FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investment objectives. The following selected transactions relate to FF&T’s investment activities during the last twomonths of 2018. At November 1, FF&T held $48 million of 20-year, 10% bonds of Convenience, Inc., purchasedMay 1, 2018, at face value. Management has the positive intent and ability to hold the bonds until maturity.FF&T’s fiscal year ends on December 31.Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds.Dec. 1 Purchased 12% bonds of Facsimile Enterprises at their $30 million face value, to be held untilthey mature in 2024. Semiannual interest is payable May 31 and November 30.31 Purchased U.S. Treasury bills to be held until they mature in two months for $8.9 million.31 Recorded any necessary adjusting entry(s) relating to the investments.The fair values of the investments at December 31 were:Convenience bonds $44.7 millionFacsimile Enterprises bonds 30.9 millionU.S. Treasury bills 8.9 millionRequired:Prepare the appropriate journal entry for each transaction or event.
FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investment objectives. The following selected transactions relate to FF&T’s investment activities during the last two
months of 2018. At November 1, FF&T held $48 million of 20-year, 10% bonds of Convenience, Inc., purchased
May 1, 2018, at face value. Management has the positive intent and ability to hold the bonds until maturity.
FF&T’s fiscal year ends on December 31.
Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds.
Dec. 1 Purchased 12% bonds of Facsimile Enterprises at their $30 million face value, to be held until
they mature in 2024. Semiannual interest is payable May 31 and November 30.
31 Purchased U.S. Treasury bills to be held until they mature in two months for $8.9 million.
31 Recorded any necessary
The fair values of the investments at December 31 were:
Convenience bonds $44.7 million
Facsimile Enterprises bonds 30.9 million
U.S. Treasury bills 8.9 million
Required:
Prepare the appropriate
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