Required information 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 $28,500. Feb. 9 Purchased notes of Sony for $62,640. June 12 Purchased bonds of Mattel for $48,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $31,100; Sony, $53, 150; and Mattel, $56,950. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $31,500. July 5 Sold all of the bonds of Mattel for $41,450. July 22 Purchased notes of Sara Lee for $19,900. Aug. 19 Purchased bonds of Kodak for $20,900. Dec. 31 Fair values for debt in the portfolio are Kodak, $22,125; Sara Lee, $20,000; and Sony, $64,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,600. June 21 sold all of the notes of Sony for $64,000. June 30 Purchased bonds of Black & Decker for $58,400. Aug. 3 Sold all of the notes of Sara Lee for $16,950. Nov. 1 Sold all of the bonds of Kodak for $25,675. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $59,400; and Microsoft, $160,200. Problem 15-2A Part 2 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 available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 1 1 2/31/Yr.2 12/31/Yr. 3 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) 0 $ 0 $ 0 Required information 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 $28,500. Feb. 9 Purchased notes of Sony for $62,640. June 12 Purchased bonds of Mattel for $48,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $31,100; Sony, $53, 150; and Mattel, $56,950. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $31,500. July 5 Sold all of the bonds of Mattel for $41,450. July 22 Purchased notes of Sara Lee for $19,900. Aug. 19 Purchased bonds of Kodak for $20,900. Dec. 31 Fair values for debt in the portfolio are Kodak, $22,125; Sara Lee, $20,000; and Sony, $64,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,600. June 21 sold all of the notes of Sony for $64,000. June 30 Purchased bonds of Black & Decker for $58,400. Aug. 3 Sold all of the notes of Sara Lee for $16,950. Nov. 1 Sold all of the bonds of Kodak for $25,675. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $59,400; and Microsoft, $160,200. Problem 15-2A Part 2 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 available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 1 1 2/31/Yr.2 12/31/Yr. 3 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) 0 $ 0 $ 0
