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Problem 1 5 - 2 A Recording , adjusting, and reporting available - for - sale debt securities P 3 Mead Inc. began operations in
Problem ARecording adjusting, and reporting availableforsale debt securitiesPMead Inc. began operations in Year Following is a series of transactions and events involving its longterm debt investments in availableforsale securitiesYear JanPurchased Johnson & Johnson bonds for $FebPurchased Sony notes for $JunePurchased Mattel bonds for $DecFair values for debt in the portfolio are Johnson & Johnson, $; Sony, $; and Mattel, $Year AprSold all of the Johnson & Johnson bonds for $JulySold all of the Mattel bonds for $JulyPurchased Sara Lee notes for $AugPurchased Kodak bonds for $DecFair values for debt in the portfolio are Kodak, $; Sara Lee, $; and Sony, $Year FebPurchased Microsoft bonds for $JuneSold all of the Sony notes for $JunePurchased Black & Decker bonds for $AugSold all of the Sara Lee notes for $NovSold all of the Kodak bonds for $DecFair values for debt in the portfolio are Black & Decker, $ and Microsoft, $RequiredPrepare journal entries to record these transactions and the yearend fair value adjustments to the portfolio of longterm availableforsale debt securitiesPrepare a table that summarizes the a total cost, b total fair value adjustment, and c total fair value of the portfolio of longterm availableforsale debt securities at each yearend.Checkb Fair Value Adj. bal.: Year $ Dr; Year $ DrPrepare a table that summarizes a the realized gains and losses and b the unrealized gains or losses for the portfolio of longterm availableforsale debt securities at each yearend.b Unrealized Gain at Year $Problem ARecording adjusting, and reporting availableforsale debt securitiesPMead Inc. began operations in Year Following is a series of transactions and events involving its longterm debt investments in availableforsale securitiesYear JanPurchased Johnson & Johnson bonds for $FebPurchased Sony notes for $JunePurchased Mattel bonds for $DecFair values for debt in the portfolio are Johnson & Johnson, $; Sony, $; and Mattel, $Year AprSold all of the Johnson & Johnson bonds for $JulySold all of the Mattel bonds for $JulyPurchased Sara Lee notes for $AugPurchased Kodak bonds for $DecFair values for debt in the portfolio are Kodak, $; Sara Lee, $; and Sony, $Year FebPurchased Microsoft bonds for $JuneSold all of the Sony notes for $JunePurchased Black & Decker bonds for $AugSold all of the Sara Lee notes for $NovSold all of the Kodak bonds for $DecFair values for debt in the portfolio are Black & Decker, $ and Microsoft, $RequiredPrepare journal entries to record these transactions and the yearend fair value adjustments to the portfolio of longterm availableforsale debt securitiesPrepare a table that summarizes the a total cost, b total fair value adjustment, and c total fair value of the portfolio of longterm availableforsale debt securities at each yearend.Checkb Fair Value Adj. bal.: Year $ Dr; Year $ DrPrepare a table that summarizes a the realized gains and losses and b the unrealized gains or losses for the portfolio of longterm availableforsale debt securities at each yearend.b Unrealized Gain at Year $Checkb Fair Value Adj. bal.: Year $ Dr; Year $ Drb Unrealized Gain at Year $
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