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 deb investments in available-for-sale securities. Year 1 January 20 Purchased Johnson 3 Johnson bonds for $26,500. February 9 Purchased sony notes for 56e,54e. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson 8 Johnson, \$3e, 7ee; Sony, \$49,95e; and Mattel, $55,250. Year 2 April 15 sold all of the Johnson 8 Johnson bonds for $29,5e0. July 5 Sold all of the Mattel bonds for $40,05e, July 22 Purchased Sara lee notes for $16,300. August 19 Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolia are Kodak, \$19,425; Sara Lee, \$18, eee; and Sony, \$63, eee. Year 3 February 27 Purchased Microsoft bonds for $159,480. June 21 Sold all of the Sony notes for $62,430. June 30 Purchased Black 8 Decker bonds for $56,40e. August 3 sold all of the sara lee notes for $15,150. November 1 Sold all of the Kodak bonds for $24,375. Decenber 31 Fair values for debt in the portfolio are Black \& Decker, \$58,2ee; and Microsoft, $159,800. 2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term avallable-for-sale debt securities at each year-end Note: Loss amounts should be indicated with a minus sign. 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 deb investments in available-for-sale securities. Year 1 January 20 Purchased Johnson 3 Johnson bonds for $26,500. February 9 Purchased sony notes for 56e,54e. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson 8 Johnson, \$3e, 7ee; Sony, \$49,95e; and Mattel, $55,250. Year 2 April 15 sold all of the Johnson 8 Johnson bonds for $29,5e0. July 5 Sold all of the Mattel bonds for $40,05e, July 22 Purchased Sara lee notes for $16,300. August 19 Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolia are Kodak, \$19,425; Sara Lee, \$18, eee; and Sony, \$63, eee. Year 3 February 27 Purchased Microsoft bonds for $159,480. June 21 Sold all of the Sony notes for $62,430. June 30 Purchased Black 8 Decker bonds for $56,40e. August 3 sold all of the sara lee notes for $15,150. November 1 Sold all of the Kodak bonds for $24,375. Decenber 31 Fair values for debt in the portfolio are Black \& Decker, \$58,2ee; and Microsoft, $159,800. 2. Complete the following table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long-term avallable-for-sale debt securities at each year-end Note: Loss amounts should be indicated with a minus sign
