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[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.

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.)

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.)