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 $22,000. February 9 Purchased Sony notes for $56,790. June 12 Purchased Mattel bonds for $42,000. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $23,300; Sony, $47,250; and Mattel, $53,650. Year 2 Sold all of the Johnson & Johnson bonds for $25,000. April 15 July 5 July 22 Purchased Sara Lee notes for $14,700. Sold all of the Mattel bonds for $36,900. August 19 Purchased Kodak bonds for $16,350. December 31 Fair values for debt in the portfolio are Kodak, $17,850; Sara Lee, $13,500; and Sony, $61,000. Year 3 February 27 Purchased Microsoft bonds for $159,200. June 21 Sold all of the Sony notes for $58,800. June 30 Purchased Black & Decker bonds for $51,900. August 3 Sold all of the Sara Lee notes for $11,100. November 1 Sold all of the Kodak bonds for $21,450. December 31 Fair values for debt in the portfolio are Black & Decker, $55,500; and Microsoft, $158,900. Problem 15-2A (Algo) Part 1 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. Complete this question by entering your answers in the tabs below. Year 1 Year 2 Year 3 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. View transaction list Journal entry worksheet 1 2 3 4 > Purchased bonds of Johnson & Johnson for $22,000. Note: Enter debits before credits Problem 15-2A (Algo) 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 portfolio of long-term available-for-sale debt securities at each year-end. (Loss amounts should be indicated with a minus sign.) Debt Investments 12/31/Year 1 12/31/Year 2 12/31/Year 3 Long-Term AFS Securities (cost) Fair value adjustment-AFS Long-Term AFS Securities (Fair value) 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