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Required information Problem 1 5 - 2 A ( Algo ) Recording, adjusting, and reporting available - for - sale debt securities LO P 3

Required information
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 & Johnson bonds for $22,500.
February 9 Purchased Sony notes for $57,240.
June 12 Purchased Mattel bonds for $42,500.
December 31 Fair values for debt in the portfolio are Johnson & Johnson, $24,900; Sony, $48,550; and Mattel, $52,650.
Year 2
April 15 Sold all of the Johnson & Johnson bonds for $25,500.
July 5 Sold all of the Mattel bonds for $37,250.
July 22 Purchased Sara Lee notes for $13,100.
August 19 Purchased Kodak bonds for $16,700.
December 31 Fair values for debt in the portfolio are Kodak, $18,025; Sara Lee, $14,000; and Sony, $60,000.
Year 3
February 27 Purchased Microsoft bonds for $161,000.
June 21 Sold all of the Sony notes for $59,200.
June 30 Purchased Black & Decker bonds for $52,400.
August 3 Sold all of the Sara Lee notes for $11,550.
November 1 Sold all of the Kodak bonds for $21,775.
December 31 Fair values for debt in the portfolio are Black & Decker, $55,800; and Microsoft, $159,000.
Problem 15-2A (Algo) Part 2
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