Question

Advance Accounting- Please assist me with these journal entries. Thank you so much

AMGC is a consulting firm that also offers financial services through its credit division                                                      
From time to time the company buys and sells securities inending to earn profits on short term                                                       
differences in price . The following selected to AMGC investment activities during the last quarter of 2013 and                                               
and the first month of 2014. The only securities held by AMDG AT October 1 were $30 Million of 10% bonds of                                                       
KA inc. purchased on May 1 at face value. The company fiscal year ends on December 31           

2013  
  
18-Oct   Purchased 2 million preferred shares of MV Company for $ 58 Million as a speculative
   investment to be sold under suitable circumstances
  
31-Oct   Received semiannual interest of $ 1.5 Million from the KA bonds
  
1-Nov   Purchased 10% bonds HE Enterprises at their $ 18 Milliion face value to be held
   until they mature in 2018. Semiannual interest is payable April 30 and October 31
  
1-Nov   Sold the KA bonds for $28 Million because rising interest rates are expected to cause
   their fair value to continue to fall
  
1-Dec   Purchased 12 % bonds of HPC at their $ 60 Million face value to be held
   until they mature in 2028 . Semianual intrest is payable May 31 and November 30
  
20-Dec   Purchaed US Treasury bonds for $ 5.6 million as trading securities hoping to earn profits
   on their short term differences in prices
  
21-Dec   Purchased 4 million common shares of NXS for $ 44 million as trading securities
   hoping to earn profits on their short term differences in prices
  
23-Dec   Sold the Treasury bonds for $5.7 million
  
29-Dec   Received cash dividends of $3 million from the MVC preferred shares
  
31-Dec   Recorded any necessary adjusting or closing entry(s) relating to the investments
  
   The market price of the MVC preferred shares was $ 27.50 per share
   and $11.50 per share for the NXS corporation common shares
   Thefair values of the Bond investments were $58.7 million for HPC and
   $16.7 million for HE Enterprise
  
2014  
  
7-Jan   Sold the NXS corporation comon shares for $43 million
  
Required:  
   Prepare the appropriate journal entry for each transaction or event

Answer 1

DELIT $ IN HILLION DATE TITLES CREDIT $ IN MILLION 2013 18 Chelser INVESTMENT IN PREFERENCE SHARE OF MY COMPANY DR 5 58 CASH 58 1.5 18 (BEING INVESTMENT IS DONE IN PREFERENCE SHARE HA COMPANY) 2013 CASH DR 31 October INVESTMENT REVENUE (BEING SEMI ANNUAL WITH INTEREST RELIVEO PROM KA BONDS) Rous November INVESTMENT IN HE ENTERPRISES DR CASH ( BEING INVESTMENT IS DONE 10 H. € BONOS) 2013 CASH DR 1 November LOSS ON SALE DR INVESTMENT IN KA BONDS (BEING The Loss APRENED BY SOLDING LA BONDS) 18 30

2015 INVESTMENT JN 2 HPC BONOS GO Oct of CASM (BEING 12% BONDS ARE PURCHASED of Hec) 2015 INVESTMEN JUS TREASURY BR Codecember BONDS 5. KASH 5.6 (BEINU SNVESTMENT IS DONE IN VS TREASURY BONOS) dos INVESTMENT IN NXS COMMON 21 desenho SHARES DR ५५ CASH ५५ 5.7 (BGN INVESTMENT IS DONE IN The COMMON SHARES OF AXS 2013 CASH 23 december INVESTMENT US TREASURY BONDS 4AIN ON SALE (BEING 4AIN IS MADE BY SELLING OUT U.STREASURY BONDS) 01 2013 3. 29 december CASH DR INVESTMENT REVENE 3 ( BEING DIVIDENO FECEIVED FROM MY MV.C PREFRENCE SHARE)

- 2015 0.3 - 31 December Jovestment Revenue fecewale FROM H. ENT ER PRISE (18*to/2in) Tevé st MENT Revenue Relewable FROM H.Pe PR (60 12.11n) INVESTMENT Revenue (BEING INVESTMENT REVENE RECEIVABLE FROM H.E ENTERPRISE ANO HPC) 0.9 ADJUSTMENT ENTRIBS 2013 331 december NET IFOLDINY UN REALISED GANS OR Loses (2497.5-58) FAIR VALUE ADJUSTMENT 3 FAIR VALUE ADJUSTMENT DR 2 NET HOLDINY UN REALISED 461NS OR Loses 2 2 ENTRIES FOR CLOSING NET HOLDING ONREALISED GAINS OR LOIES OR INVESTMENT REvEwe (3+1:5709) DR 5.4 hain ON SALE OP JWE STMENTS DR 01 Loss ON SALE of INVESTMENTS 5.5 INCOME SUMMARY (BEING THE INCOME SUMMARY IS CALCULATED)

DR ३ 2014 CASA 27 Januany LOSE ON SALE ५५ INVESTMENT IN N.X.S BEING THE LOSS MADE BY SELLING NXS CORPORATION (IMMON SHARE) ANDR2