(Learning Objectives 1, 2: Accounting for available-for-sale and equity-method investments) The beginning balance sheet of Noram Corporation included the following:

Noram completed the following investment transactions during the year:

At year-end, the fair market values of Noram’s investments are: Canton, $26,600; Rockaway,

$698,000.

❙ Requirements 1. Record the transactions in the journal of Noram Corporation.

2. Post entries to the T-account for Long-Term Investment in Rockaway and determine its balance at December 31.

3. Show how to report the Long-Term Available-for-Sale Investments and the Long-Term Investment in Rockaway accounts on Noram’s balance sheet at December 31.