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Problem $15-2$A $($Algo$)$ Recording, adjusting, and reporting available$-$for$-$sale debt securities LO P$3$

$[$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 $$21,000.$

February $9$ Purchased Sony notes for $$55,890.$

June $12$ Purchased Mattel bonds for $$41,000.$

December $31$ Fair values for debt in the portfolio are Johnson & Johnson, $$22,100$; Sony, $$46,650$; and Mattel,

Year $2$

April $15$ Sold all of the Johnson & Johnson bonds for $$24,000.$

July $5$ Sold all of the Mattel bonds for $$36,200.$

July $22$ Purchased Sara Lee notes for $$13,900.$

August $19$ Purchased Kodak bonds for $$15,650.$

December $31$ Fair values for debt in the portfolio are Kodak, $$17,500$; Sara Lee, $$12,500$; and Sony, $$60,000.$

Year $3$

February $27$ Purchased Microsoft bonds for $$159,600.$

June $21$ Sold all of the Sony notes for $$58,000.$

June $30$ Purchased Black & Decker bonds for $$50,900.$

August $3$ Sold all of the Sara Lee notes for $$10,200.$

November $1$ Sold all of the Kodak bonds for $$20,800.$

December $31$ Fair values for debt in the portfolio are Black & Decker, $$54,900$; and Microsoft, $$158,700.$

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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 avallable$-$for$-$sale debt securities

Help needed with year $2$ and $3$