Required: 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available- for-sale debt securities. 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 $21,500. Feb. 9 Purchased notes of Sony for $56,340. June 12 Purchased bonds of Mattel for $41,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $22,700; Sony, $ 46,950; and Mattel, $53, 350. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $24,500. July 5 Sold all of the bonds of Mattel for $36,550. July 22 Purchased notes of Sara Lee for $14,300. Aug. 19 Purchased bonds of Kodak for $16,000. Dec. 31 Fair values for debt in the portfolio are Kodak, $17,675; Sara Lee, $13,000; and Sony, $61,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,400. June 21 Sold all of the notes of Sony for $58,400. June 30 Purchased bonds of Black & Decker for $51,400. Aug. 3 Sold all of the notes of Sara Lee for $10,650. Nov. 1 Sold all of the bonds of Kodak for $21, 125. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $55, 200; and Microsoft, $158,800