Required information[The following information applies to the questionsdisplayed below.]Mead Incorporated began operations in Year 1. Following isa series of transactions and events involving its long-termdebt investments in available-for-sale securities.Year 1January 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 areJohnson & Johnson, $33,500; Sony, $53,350;and Mattel, $58,750.Year 2April 15Sold all of the Johnson & Johnson bonds for$33,500.July 5Sold 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 areKodak, $22,825; Sara Lee, $22,000; and Sony,$66,000.Year 3February 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 areBlack & Decker, $60,600; and Microsoft,$160,600.Required:1. Prepare journal entries to record these transactions andthe year-end fair value adjustments to the portfolio of long-term available-for-sale debt securities.Complete this question by entering your ansYear 1Year 2Year 3Prepare journal entries to record these transactionadjustments to the portfolio of long-term availableView transaction listJournal entry workshoot Check my workAugust 19 Purchased Kodak bonds for $22,300.December 31 Fair values for debt in the portfolio areKodak, $22,825; Sara Lee, $22,000; and Sony,$66,000.Year 3February 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 31Fair values for debt in the portfolio areBlack & Decker, $60,600; and Microsoft,$160,600.equired:Prepare journal entries to record these transactions andle year-end fair value adjustments to the portfolio of long-erm available-for-sale debt securities.Complete this question by entering your answYear 1Year 2Year 3Prepare journal entries to record these transactionsadjustments to the portfolio of long-term available-fView transaction listJournal entry worksheet12 3 4Purchased bonds of Johnson & Johnson for $28,200.Note: Enter debits before credits.DateGeneral JournalCreditJanuary 20 Bonds payableRecord entryView general joClear entryDebit28,200

journal entry of above transaction are as follows

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.

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.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 1PB: Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1....

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Soto Industries Inc. is an athletic footware company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Soto Industries Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record these transactions. 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?
Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, Year 1. The following transactions relate to debt investments acquired by Rekya Mart Inc., which has a fiscal year ending on December 31: Instructions 1. Journalize the entries to record these transactions. 2. If the bond portfolio is classified as available for sale, what impact would this have on financial statement disclosure?
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…
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 $25,500. February 9 Purchased Sony notes for $59,940. June 12 Purchased Mattel bonds for $45,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $29,500; Sony, $49, 350; and Mattel, $54,750. Year 2 April 15 July 5 Sold all of the Mattel bonds for $39,350. Sold all of the Johnson & Johnson bonds for $28,500. July 22 Purchased Sara Lee notes for $15,500. August 19 Purchased Kodak bonds for $18,800. December 31 Fair values for debt in the portfolio are Kodak, $19,075; Sara Lee, $17,000; and Sony, $62,000. Year 3 February 27 Purchased Microsoft bonds for $159,800. June 21 Sold all of the Sony notes for $61,600. June 30 Purchased Black & Decker bonds for…
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. Purchased Sony notes for $64,890. Purchased Mattel bonds for $50,500. Fair values for debt in the portfolio are Johnson & Johnson, $33,500; Sony, $53,350; and Mattel, $58,750. February 9 June 12 December 31 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…
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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 $25,000. February 9 Purchased Sony notes for $59,490. June 12 Purchased Mattel bonds for $45,000. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $26,900; Sony, $49,050; and Mattel, $55,950. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $28,000. July 5 Sold all of the Mattel bonds for $39,000. July 22 Purchased Sara Lee notes for $17,100. August 19 Purchased Kodak bonds for $18,450. December 31 Fair values for debt in the portfolio are Kodak, $18,900; Sara Lee, $16,500; and Sony, $63,000. Year 3 February 27 Purchased Microsoft bonds for $161,000. June 21 Sold all of the Sony notes for $61,200. June 30 Purchased Black & Decker bonds for $54,900. August 3 Sold all of the Sara…
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 $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 Sold all of the Johnson & Johnson bonds for $23,500. Sold all of the Mattel bonds for $35,850. April 15 July 5 July 22 August 19 Purchased Sara Lee notes for $13,500. Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara Lee notes for $9,750. November 1 Sold all of the…
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 $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $23,500. July 5 Sold all of the Mattel bonds for $35,850. July 22 Purchased Sara Lee notes for $13,500. August 19 Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara Lee notes for $9,750. November 1 Sold all of the…
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 $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 Sold all of the Johnson & Johnson bonds for $23,500. July 5 Sold all of the Mattel bonds for $35,850. July 22 Purchased Sara Lee notes for $13,500. August 19 Purchased Kodak bonds for $15,300. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara…
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 $20,500. February 9 Purchased Sony notes for $55,440. June 12 Purchased Mattel bonds for $40,500. December 31 Fair values for debt in the portfolio are Johnson & Johnson, $21,500; Sony, $52,500; and Mattel, $46,350. Year 2 April 15 July 5 July 22 August 19 Purchased Kodak bonds for $15,300. Purchased Sara Lee notes for $13,500. December 31 Fair values for debt in the portfolio are Kodak, $17,325; Sara Lee, $12,000; and Sony, $60,000. Sold all of the Johnson & Johnson bonds for $23,500. Sold all of the Mattel bonds for $35,850. Year 3 February 27 Purchased Microsoft bonds for $160,800. June 21 Sold all of the Sony notes for $57,600. June 30 Purchased Black & Decker bonds for $50,400. August 3 Sold all of the Sara Lee notes for $9,750. November 1 Sold all of the…
Counting 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 Disney bonds for $45,500. Feb. 9 Purchased notes of Target for $69,490. June 12 Purchased bonds of Game Stop for $35,000. Dec. 31 Fair values for debt in the portfolio are Disney $52,000, Target $65,000, and Game Stop $36,500. Year 2 Apr. 15 Sold all of the bonds of Disney for $52,000. July 5 Sold all of the bonds of Game Stop for $39,000. July 22 Purchased notes of McDonalds for $37,100. Aug. 19 Purchased bonds of Amazon for $28,450. Dec. 31 Fair values for debt in the portfolio are Target $71,000, McDonalds $38,000, Amazon $32,000 Prepare journal entries for the transactions