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 2021. At November 1, FF&T held $40 million of 20-year, 12% bonds of Convenience, 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. Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. Dec. 1 Purchased 15% bonds of Facsimile Enterprises at their $32 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 $9.3 million. 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 $36.7 million 32.9 million 9.3 million Required: Prepare the appropriate journal entry for each transaction or event. (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 (l.e., 5,500,000 should be entered as 5.5).)
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 2021. At November 1, FF&T held $40 million of 20-year, 12% bonds of Convenience, 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. Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds. Dec. 1 Purchased 15% bonds of Facsimile Enterprises at their $32 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 $9.3 million. 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 $36.7 million 32.9 million 9.3 million Required: Prepare the appropriate journal entry for each transaction or event. (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 (l.e., 5,500,000 should be entered as 5.5).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 2021. At November 1, FF&T held $40
million of 20-year, 12% bonds of Convenience, 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.
Nov. 1 Received semiannual interest of $2.4 million from the Convenience, Inc., bonds.
Dec. 1 Purchased 15% bonds of Facsimile Enterprises at their $32 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 $9.3 million.
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.
Required:
Prepare the appropriate journal entry for each transaction or event. (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 (l.e., 5,500,000 should be
entered as 5.5).)
View transaction list
Journal entry worksheet
<
1
2
Date
Nov 01
$36.7 million
32.9 million
9.3 million
Received semiannual interest of $2.4 million from the Convenience, Inc.,
bonds.
Note: Enter debits before credits.
3 4 5 6
Record entry
General Journal
Clear entry
Debit Credit
View general journal
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