Required information

Skip to question

$[$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 $$29,000.$

February $9$ Purchased Sony notes for $$63,990.$

June $12$ Purchased Mattel bonds for $$50,000.$

December $31$ Fair values for debt in the portfolio are Johnson & Johnson, $$32,900$; Sony, $$55,050$ and Mattel, $$57,150.$

Year $2$

April $15$ Sold all of the Johnson & Johnson bonds for $$33,000.$

July $5$ Sold all of the Mattel bonds for $$42,500.$

July $22$ Purchased Sara Lee notes for $$20,100.$

August $19$ Purchased Kodak bonds for $$21,950.$

December $31$ Fair values for debt in the portfolio are Kodak, $$22,650$ Sara Lee, $$21,500$ and Sony, $$65,000.$

Year $3$

February $27$ Purchased Microsoft bonds for $$159,000.$

June $21$ Sold all of the Sony notes for $$65,200.$

June $30$ Purchased Black & Decker bonds for $$59,900.$

August $3$ Sold all of the Sara Lee notes for $$18,300.$

November $1$ Sold all of the Kodak bonds for $$26,650.$

December $31$ Fair values for debt in the portfolio are Black & Decker, $$60,300$ and Microsoft, $$160,500.$

$3.$ 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.

Note: Losses should be indicated by a minus sign.