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 $26,000. Feb. 9 Purchased notes of Sony for $60,390. June 12 Purchased bonds of Mattel for $46,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,100: Sony, $49,650; and Mattel, $54,850. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $29,000. July 5 sold all of the bonds of Mattel for $39,700. July 22 Purchased botos of Sara Lee for $15,900. Aug. 19 Purchased bonds of Kodak for $19,150 Dec. 31 Pair values for debt in the portfolio are Kodak, $19,250; Sara Lee, $17,500; and Sony, $62,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,600. June 21 Sold all of the notes of Sony for $62,000. June 30 Purchased bonds of Black & Decker for $55,900. Aug. 3 sold all of the notes of Sara Loe for $14,700. Nov. 1 Sold all of the bonds of Kodak for $24,050. Dec. 31 Yair values for debt in the portfolio are Black Decker, $57,900; and Microsoft, $159,700. 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 avallable-for-sale debt securities at each year-end, (Losses should be indicated by a minus sign.) Year 3 Peb. 27 Purchased bonds of Microsoft for $159,600. June 21 Sold all of the notes of Sony for $62,000. June 30 Purchased bonds of Black & Decker for $55,900. Aug. 3 Sold all of the notes of Sara Lee for $14,700. Nov. 1 Sold all of the bonds of Kodak for $24,050. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $57,900; and Micronoft, $159,700. 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$ 2. Complete the following table that summarizes the (a) total cost. (b) total fair value adjustment, and (total fair value of the portfollo of long-term avallable-for-sale debt securities at each year-end. (Loss amounts should be Indicated with a minus sign.) 12/31/6.3 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) 12/31/. 1 12/31/42 2,210 2,2101 $ 4,420 $ 0 $
