eztomheducationcom 1000 points FFT Corporation is a confecti

ezto.mheducation.com 10.00 points 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 2016 At November 1, FF&T; held $75 milion of 30-year, 8% bonds of Convenience, Inc. purchased May 1, 2016, 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 $3.0 million from the Convenience, Inc, bonds Dec. 1 Purchased 10% bonds of Facsimile Enterprises at their $72 million face value, to be held until they mature in 2026. Semiannual interest is payable May 31 and November 30. 31 Purchased U.S. Treasury bills that mature in two months for $10.7 milion. 31 Recorded any necessary adjusting entry(s) relating to the investments The fair values of the investments at December 31 were: $71.7 milion Convenience bonds Facsimile Enterprises bonds 72.9 milion U.S. Treasury bills 10.7 million Required Prepare the appropriate jourmal entry for each transaction or event. (If no entry is required fora transactionlevent, select \"No jounal 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).) View transaction list 1 Receilved semiannual interest of $3.0 million from the Convenience, Inc., bonds. Purchased 10% bonds of Facsimile Enterprises at their $72.0 million face value, to be held until they mature in 2026. Semiannual interest is payable May 31 and November 30

Solution

Journal Entry (Amount in Millions) Date Particulars Dr. Amt. Cr. Amt. 1-Nov Cash           3.00 Investment Revenue           3.00 (record the interest received on Convenience Inc Bonds) 1-Dec Investment in Bonds - Facsimile Bonds         72.00 Cash         72.00 (record the purchase of bonds) 31-Dec Investment in US Treasury Bills         10.70 Cash         10.70 (record the purchase of US Treasury Bills) 31-Dec Investment Reveue Receivable - Convenience Bonds           1.00 $75 Millions X 8% X 2/12 Investment Reveue Receivable - Facsimile Bonds           0.60 $72 Millions X 10% X 1/12 Investment Revenue           1.60 (record the interest receivable on Bonds)