U3 Excersises - FF&T Corporation is a confectionery...

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FF&T Corporation is a confectionery wholesaler that frequently buys and sells securities to meet various investments objectives. The following selected activities during the last two months of 2011. At November bonds of Convenience, Inc., purchased May 1, 2011, 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 semianual interest of $2.4 million from the Convenience, Inc. bonds. Dec 1 Purchased 12% bonds of Facsimile Enterprises at their $30 million face value, to be held until they mature in 2024. Semiannual interest is payable May 31 and November 30. 31 Recorded any necessary adjusting entry(s) relating to the investments. The fair values of the investments at December 3 Convenience bonds Facsimile Enterprises bonds U.S. Treasury bills Required: Prepare the appripriate journal entry for each transaction or event. Solution: Nov. 1 Cash -------------------------- $2.4 million                               Investment Revenue --------------- $2.4 million Dec. 1 Investment in Facsimile Enterprises bonds ------- $30 
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This note was uploaded on 02/29/2012 for the course INTERMEDIA 301 taught by Professor ?? during the Spring '12 term at Post.

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U3 Excersises - FF&T Corporation is a confectionery...

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