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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 $25,000 Feb 9 Purchased notes of Sony for $59,490. June 12 Purchased bonds of Mattel for $45,000. Dec: 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,900; Sony, $49,050; and Mattel, $55,950 Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $28,000. July 5 Sold all of the bonds of Mattel for $39,000. July 22 Purchased notes of Sara Lee for $17, 100. Aug. 19 Purchased bonds of Kodak for $18,450 Dec. 31 Fair values for debt in the portfolio are Kodak, $18,900; Sara Lee, 516,500; and Sony, 563.000. Year 3 Feb 27 Purchased bonds of Microsoft for $161,000 June 21 Sold all of the notes of Sony for $61.200. June 30 Purchased bonds of Black & Decker for $54,900 Aug 3 Sold all of the notes of Sara Lee for $13,800 . 1 Sold all of the bonds of Kodak for $23, 400 Dec. 31 Fair values for debt in the portfolio are Black & Decker, 557, 300; and Microsoft, $159.500 2. Complete the following table that summarizes the (a) total cost. (b) total fair value adjustment, and a 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.) 12/31/7.1 12/31/2 12/31/Yt. 3 Debt Investments Long-Term AFS Secunties (cost) Fair value adjustment AFS Long-Term AFS Securities (Fair value) S 05 05 0 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 quinn (ouses) Unrealized gains fosses) and year-end $ 0 $ OS 0