The beginning balance sheet of Four Seasons, Inc., included:

\[ \text { Investments in Affiliates ............... } \$ 1,057,000 \]

\(\qquad\)

The company completed the following investment transactions during the year:

Mar. 3 Purchased 5,000 shares of common stock as a trading investment, paying \(\$ 91 / 4\) per share. 4 Purchased new long-term investment in affiliate at cost of \(\$ 408,000\).

May 14 Received semiannual cash dividend of \(\$ 0.82\) per share on the trading investment purchased March 3.

June 15 Received cash dividend of \(\$ 27,000\) from affiliated company.

Aug. 28 Sold the trading investment (purchased on March 3) for \(\$ 101 / 2\) per share. Adjusted the entire investment to current market value and then recorded the sale.

Oct. 24 Purchased trading investments for \(\$ 226,000\).

Dec. 15 Received cash dividend of \(\$ 29,000\) from affiliated company.

31 Received annual reports from affiliated companies. Their total net income for the year was \(\$ 620,000\). Of this amount, Four Seasons' proportion is 30 percent.

The market value of trading investments is \(\$ 219,000\).

\section*{Required}
1. Record the transactions in the general journal of Four Seasons.
2. Post entries to the Investments in Affiliates T-account, and determine its balance at December 31. Do likewise for the Trading Investments T-account.
3. Show how to report the Trading Investments and the Investments in Affiliates at December 31 .