[The following information applies to the questions displayed below.] Mead Incorporated 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 January 20 Purchased Johnson & Johnson bonds for $21,000. February 9 Purchased Sony notes for $55,890. June 12 Purchased Mattel bonds for $41,000. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $22,100; Sony, $46,650 and Mattel, $52,950. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $24,000. July 5 Sold all of the Mattel bonds for $36,200. July 22 Purchased Sara Lee notes for $13,900. August 19 Purchased Kodak bonds for $15,650. December 31 Fair values for debt in the portfolio are Kodak, $17,500 Sara Lee, $12,500 and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $159,600. June 21 Sold all of the Sony notes for $58,000. June 30 Purchased Black & Decker bonds for $50,900. August 3 Sold all of the Sara Lee notes for $10,200. November 1 Sold all of the Kodak bonds for $20,800. December 31 Fair values for debt in the portfolio are Black & Decker, $54,900 and Microsoft, $158,700. 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.