vesunens i avaravie visare securues. Year 1 January 20 Purchased Johnson & Johnson bonds for $26,500. February 9 Purchased Sony notes for $60,840. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,700; Sony, $49,950; and Mattel, $55,250. Year 2 April 15 July 5 July 22 August 19 Purchased Sara Lee notes for $16,300. Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and Sony, $63,000. Year 3 Sold all of the Johnson & Johnson bonds for $29,500. Sold all of the Mattel bonds for $40,050. February 27 Purchased Microsoft bonds for $159,400. June 21 Sold all of the Sony notes for $62,400. June 30 Purchased Black & Decker bonds for $56,400. August 3 Sold all of the Sara Lee notes for $15, 150. November 1 Sold all of the Kodak bonds for $24,375. December 31 Fair values for debt in the portfolio are Black & Decker, $58, 200; and Microsoft, $159,800. Problem 15-2A (Algo) Part 1 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.
vesunens i avaravie visare securues. Year 1 January 20 Purchased Johnson & Johnson bonds for $26,500. February 9 Purchased Sony notes for $60,840. June 12 Purchased Mattel bonds for $46,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,700; Sony, $49,950; and Mattel, $55,250. Year 2 April 15 July 5 July 22 August 19 Purchased Sara Lee notes for $16,300. Purchased Kodak bonds for $19,500. December 31 Fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and Sony, $63,000. Year 3 Sold all of the Johnson & Johnson bonds for $29,500. Sold all of the Mattel bonds for $40,050. February 27 Purchased Microsoft bonds for $159,400. June 21 Sold all of the Sony notes for $62,400. June 30 Purchased Black & Decker bonds for $56,400. August 3 Sold all of the Sara Lee notes for $15, 150. November 1 Sold all of the Kodak bonds for $24,375. December 31 Fair values for debt in the portfolio are Black & Decker, $58, 200; and Microsoft, $159,800. Problem 15-2A (Algo) Part 1 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
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Transcribed Image Text:vesunens i avaravie visare securues.
Year 1
January 20 Purchased Johnson & Johnson bonds for $26,500.
February 9 Purchased Sony notes for $60,840.
June 12 Purchased Mattel bonds for $46,500.
December 31 Fair values for debt in the portfolio are Johnson & Johnson, $30,700; Sony, $49,950; and Mattel, $55,250.
Year 2
April 15
July 5
July 22
August 19
Purchased Sara Lee notes for $16,300.
Purchased Kodak bonds for $19,500.
December 31 Fair values for debt in the portfolio are Kodak, $19,425; Sara Lee, $18,000; and Sony, $63,000.
Year 3
Sold all of the Johnson & Johnson bonds for $29,500.
Sold all of the Mattel bonds for $40,050.
February 27 Purchased Microsoft bonds for $159,400.
June 21 Sold all of the Sony notes for $62,400.
June 30 Purchased Black & Decker bonds for $56,400.
August 3 Sold all of the Sara Lee notes for $15, 150.
November 1 Sold all of the Kodak bonds for $24,375.
December 31 Fair values for debt in the portfolio are Black & Decker, $58, 200; and Microsoft, $159,800.
Problem 15-2A (Algo) Part 1
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.
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