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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
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 activitles during the last two months of 2021. At November 1, FF&T held $40 million of 20-year, 12% bonds of Convenlence, Inc., purchased May 1, 2021, 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. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. 1 Purchased 15% bonds of Facsimile Enterprises at their $32 million face value, to be held until they mature in 2024. Nov. Dec. 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 $9.3 million. 31 Recorded any necessary adjusting entry(s) relating to the investments. The falr values of the Investments at December 31 were: $36.7 million 32.9 million 9.3 million Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills Required: Prepare the approprlate journal entry for each transaction or event. (If no entry Is requlred for a transactlon/event, select "No Journal entry requlred" in the first account fleld. Enter your answers In mlons rounded to 1 decimal place (I.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 3 6. Record the interest accrued on Facsimile Enterprises bonds. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal
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