Question: I need help it keeps showing that something missing but i don't know what is? Mead Incorporated began operations in Year 1. Following is a
I need help it keeps showing that something missing but i don't know what is?
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 $24,500. |
|---|---|
| February 9 | Purchased Sony notes for $59,040. |
| June 12 | Purchased Mattel bonds for $44,500. |
| December 31 | Fair values for debt in the portfolio are Johnson & Johnson, $26,300; Sony, $49,750 and Mattel, $54,550. |
Year 2
| April 15 | Sold all of the Johnson & Johnson bonds for $27,500. |
|---|---|
| July 5 | Sold all of the Mattel bonds for $38,650. |
| July 22 | Purchased Sara Lee notes for $16,700. |
| August 19 | Purchased Kodak bonds for $18,100. |
| December 31 | Fair values for debt in the portfolio are Kodak, $18,725 Sara Lee, $16,000 and Sony, $62,000. |
Year 3
| February 27 | Purchased Microsoft bonds for $161,200. |
|---|---|
| June 21 | Sold all of the Sony notes for $60,800. |
| June 30 | Purchased Black & Decker bonds for $54,400. |
| August 3 | Sold all of the Sara Lee notes for $13,350. |
| November 1 | Sold all of the Kodak bonds for $23,075. |
| December 31 | Fair values for debt in the portfolio are Black & Decker, $57,000 and Microsoft, $159,400. |



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 View journal entry worksheet No Date General Journal Debit Credit 1 January 20 Debt investments - AFS 24,500 Cash 24,500 February 09 Debt investments - AFS 59,040 Cash 59,040 3 June 12 Debt investments - AFS 44,500 Cash 44,500 4 December 31 2,560 Fair value adjustment - AFS Unrealized gain - Equity 2,560 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 View journal entry worksheet No Date General Journal Debit Credit 1 April 15 Cash 27,500 Gain on sale of debt investments 3,000 24,500 Debt investments - AFS 2 July 05 Cash 38,650 5,850 Loss on sale of debt investments Debt investments - AFS 44,500 3 July 22 Debt investments - AFS 16,700 Cash 16,700 4 August 19 Debt investments - AFS 18,100 Cash 18,100 5 December 31 325 Fair value adjustment - AFS Unrealized gain - Equity 325 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 View journal entry worksheet No Date General Journal Debit Credit 1 February 27 Debt investments - AFS 161,200 Cash 161,200 2 June 21 Cash 60,800 Gain on sale of debt investments 1,760 59,040 Debt investments - AFS 3 June 30 Debt investments - AFS 54,400 Cash 54,400 4 August 03 Cash 13,350 3,350 Loss on sale of debt investments 16,700 5 November 01 Cash 23,075 Gain on sale of debt investments 4,975 18,100 Debt investments - AFS December 31 2,085 Unrealized gain - Equity Fair value adjustment - AFS 2,085
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