PA: Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The...

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