Paris 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

Mar. 10 Purchased Apple bonds for $30,600.

Apr. 7 Purchased Ford notes for $56,250.

Sep. 1 Purchased Polaroid bonds for $28,200.

Dec. 31 Fair values for debt in the portfolio are Apple, $33,000; Ford, $54,600; and Polaroid, $29,400.

Year 2

Apr. 26 Sold all of the Ford notes for $51,250.

June 2 Purchased Duracell bonds for $34,650.

June 14 Purchased Sears notes for $25,200.

Nov. 27 Sold all of the Polaroid bonds for $30,600.

Dec. 31 Fair values for debt in the portfolio are Apple, $31,000; Duracell, $32,400; and Sears, $27,600.

Year 3

Jan. 28 Purchased Coca-Cola bonds for $40,000.

Aug. 22 Sold all of the Apple bonds for $25,800.

Sep. 3 Purchased Motorola notes for $84,000.

Oct. 9 Sold all of the Sears notes for $28,800.

Oct. 31 Sold all of the Duracell bonds for $27,000.

Dec. 31 Fair values for debt in the portfolio are Coca-Cola, $48,000, and Motorola, $82,000.

Required

1. Prepare journal entries to record these transactions and events and any year-end fair value adjustments to the portfolio of long-term available-for-sale debt securities.

2. Prepare a table that summarizes the 

(a) Total cost, 

(b) Total fair value adjustment

(c) Total fair value for the portfolio of long-term available-for-sale debt securities at each year-end.

3. Prepare a 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.