Required information (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 $29,500. Feb. 9 Purchased notes of Sony for $63,540. June 12 Purchased bonds of Mattel for $49,500. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $32,300; Sony, $55,750; and Mattel, $57,850. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $32,500. July 5 Sold all of the bonds of Mattel for $42,150. July 22 Purchased notes of Sara Lee for $18,700. Aug. 19 Purchased bonds of Kodak for $21,600. Dec. 31 Fair values for debt in the portfolio are Kodak, $22,475; Sara Lee, $21,000; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $158,200. June 21 Sold all of the notes of Sony for $64,800. June 30 Purchased bonds of Black & Decker for $59,400. Aug. 3 Sold all of the notes of Sara Lee for $17,850. Nov. 1 Sold all of the bonds of Kodak for $26,325. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $60,000; and Microsoft, $160,400. 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. 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 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.) Year 1 Year 2 Year 3 Realized gains (losses) Sale of Johnson & Johnson Sale of Mattel Sale of Sony Sale of Sara Lee Sale of Kodak Total realized gains (losses) Unrealized gains (losses) at year-end 0 $ 0 $