Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities P3 Mead 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. Year1 Jan. 26 Feb. 9 Jume 12 Dec. 8 Year 2 Apr. 15 July 5 July uty Auge 19 Dec 31 Year 3 Febs 29 tune 21 June 30 Ange 3 Now. 1 Dec. 31 Required 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. 2. Prepare a 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. cank (2b) Fair Value Adj, bal.: 12/31/Year 1, \$3.910 Dr; 12/31/Year 2, \$5,085 Dr. 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. (3b) Unrealized Gain at 12/31/Year 3, \$2,000 Purchased Johnson \& Johnson bonds for \$20,500 Purchased Sony notes for $55,440 Purchased Mattel bonds for $40,500 Sold all of the Johnson \& Johnson bonds for $23,500 Sold all of the Mattel bonds for $35,850 Purchased Sara Lee notes for $13,500 Purchased Kodak bonds for $15,300 Fair values for debt in the portfolio are Kodak, \$17,325; Sara Lee, \$12,000; and Sony, \$60,000 Purchased Microsoft bonds for $160,800 Sold all of the Sony notes for $57,600 Purchased Black \& Decker bonds for $50,400 Sold all of the Sara Lee notes for $9,750 Sold all of the Kodak bonds for $20,475 Fair values for debt in the portfolio are Black \& Decker, $54,600, and Microsoft, $158,600