The following transactions relate to Brown Company’s long-term investments during 2012 and 2013. Brown did not own any long-term investments prior to 2012. Show (1) the appropriate journal entries and (2) the relevant portions of each year’s balance sheet and income statement that reflect these transactions for both 2012 and 2013.

2012 Sept. 9 Purchased 1,000 shares of Packard, Inc., common stock for $80,000 cash. These shares repre¬ sent 30% of Packard’s outstanding shares.

Oct. 2 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.

17 Purchased as a long-term investment 1,000 shares of Apple Computer common stock for $40,000 cash. These shares are less than 1% of Apple’s outstanding shares.

Nov. 1 Received $5,000 cash dividend from Packard.

30 Received $3,000 cash dividend from AT&T.

Dec. 15 Received $1,400 cash dividend from Apple.

31 Packard’s net income for this year is $70,000.

31 Fair values for the investments in equity securities are Packard, $84,000; AT&T, $48,000; and Apple Computer, $45,000.

31 For preparing financial statements, note the following post-closing account balances: Common Stock, $500,000, and Retained Earnings, $350,000.

2013 Jan. 1 Sold Packard, Inc., shares for $108,000 cash.

May 30 Received $3,100 cash dividend from AT&T.

June 15 Received $ 1,600 cash dividend from Apple Aug. 17 Sold the AT&T stock for $52,000 cash.
19 Purchased 2,000 shares of Coca-Cola common stock for $50,000 cash as a long-term invest¬ ment. The stock represents less than a 5% ownership in Coca-Cola.
Dec. 15 Received $1,800 cash dividend from Apple.
31 Fair values of the investments in equity securities are Apple, $39,000, and Coca-Cola, $48,000.
31 For preparing financial statements, note the following post-closing account balances: Common Stock, $500,000, and Retained Earnings, $410,000.