Problem 15-2A (Algo) Recording, adjusting, and reporting available-for-sale debt securities LO P3 [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 $29,000. February 9 Purchased Sony notes for $63,090. June 12 Purchased Mattel bonds for $49,000. December 31 Fair values for debt in the portfolio are Johnson 6 Johnson, $31,700; Sony, $54,450; and Matte1, $56,650 Year 2 April 15 Sold all of the Johnson 5 Johnson bonds for $32,000. July 5 sold all of the Mattel bonds for $41,800. July 22 Purchased Sara Lee notes for $20,300. August 19 Purchased Kodak bonds for $21,250. December 31 Fair values for debt in the portfolio are Kodak, $22,300; sara hee, $20,500; and sony, $64,000. Year 3 February 27 Purchased Microsoft bonds for $160,400. June 21 Sold al1 of the sony notes for $64,400. June 30 purchased Black 6 Decker bonds for $58,900. Auquat 3 sold al1 of the Sara Lee noten for $17,400. November 1 sold all of the Kodak bonds for $26,000. December 31 Fair valuen for debt in the portfolio are Black \& Decker, $59,700, and Microtioft, $160,300. Journal entry worksheet Purchased bonds of Johnson \& Johnson for $29,000. Note: Enter debits before credits. Journal entry worksheet 4 Note: Enter debits before credits. Journal entry worksheet 1 Purchased Mattel bonds for $49,000. Note: Enter debits before credits. Journal entry worksheet 1 Fair values for debt in the portfolio are Johnson \& Johnson, $31,700; Sony, $54,450; and Mattel, $56,650. Note: Enter debits before credits. 1 Sold all of the Johnson \& Johnson bonds for $32,000. 2 Sold all of the Mattel bonds for $41,800. 3 Purchased Sara Lee notes for $20,300. 4 Purchased Kodak bonds for $21,250. 5 Fair values for debt in the portfolio are: Kodak, $22,300; Sara Lee, $20,500; and Sony, $64,000. 1 Purchased Microsoft bonds for $160,400. 2 Sold all of the Sony notes for $64,400. 3 Purchased Black \& Decker bonds for $58,900. 4 Sold all of the Sara Lee notes for $17,400. 5 Sold all of the Kodak bonds for $26,000. 6 Fair values for debt in the portfolio are: Black \& Decker, $59,700; and Microsoft, $160,300
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