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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

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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 $25,000. February 9 Purchased Sony notes for $59,490. June 12 Purchased Mattel bonds for 145,000. Decenber 31 Fale values for debt in the portfolio are Johnson \& Johnson, $26,900; 5ony, $49,050; and Mattel, 555,950 . Yeor 2 Apri1 15 Sold all of the Johnson 8 Johnson bonds for $28,000, July 5 sold oll of the Mattel bonds for $39,e0e. july 22 Purchased Sara Lee notes for $17,169. August 19 Purchased Kodak bonds for $18,450. Decenber 31 Falr values for debt in the pontfolio are Kodak, $18,900;;ara tee, $16,500; and 50ny,$63,600. Year 3 February 27 Purchased Microsoft bonds for $161,000, Decenber 31 Fair values for debt in the portfollo are Kodak, $18,900; Sara Lee, $16,500; and 50ny, \$63, 900. Year 3 February 27 Purchased Microsoft bonds for $161,600. June 21 Sold al1 of the sony notes for $61,200. June 30 Purchased B1ack \& Decker bonds for $54,960. August 3 Sold all of the Sara lee notes for $13,800. Novenber 1 sold all of the Kodak bonds for $23,400. December 31 Fair values for debt in the portfolio are 81 ack 8 Decker, $57,300; and Microsoft, \$159, 500. roblem 15-2A (Algo) Part 3 3. Complete the following table that summarizes (a) the realized gains and losses and (b) the unreatized gains or losses for the ortfolio of long-term available-for-sale debt securities at each year-end. (Losses should be indicated by a minus sign.) 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.)

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