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 $27,000 Feb. 9 Purchased notes of Sony for $61,290. June 12 Purchased bonds of Mattel for $42,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $31,300; Sony, $50,250; and Mattel, $56, ese. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $30,000 July 5 sold all of the bonds of Mattel for $40,400. July 22 Purchased notes of Sara Lee for $16,700. Aug. 19 Purchased bonds of Kodak for $19,850, Dec. 31 Fair values for debt in the portfolio are Kodak. $19,660, Sara Lee, 118.500 and Sony, 554,00 Year 3 Feb. 27 Purchased bonds of Microsoft for $159,200 June 21 Sold all of the notes of Sony for $62,500 June 30 Purchased bonds of Black & Decker for $56,900 Aug 3 Sold all of the notes of Sara Lee for $15,600 Nov. 1 Sold all of the bonds of Kodak for $24,70 Dec 31 Fair values for debt in the portfolio are black & Decker, $53,500) and Microsoft 5150,000 2. Complete the following table that summarizes the total cost (o) total fair value adjustment, and a total for value of the portfolio of long-term available-for-sale debt securities at each year-end (Lost amounts should be indicated with a minus tlgn.) 12/31/Y 1 12 1/2 12031/ Debil investments Long-Term AFS Securities (Oost) Fair value adjustment AFS Long-Term AFS Securities (Far value) $ S 0 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 $27,000 Feb. 9 Purchased notes of Sony for $61,290. June 12 Purchased bonds of Mattel for $47,eee. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $31,300; Sony, $50,25e; and Mattel, $56,050. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $30,000 July 5 Sold all of the bonds of Mattel for $40,400 July 22 Purchased notes of Sara Lee for $16,700. Aug. 19 Purchased bonds of Kodak for $19,85e. Dec. 31 Fair values for debt in the portfolio are Kodak, $19,500; Sara Lee, $18,500; and Sony, $64,000 Year 3 Feb. 27 Purchased bonds of Microsoft for $159,200 June 21 Sold all of the notes of Sony for $62,800 June 30 Purchased bonds of Black & Decker for $56,900 Aug 3 Sold all of the notes of Sara Lee for $15,600 Nov. 1 Sold all of the bonds of Kodak for $24,700. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $58,500; and Microsoft, $159,900 3. Complete the following table that summarizes (y the realized gains and losses and (o 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 algn.) Year 1 Year 2 Year Realed 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 $ 05 05
