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 $20,500. Feb. 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 Apr. 15 July 5 July 22 Aug 19 Dec. Year 3 31 Sold all of the Johnson & Johnson bonds for $23,500. Sold all of the Mattel bonds for $35,850. Purchased Sara Lee notes for $13,500. Purchased Kodak bonds for $15,300. Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony; $60,000. Purchased Microsoft bonds for $160,800. Feb. 27 June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. Aug 3 Sold all of the Sara Lee notes for $9,750. Nov. 1 Dec. 31 Sold all of the Kodak bonds for $20,475. Fair values for debt in the portfolio are Black & Decker, $54,600, and Microsoft, $158,600. Required 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available- for-sale debt securities. 2. Prepare a table that summarizes the (a) total cost, (b) total fair value adjustment, and (e) total fair value of the portfolio of long- term available-for-sale debt securities at each year-end. Check 2b Fer Velue Ad be: 12/31/Year 1 $3910 Dr. 12/31/Year 2 $5,085 Dr. 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. (30) Unrealzed Gain at 12/31/ear 3, $2,000