Mead Inc began operations In Year 1, following is a series of transactions and events involving its long-term debt Investments in avatlable for sale securities. Year 1 Jan. 2e Purchased Johnson & Johnson bonds for $27,500. Feb. 9 Purchased notes of Sony for $61,748. June 12 Purchased bonds of Mattel for $47,5ee. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $29,999; Sony, $52,550; and Mattel, $57,450. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $30,500. July 5 sold all of the bonds of Mattel for $40,750. July 22 Purchased notes of Sara Lee for $17,100. Aug. 19 Purchased bonds of Kodak for $20,200. Dec. 31 Fair values for debt in the portfolio are Kodak, $19,775; Sara Lee, $19,000; and Sony, $65, eee. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,000. June 21 Sold all of the notes of Sony for $63,200. June 30 Purchased bonds of Black & Decker for $57,400. Aug. 3 Sold all of the notes of Sara Lee for $16, ese. Nov. 1 sold all of the bonds of Kodak for $25,025. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $58,800; and Microsoft, $160,000. Problem 15-2A Part 2 2. Complete the following table that summarizes the total cost. (b) total fair value adjustment, and 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/ 1 Nr. 2 12/31 3 Debt investments Long AFS Becurities (0) 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 $27,500. Feb. 9 Purchased notes of Sony for $61, 740. June 12 Purchased bonds of Mattel for $47,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $29,900; Sony, $52, 550; and Mattel, $57,450. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $30, 500. July 5 sold all of the bonds of Mattel for $40,750. July 22 Purchased notes of Sara Lee for $17,100. Aug. 19 Purchased bonds of Kodak for $20, 200. Dec. 31 Pair values for debt in the portfolio are Kodak, $19,775; Sara Lee, $19,000; and Sony. $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,000. June 21 Sold all of the notes of Sony for $63,200. June 30 Purchased bonds of Black & Decker for $57,400. Aug. 3 Sold all of the notes of Sara Lee for $16,050. Nov. 1 sold all of the bonds of Kodak for $25,025. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $58, 800; and Microsoft, $160,000. 2. Complete the following table that summarizes the (total cost. (b) total fair value adjustment, and 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 1 2/31/Yr. 2 12/31/Yr. 3 Debt investments Long-Term AFS Securities (cost) Fax value adjustment AFS Long-Term AFS Securities ar value) S 0 S 0S 0
