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 $29,000. Feb. 9 Purchased notes of Sony for $63,990. June 12 Purchased bonds of Mattel for $50,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $32,900; Sony, $55,050; and Mattel, $57,150. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $33,000. July 5 Sold all of the bonds of Mattel for $42,500. July 22 Purchased notes of Sara Lee for $20,100. Aug. 19 Purchased bonds of Kodak for $21,950. Dec. 31 Fair values for debt in the portfolio are Kodak, $22,650; Sara Lee, $21,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,000. June 21 Sold all of the notes of Sony for $65,200. June 30 Purchased bonds of Black & Decker for $59,900. Aug. 3 Sold all of the notes of Sara Lee for $18,300. Nov. 1 Sold all of the bonds of Kodak for $26,650. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $60,300; and Microsoft, $160,500. 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. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 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. View transaction list Journal entry worksheet Purchased bonds of Johnson & Johnson for $29,000. Note: Enter debits before credits. Date General Journal Debit Credit Jan 20 Journal entry worksheet Purchased notes of Sony for $63,990. Note: Enter debits before credits. Date General Journal Debit Credit Feb 09 Record entry Clear entry View general journal Journal entry worksheet Fair values for debt in the portfolio are Johnson & Johnson, $32,900; Sony, $55,050; and Mattel, $57,150. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 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.) Debt Investments 12/31/Yr. 1 12/31/Yr. 2 12/31/Yr. 3 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