FF&T Corporation is a confectionery wholesaler thatfrequently buys and sells securities to meet various investmentobjectives. The following selected transactions relate toFF&T’s investment activities during the last two months of2018. 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 bondsuntil maturity. FF&T’s fiscal year ends on December 31. Nov. 1Received semiannual interest of $2.4 million from the Convenience,Inc., bonds. Dec. 1 Purchased 12% bonds of Facsimile Enterprises attheir $40 million face value, to be held until they mature in 2024.Semiannual interest is payable May 31 and November 30. 31 PurchasedU.S. Treasury bills to be held until they mature in two months for$10.9 million. 31 Recorded any necessary adjusting entry(s)relating to the investments. The fair values of the investments atDecember 31 were: Convenience bonds $ 45.2 million FacsimileEnterprises bonds 40.5 million U.S. Treasury bills 10.9 millionRequired: Prepare the appropriate journal entry for eachtransaction or event. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field. Enter your answers in millions rounded to 1 decimalplace (i.e., 5,500,000 should be entered as 5.5).)
1. Received semiannual interest of $2.4 million from theConvenience, Inc., bonds.
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Nov 01 | Cash | | | | | | | | | | | | | | | | | | | | | | |
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2. Purchased 12% bonds of Facsimile Enterprises at their $40million face value, to be held until they mature in 2024.Semiannual interest is payable May 31 and November 30.
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Dec 01 | Investment in Facsimile Enterprisesbonds | | | | Cash | | | | | | | | | | | | | | | | | |
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3. Purchased U.S. Treasury bills that mature in two months for$10.9 million.
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Dec 31 | Investment in U.S. treasury bills | | | | Cash | | | | | | | | | | | | | | | | | | |
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4. Record the interest accrued.
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Dec 31 | | | | | | | | | | | | | | | | | | | | | | | |
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5. Record the fair value adjustment.
Note: Enter debits before credits.
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| | Date | General Journal | Debit | Credit |
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| Dec 31 | | | | | | | | | | | | | | | | | | | | | | | |
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