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Jan. 20 Purchased Johnson & Johnson bonds for $23,500. Feb. 9 Purchased notes of Sony for $58,140. June 12 Purchased bonds of Mattel for $43,500.

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Jan. 20 Purchased Johnson & Johnson bonds for $23,500. Feb. 9 Purchased notes of Sony for $58,140. June 12 Purchased bonds of Mattel for $43,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,100; Sony, $48,150; and Mattel, $54,150. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $26,500. July 5 Sold all of the bonds of Mattel for $37,950. July 22 Purchased notes of Sara Lee for $14,900. AUR. 19 Purchased bonds of Kodak for $17,400. Dec. 31 Fair values for debt in the portfolio are Kodak, $18,375; Sara Lee, $15,000; and Sony, 561,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,600. June 21 Sold all of the notes of Sony for $60,000 June 30 Purchased bonds of Black & Decker for $53,400. Aug 3 Sold all of the notes of Sara Lee for $12,450, Nov . 1 Sold all of the bonds of Kodak for $22,425. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $56, 400; and Microsoft, $159, 200. Problem 15-2A Part 2 2. Complete the following table that summarizes the (a) total cost. (b) total fair value adjustment and (c) total fair value of the portfolio of long-term available for sale debt securities at each year end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 1 12/31/Yr 2 12/31/Yr. 3 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) $ OS 0 $ 0 Required information Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities LO P3 (The following information applies to the questions displayed below.) Mead 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 Jan. 20 Purchased Johnson & Johnson bonds for $23, see. Feb. 9 Purchased notes of Sony for $58,140. June 12 Purchased bonds of Mattel for $43,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,100; Sony, $48,150; and Mattel, $54,150. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $26,500. July 5 Sold all of the bonds of Mattel for $37,958. July 22 Purchased notes of Sara Lee for $14,900. Aug. 19 Purchased bonds of Kodak for $17,400. Dec. 31 Fair values for debt in the portfolio are Kodak, $18,375; Sara Lee, $15,000; and Sony, $61,00e. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,600. June 21 Sold all of the notes of Sony for $60,000. June 30 Purchased bonds of Black & Decker for $53,400. Aug 3. Sold all of the notes of Sara Lee for $12,450. Nov. 1 Sold all of the bonds of Kodak for $22,425. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $56,400; and Microsoft, $159,200. Problem 15-2A Part 3 3. Complete the following 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. (Losses should be indicated by a minus sign.) Year 1 Year 2 Year 3 Realized gains (losses) Sale of Johnson & Johnson Sale of Mattel Sale of Sony Sale of Sara Lee Sale of Kodak Total realized gains (losses) Unrealized gains (losses) at year-end

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