August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for $60,400. August 3 Sold all of the Sara Lee notes for $18,750. November 1 Sold all of the Kodak bonds for $26,975. December 31 Fair values for debt in the portfolio are Black & Decker, $60,600; and Microsoft, $160,600. 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.
August 19 Purchased Kodak bonds for $22,300. December 31 Fair values for debt in the portfolio are Kodak, $22,825; Sara Lee, $22,000; and Sony, $66,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $65,600. June 30 Purchased Black & Decker bonds for $60,400. August 3 Sold all of the Sara Lee notes for $18,750. November 1 Sold all of the Kodak bonds for $26,975. December 31 Fair values for debt in the portfolio are Black & Decker, $60,600; and Microsoft, $160,600. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![August 19 Purchased Kodak bonds for $22,300.
December 31 Fair values for debt in the portfolio are
Kodak, $22,825; Sara Lee, $22,000; and Sony,
$66,000.
Year 3
February 27 Purchased Microsoft bonds for $159,800.
June 21 Sold all of the Sony notes for $65,600.
June 30 Purchased Black & Decker bonds for $60,400.
August 3 Sold all of the Sara Lee notes for $18,750.
November 1 Sold all of the Kodak bonds for $26,975.
December 31 Fair values for debt in the portfolio are
Black & Decker, $60,600; and Microsoft,
$160,600.
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.
Complete this question by entering your ans
Year 1
Year 2
Year 3
Prepare journal entries to record these transaction
adjustments to the portfolio of long-term available
View transaction list
Journal entry worksheet
<
1
2 3 4 5
Sold all of the Johnson & Johnson bonds for $33,500.
Note: Enter debits before credits.
Date
General Journal
Credit
April 15
Record entry
Clear entry
View general
Debit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F623a8a2c-5054-47a2-aa7c-ee184bb3ab2f%2F386075ac-491e-4eb3-9611-2f82f01c2d56%2Fgpow4pn7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:August 19 Purchased Kodak bonds for $22,300.
December 31 Fair values for debt in the portfolio are
Kodak, $22,825; Sara Lee, $22,000; and Sony,
$66,000.
Year 3
February 27 Purchased Microsoft bonds for $159,800.
June 21 Sold all of the Sony notes for $65,600.
June 30 Purchased Black & Decker bonds for $60,400.
August 3 Sold all of the Sara Lee notes for $18,750.
November 1 Sold all of the Kodak bonds for $26,975.
December 31 Fair values for debt in the portfolio are
Black & Decker, $60,600; and Microsoft,
$160,600.
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.
Complete this question by entering your ans
Year 1
Year 2
Year 3
Prepare journal entries to record these transaction
adjustments to the portfolio of long-term available
View transaction list
Journal entry worksheet
<
1
2 3 4 5
Sold all of the Johnson & Johnson bonds for $33,500.
Note: Enter debits before credits.
Date
General Journal
Credit
April 15
Record entry
Clear entry
View general
Debit
![Required information
[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
$28,200.
February 9 Purchased Sony notes for $64,890.
June 12 Purchased Mattel bonds for $50,500.
December 31 Fair values for debt in the portfolio are
Johnson & Johnson, $33,500; Sony, $53,350;
and Mattel, $58,750.
Year 2
April 15
Sold all of the Johnson & Johnson bonds for
$33,500.
July 5 Sold all of the Mattel bonds for $42,850.
July 22 Purchased Sara Lee notes for $20,500.
August 19 Purchased Kodak bonds for $22,300.
December 31
Fair values for debt in the portfolio are
Kodak, $22,825; Sara Lee, $22,000; and Sony,
$66,000.
Year 3
February 27 Purchased Microsoft bonds for $159,800.
June 21 Sold all of the Sony notes for $65,600.
June 30 Purchased Black & Decker bonds for $60,400.
August 3 Sold all of the Sara Lee notes for $18,750.
November 1 Sold all of the Kodak bonds for $26,975.
December 31 Fair values for debt in the portfolio are
Black & Decker, $60,600; and Microsoft,
$160,600.
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.
Complete this question by entering your ans
Year 1
Year 2
Year 3
Prepare journal entries to record these transaction
adjustments to the portfolio of long-term available
View transaction list
?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F623a8a2c-5054-47a2-aa7c-ee184bb3ab2f%2F386075ac-491e-4eb3-9611-2f82f01c2d56%2Ffbjw9om_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[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
$28,200.
February 9 Purchased Sony notes for $64,890.
June 12 Purchased Mattel bonds for $50,500.
December 31 Fair values for debt in the portfolio are
Johnson & Johnson, $33,500; Sony, $53,350;
and Mattel, $58,750.
Year 2
April 15
Sold all of the Johnson & Johnson bonds for
$33,500.
July 5 Sold all of the Mattel bonds for $42,850.
July 22 Purchased Sara Lee notes for $20,500.
August 19 Purchased Kodak bonds for $22,300.
December 31
Fair values for debt in the portfolio are
Kodak, $22,825; Sara Lee, $22,000; and Sony,
$66,000.
Year 3
February 27 Purchased Microsoft bonds for $159,800.
June 21 Sold all of the Sony notes for $65,600.
June 30 Purchased Black & Decker bonds for $60,400.
August 3 Sold all of the Sara Lee notes for $18,750.
November 1 Sold all of the Kodak bonds for $26,975.
December 31 Fair values for debt in the portfolio are
Black & Decker, $60,600; and Microsoft,
$160,600.
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.
Complete this question by entering your ans
Year 1
Year 2
Year 3
Prepare journal entries to record these transaction
adjustments to the portfolio of long-term available
View transaction list
?
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