Required information [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 $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $23,500. July 5 Sold all of the Mattel bonds for $35,850. July 22 Purchased Sara Lee notes for $13,500. August 19 Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara Lee notes for $9,750. November 1 Sold all of the Kodak bonds for $20,475. December 31 Fair values for debt in the portfolio are Black & Decker, $54,600, and Microsoft, $158,600. Required: 1. Prepare journal entries to record these transactions and the year-end fair value adjustments to the portfolio of long-term available for-sale debt securities Year 1 Year 2 Year 3 Prepare journal entries to record these dansactions and the year-end fair value adjustments to the portfolio of long-term available-for- sale debt securities. View transaction list Journal entry worksheet 1 2 3 4 Purchased Johnson & Johnson bonds for $20,500. Note: Enter debits before credits. Date January 201 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 3 4 Purchased Sony notes for $55,440. Note: Enter debits before credits. Date February 09 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet < 1 2 4 Purchased Mattel bonds for $40,500. Note: Enter debits before credits. Date June 12 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet 1 2 3 4 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal