! Required information Problem 15-2A Recording, adjusting, and reporting available-for-sale debt securities LO P3 (The following information applies to the questions displayed below) 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 Year 1 Jan. 20 Purchased Johnson & Johnson bonds for $20,500. Feb. 9 Purchased notes of Sony for $55,440. June 12 Purchased bonds of Mattel for $40,500 Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,508; Sony, $52,see; and Mattel, $46,350. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $23,500. July 5 Sold all of the bonds of Mattel for $35,850. July 22 Purchased notes of Sara Lee for $13,500. Aug. 19 Purchased bonds of Kodak for $15,300. Dec. 31 Fair values for debt in the portfolio are Kodak, 517,325; Sara Lee, $12,000; and Sony, $60,000 Year 3 Feb. 27 Purchased bonds of Microsoft for $160,800. June 21 Sold all of the notes of Sony for $57,680. June 30 Purchased bonds of Black & Decker for $50, 400, Aug. 3 Sold all of the notes of Sara Lee for $9,750. Nov. 1 Sold all of the bonds of Kodak for $20,475. Dec. 31 Fair values for debt in the portfolio are Black & Decker, $54,680, and Microsoft, $158,688