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Mead Incorporated 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
Mead Incorporated 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 January 20 Purchased Johnson \& Johnson bonds for $23,500. February 9 Purchased Sony notes for $58,140. June 12 Purchased Mattel bonds for $43,500. December 31 Fair values for debt in the portfolio are Johnson \& Johnson, $26,100; Sony, $48,150; and Mattel, $54,150. Year 2 April 15 Sold all of the Johnson \& Johnson bonds for $26,500. July 5 Sold all of the Mattel bonds for $37,950. July 22 Purchased Sara Lee notes for $14,900. August 19 Purchased Kodak bonds for $17,400. December 31 Fair values for debt in the portfolio are Kodak, \$18,375; Sara Lee, \$15,000; and Sony, $61,000. Year 3 February 27 Purchased Microsoft bonds for $159,600. June 21 Sold all of the Sony notes for $60,000. June 30 Purchased Black \& Decker bonds for $53,400. August 3 Sold all of the Sara Lee notes for $12,450. November 1 Sold all of the Kodak bonds for $22,425. December 31 Fair values for debt in the portfolio are Black \& Decker, \$56,400; and Microsoft, \$159,200. Problem 15-2A (Algo) 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. Note: Loss amounts should be indicated with a minus sign. Mead Incorporated 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 January 20 Purchased Johnson \& Johnson bonds for $23,500. February 9 Purchased Sony notes for $58,140. June 12 Purchased Mattel bonds for $43,500. December 31 Fair values for debt in the portfolio are Johnson \& Johnson, $26,100; Sony, $48,150; and Mattel, $54,150. Year 2 April 15 Sold all of the Johnson \& Johnson bonds for $26,500. July 5 Sold all of the Mattel bonds for $37,950. July 22 Purchased Sara Lee notes for $14,900. August 19 Purchased Kodak bonds for $17,400. December 31 Fair values for debt in the portfolio are Kodak, \$18,375; Sara Lee, \$15,000; and Sony, $61,000. Year 3 February 27 Purchased Microsoft bonds for $159,600. June 21 Sold all of the Sony notes for $60,000. June 30 Purchased Black \& Decker bonds for $53,400. August 3 Sold all of the Sara Lee notes for $12,450. November 1 Sold all of the Kodak bonds for $22,425. December 31 Fair values for debt in the portfolio are Black \& Decker, \$56,400; and Microsoft, \$159,200. Problem 15-2A (Algo) 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. Note: Loss amounts should be indicated with a minus sign
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