Final answer:
To record the purchase, note the $56 million for Treasury bills and $65 million for Treasury bonds in financial statements. These are secure, common financial instruments for governmental borrowing.
Step-by-step explanation:
The student's question asks how to record the purchase of U.S. Treasury bills for $56 million and Treasury bonds for $65 million. The purchase of these financial instruments represents a common transaction in the management of government debt. When the federal government borrows money, it can issue Treasury bills (T-bills) for short-term financing needs, with maturities of 13, 26, or 52 weeks, and Treasury bonds for long-term financing, with maturities of more than 10 years. T-bills are typically available in minimum denominations of $10,000, while T-notes and T-bonds can vary from $1,000 to $5,000 denominations. As such, governments, businesses, and individuals, including foreign parties, invest in U.S. federal debt as a secure financial asset due to the government's strong record of consistent payments over its history.