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Please help not sure how to do this one explanation would be appreciated Problem 15-2A (Algo) Recording, adjusting, and reporting available-for-sale debt securities LO P3
Please help not sure how to do this one explanation would be appreciated
Problem 15-2A (Algo) Recording, adjusting, and reporting available-for-sale debt securities LO P3 [The following information applies to the questions displayed below] 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 8 Johnson bonds for $26,500. February 9 Purchased Sony notes for $60,840. June 12 Purchased Hattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson \& Johnson, $30,700; Sony, $49,950; and Mattel, $55,258. Year 2 April 15 Sold all of the Johnson \& Johnson bonds for $29,500. July 5 sold all of the Mattel bonds for $48,05. July 22 Purchased Sara lee notes for $16,30e. August 19 . Purchased Kodak bonds for $19,500. December 31 fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and $0ny,$63,000. Year 3 February 27 Purchased Microsoft bonds for $159,406. June 21 Sold all of the sony notes for $62,400. June 3e Purchased Black & Decker bonds for $56,40e. August 3 Sold all of the Sara lee notes for $15,150. Novenber 1 Sold all of the Kodak bonds for $24,375. December 31 Fair values for debt in the portfolio are Black \& Decker, $58,200; and Microsoft, $159,800. 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 avallable-for-sale debt securities at each year-end Note: Loss amounts should be indicated with a minus sign Step by Step Solution
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