[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. Problem 15-2A (Algo): 3. Complete the following 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. (Losses should be indicated by a minus sign.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 52BE

See similar textbooks

Related questions

Question

Required information
Problem 15-2A (Algo) Recording, adjusting, and reporting available-for-sale debt
securities LO P3
[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 l 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.
Problem 15-2A (Algo):
3. Complete the following 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. (Losses should be indicated
by a minus sign.)
Year 1
Year 2
Year 3
Realized gains (losses)
Sale of Johnson & Johnson
Sale of Mattel
Sale of Sony
Sale of Sara Lee
Sale of Kodak
Total realized gains (losses)
$
0 $
Unrealized gains (losses) at year-end

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

I see the end portion. But it doesn't provide how they came up with that answer. Like the journal entries for each year showing all the purchases, adjustments, end of year, etc. Could you break it down by year showing how each one was obtained?

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions