Paris Inc. began operations in Year 1. Following is a series of transactions and events involving its long-term debt investments in available-for-sale securities.

Year 1

Mar. 10 Purchased bonds of Apple for $30,600.

Sep. 1 Purchased bonds of Polaroid for $28,200.

Dec. 31 Fair values for debt in the portfolio are Apple, $33,000; Ford, $54,600; and Polaroid, $29,400.

Year 2

Apr. 26 Sold all of the notes of Ford for $51,250.

June 2 Purchased bonds of Duracell for $34,650.

June 14 Purchased notes of Sears for $25,200.

Nov. 27 Sold all of the bonds of Polaroid for $30,600.

Dec. 31

Fair values for debt in the portfolio are Apple, $31,000; Duracell, $32,400; and Sears, $27,600.

Year 3

Jan. 28 Purchased bonds of Coca-Cola for $40,000.

Aug. 22 Sold all of the bonds of Apple for $25,800.

Sep. 3 Purchased notes of Motorola for $84,000.

Oct. 9 Sold all of the notes of Sears for $28,800.

Oct. 31 Sold all of the bonds of Duracell for $27,000.

Dec. 31 Fair values for debt in the portfolio are Coca-Cola, $48,000, and Motorola, $82,000.

Required

1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of longterm available-for-sale debt securities.

2. Prepare a table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value for the portfolio of long-term available-for-sale debt securities at each year-end.

3. Prepare a table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long-term available-for-sale debt securities at each year-end.