Exercise 12-3 (Algo) Securities held-to-maturity [LO12-1, 12-2] 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 2024. At November 1, FF&T held $30 million of 25-year, 8% bonds of Convenience, Incorporated, purchased May 1, 2024, 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. November 1 Received semiannual interest of $1.2 million from the Convenience, Incorporated, bonds. December 1 Purchased 10% bonds of Facsimile Enterprises at their $24 million face value, to be held until they mature in 2027. Semiannual interest is payable May 31 and November 30. December 31 Purchased U.S. Treasury bills to be held until they mature in two months for $9.5 million. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 31 were: Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills $26.7 million 24.9 million 9.5 million Required: Prepare the appropriate journal entry for each transaction or event. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Exercise 12-3 (Algo) Securities held-to-maturity [LO12-1, 12-2] 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 2024. At November 1, FF&T held $30 million of 25-year, 8% bonds of Convenience, Incorporated, purchased May 1, 2024, 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. November 1 Received semiannual interest of $1.2 million from the Convenience, Incorporated, bonds. December 1 Purchased 10% bonds of Facsimile Enterprises at their $24 million face value, to be held until they mature in 2027. Semiannual interest is payable May 31 and November 30. December 31 Purchased U.S. Treasury bills to be held until they mature in two months for $9.5 million. December 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 31 were: Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills $26.7 million 24.9 million 9.5 million Required: Prepare the appropriate journal entry for each transaction or event. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Kk.329.
Transcribed Image Text:No
1
2
3
4
5
6
Date
November 01
December 01
December 31
December 31
December 31
December 31
Cash
Interest revenue
Investment in bonds
Cash
Investment in bonds
Cash
Interest receivable
Interest revenue
Interest receivable
Interest revenue
Answer is not complete.
General Journal
No journal entry required
30
3
Debit
1.2
24.0
9.5
0.4
Credit
1.2
24.0
9.5
0.4
![Exercise 12-3 (Algo) Securities held-to-maturity [LO12-1, 12-2]
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 2024. At November 1, FF&T held
$30 million of 25-year, 8% bonds of Convenience, Incorporated, purchased May 1, 2024, 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.
November 1 Received semiannual interest of $1.2 million from the Convenience, Incorporated, bonds.
December 1 Purchased 10% bonds of Facsimile Enterprises at their $24 million face value, to be held until they mature
in 2027. Semiannual interest is payable May 31 and November 30.
December 31 Purchased U.S. Treasury bills to be held until they mature in two months for $9.5 million.
December 31 Recorded any necessary adjusting entry(s) relating to the investments.
The fair values of the investments at December 31 were:
Convenience bonds
Facsimile Enterprises bonds
U.S. Treasury bills
$26.7 million
24.9 million
9.5 million
Required:
Prepare the appropriate journal entry for each transaction or event.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff7373726-0d35-46ca-aa27-97bcf9126f3a%2F6a0a7cd9-0e3d-4f43-86e0-41ebc74775a8%2Fenjwksn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 12-3 (Algo) Securities held-to-maturity [LO12-1, 12-2]
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 2024. At November 1, FF&T held
$30 million of 25-year, 8% bonds of Convenience, Incorporated, purchased May 1, 2024, 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.
November 1 Received semiannual interest of $1.2 million from the Convenience, Incorporated, bonds.
December 1 Purchased 10% bonds of Facsimile Enterprises at their $24 million face value, to be held until they mature
in 2027. Semiannual interest is payable May 31 and November 30.
December 31 Purchased U.S. Treasury bills to be held until they mature in two months for $9.5 million.
December 31 Recorded any necessary adjusting entry(s) relating to the investments.
The fair values of the investments at December 31 were:
Convenience bonds
Facsimile Enterprises bonds
U.S. Treasury bills
$26.7 million
24.9 million
9.5 million
Required:
Prepare the appropriate journal entry for each transaction or event.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers
in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).
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