IIVESUIEIII II avallavie$-$IUI$-$Sale seLUIUEs.

Year $1$

January $20$ Purchased Johnson & Johnson bonds for $$26,500.$

February $9$ Purchased Sony notes for $$60,840.$

June $12$ Purchased aMattel bonds for $$46,500.$

December $31$ Fair values for debt in the portfolio are Johnson & Johnson, $$30,700$; Sony, $$49,950$; and Mattel, $$55,250.$

Year $2$

April $15$ Sold all of the Johnson & Johnson bonds for $$29,500.$

July $5$ sold all of the Mattel bonds for $$40,05.$

July $22$ Purchased Sara Lee notes for $$16,300.$

August $19$ Purchased Kodak bonds for $$19,500.$

December $31$ Fair values for debt in the portfolio are Kodak, $$19,425$; Sara Lee, $$18,000$; and Sony, $$63,000.$

Year $3$

February $27$ Purchased Microsoft bonds for $$159,400.$

June $21$ Sold all of the Sony notes for $$62,400.$

June $30$ Purchased Black & Decker bonds for $$56,400.$

August $3$ Sold all of the Sara Lee notes for $$15,150.$

November $1$ Sold all of the Kodak bonds for $$24,375.$

December $31$ Fair values for debt in the portfolio are Black & Decker, $$58,200$; and Microsoft, $$159,800.$

Problem $15-2$A $($Algo$)$ Part $1$

Required:

Prepare journal entrles to record these transactions and the year$-$end falr value adjustments to the portfolio of long$-$term avallablefor$-$sale debt securitles$.$