Problem $15-2A(Algo)$ Recording, adjusting, and reporting available$-$for$-$sale debt $securitiesLOP3$

$[The$ 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 $$24,000.$

February $9$ Purchased Sony notes for $$58,590.$

June $12$ Purchased Mattel bonds for $$44,000.$

December $31$ Fair values for debt $in$ the portfolio are Johnson & Johnson, $$25,700$; Sony, $$48,450$; and Mattel, $$56,050.$

Year $2$

April $15$ Sold all $of$ the Johnson & Johnson bonds for $$27,000.$

July $5$ Sold all $of$ the Mattel bonds for $$38,300.$

July $22$ Purchased Sara Lee notes for $$16,300.$

August $19$ Purchased Kodak bonds for $$17,750.$

December $31$ Fair values for debt $in$ the portfolio are Kodak, $$18,550$; Sara Lee, $$15,500$; and Sony, $$63,000.$

Year $3$

February $27$ Purchased Microsoft bonds for $$159,400.$

June $21$ Sold all $of$ the Sony notes for $$60,400.$

June $30$ Purchased Black & Decker bonds for $$53,900.$

August $3$ Sold all $of$ the Sara Lee notes for $$12,900.$

November $1$ Sold all $of$ the Kodak bonds for $$22,750.$

December $31$ Fair values for debt $in$ the portfolio are Black & Decker, $$56,700$; and Microsoft, $$159,300.$ Journal entry worksheet

Fair values for debt $in$ the portfolio are Johnson & Johnson, $$25,700$; Sony,

$$48,450$; and Mattel, $$56,050.$

Note: Enter debits before credits. Journal entry worksheet

Fair values for debt $in$ the portfolio are: Kodak, $$18,550$; Sara Lee, $$15,500$;

and Sony, $$63,000.$

Note: Enter debits before credits. Journal entry worksheet

$1$

$2$

$3$

$4$

$5q,$

Fair values for debt $in$ the portfolio are: Kodak, $$18,550$; Sara Lee, $$15,500$; and Sony, $$63,000.$

Note: Enter debits before credits.