! 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 $28,000. Feb. 9 Purchased notes of Sony for $62, 190. June 12 Purchased bonds of Mattel for $48,000. Dec. 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,500; Sony, $52,850; and Mattel. $57,650. Year 2 Apr. 15 Sold all of the bonds of Johnson & Johnson for $31,000. July 5 Sold all of the bonds of Mattel for $41,100. July 22 Purchased notes of Sara Lee for $17,500. Aug. 19 Purchased bonds of Kodak for $20,550. Dec. 31 Pair values for debt in the portfolio are Kodak, $19.950; Sara Lee, $19,500; and Sony, $65,000. Year 3 Feb. 27 Purchased bonds of Microsoft for $159,800. June 21 Sold all of the notes of Sony for $63.600. June 30 Purchased bonds of Black & Decker for $57,900. Aug. 3. Sold all of the notes of Sara Lee for $16,500. Nov. 1 Sold all of the bonds of Kodak for $25,350. Dec. 31 fair values for debt in the portfolio are Black & Decker, 559,100; and Microsoft, $160,100. Complete this question by entering your answers in the tabs below. 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 Journal entry worksheet