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 $23,000.
Feb.		9		Purchased notes of Sony for $57,690.
June		12		Purchased bonds of Mattel for $43,000.
Dec.		31		Fair values for debt in the portfolio are Johnson & Johnson, $26,500; Sony, $47,850 and Mattel, $53,050.

Year 2

Apr.		15		Sold all of the bonds of Johnson & Johnson for $26,000.
July		5		Sold all of the bonds of Mattel for $37,600.
July		22		Purchased notes of Sara Lee for $14,500.
Aug.		19		Purchased bonds of Kodak for $17,050.
Dec.		31		Fair values for debt in the portfolio are Kodak, $18,200 Sara Lee, $14,500 and Sony, $61,000.

Year 3

Feb.		27		Purchased bonds of Microsoft for $159,800.
June		21		Sold all of the notes of Sony for $59,600.
June		30		Purchased bonds of Black & Decker for $52,900.
Aug.		3		Sold all of the notes of Sara Lee for $12,000.
Nov.		1		Sold all of the bonds of Kodak for $22,100.
Dec.		31		Fair values for debt in the portfolio are Black & Decker, $56,100 and Microsoft, $159,100.

Problem 15-2A Part 3

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.)