The following transactions relate to Brown Company's long-term investments. Brown did not own any long-term investments prior to these transactions. Show 

(1) the necessary journal entries and 

(2) the relevant portions of each year's balance sheet and income statement that reflect these transactions for both years.

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Year 1 Sep. 9 Purchased 1,000 shares of Packard common stock for $80,000 cash. These shares represent 30% of Packard's outstanding shares. Oct. 2 17 Purchased 2,000 shares of AT&T common stock for $60,000 cash as a long-term investment. These shares represent less than a 1% ownership in AT&T. Purchased as a long-term investment 1,000 shares of Apple common stock for $40,000 cash. These shares are less than 1% of Apple's outstanding shares.