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 2018. 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 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 12% bonds of Facsimile Enterprises at their $40 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 $10.9 million
31 Recorded any necessary adjusting entry(s) relating to the investments.
The fair values of the investments at December 31 were:
Convenience bonds $45.2 million
Facsimile Enterprises bonds 40.5 million
U. S. Treasury bills 10.9 million
Required:
1. Prepare the appropriate journal entry for each transaction or event.