[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 $28,000. Feb. 9 Purchased notes of Sony for $62,190. Dune 12 Purchased bonds of Mattel for $18,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $30, 500; Sony, $52,850; and Mattel, $57,650. Year 2 Apr. 15 sold all of the bonds of Johnson & Johnson for $31,000. Duly 5 sold all of the bonds of Mattel for $41,100. July 22 Purchased notes of Sara Lee for $17,500. Aug. 19 Purchased bonds of Kodak for $20,550. DC. 31 Fair values for debt in the portfolio are kodak, $19,950: Sara Lee, $19,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,800. Dune 21 sold all of the notes of Sony for $63,600. Dune 30 Purchased bonds of Black & Decker for $57,900. Aug, 3 sold all of the notes of Sara Lee for $16,500. Nov. 1 Sold all of the bonds of Kodak for $25,350. Dec. 31 Fair values for debt in the portfolio are Black & Deckers $59.100; and Microsoft, $160,100. Problem 15-2A Part 2 2. Complete the following table that summarizes the (a) total cost. (b) total fair value adjustment, and (c) total fair value of the portfo of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 2 12/31/Yr. 3 12/31/Yr. 1 $ 138,190 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) $ 2.810 141.000 $ July S al U July 22 Purchased notes of Sara Lee for $17,500. Aug. 19 Purchased bonds of Kodak for $20,550. Dec. 31 Fair values for debt in the portfolio are Kodak, $19,950; Sara Lee, $19,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,800. June 21 sold all of the notes of Sony for $63,600. June 30 Purchased bonds of Black & Decker for $57,40. Aug 3 Sold all of the notes of Sara Lee for $16,500. Nov. 1 sold all of the bonds of Kodak for $25,350. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $59,100; and Microsoft, $160,100. Problem 15-2A Part 3 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 dosses) Sale of Johnson & Johnson Sale of Mattel Sale of Sony Sale of Sara Lee Sale of Kodak Total realized gain losses) Unrealized gains dosses) a year-end Type here to search Chap [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 $28,000. Feb. 9 Purchased notes of Sony for $62,190. Dune 12 Purchased bonds of Mattel for $18,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $30, 500; Sony, $52,850; and Mattel, $57,650. Year 2 Apr. 15 sold all of the bonds of Johnson & Johnson for $31,000. Duly 5 sold all of the bonds of Mattel for $41,100. July 22 Purchased notes of Sara Lee for $17,500. Aug. 19 Purchased bonds of Kodak for $20,550. DC. 31 Fair values for debt in the portfolio are kodak, $19,950: Sara Lee, $19,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,800. Dune 21 sold all of the notes of Sony for $63,600. Dune 30 Purchased bonds of Black & Decker for $57,900. Aug, 3 sold all of the notes of Sara Lee for $16,500. Nov. 1 Sold all of the bonds of Kodak for $25,350. Dec. 31 Fair values for debt in the portfolio are Black & Deckers $59.100; and Microsoft, $160,100. Problem 15-2A Part 2 2. Complete the following table that summarizes the (a) total cost. (b) total fair value adjustment, and (c) total fair value of the portfo of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) 12/31/Yr. 2 12/31/Yr. 3 12/31/Yr. 1 $ 138,190 Debt Investments Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) $ 2.810 141.000 $ July S al U July 22 Purchased notes of Sara Lee for $17,500. Aug. 19 Purchased bonds of Kodak for $20,550. Dec. 31 Fair values for debt in the portfolio are Kodak, $19,950; Sara Lee, $19,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,800. June 21 sold all of the notes of Sony for $63,600. June 30 Purchased bonds of Black & Decker for $57,40. Aug 3 Sold all of the notes of Sara Lee for $16,500. Nov. 1 sold all of the bonds of Kodak for $25,350. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $59,100; and Microsoft, $160,100. Problem 15-2A Part 3 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 dosses) Sale of Johnson & Johnson Sale of Mattel Sale of Sony Sale of Sara Lee Sale of Kodak Total realized gain losses) Unrealized gains dosses) a year-end Type here to search Chap
