P16-2A The beginning balance sheet of Quill.com, Inc.. included the following: Long-Term Equity-Method Investments................ $657.000 During the year the company completed the following investment transactions: Mar. 3 4 May 14 June 15 Oct. 24 Dec. 15 31 31 Purchased 5,000 shares of LBO Software common stock as a long-term avail- able-for-sale investment, paying $9.25 per share. Purchased new long-term equity-method investment at cost of $408,000. Received cash dividend of $0.82 per share on the LBO investment. Received cash dividend of $27,000 from equity-method investment. Purchased long-term available-for-sale investment in Eastern Communication stock for $226.000. Received cash dividend of $31.000 from equity-method investment. Received annual reports from equity-method investee companies. Their total net income for the year was $620,000. Of this amount, Quill.com's proportion is 25%. Adjusted the available-for-sale investments to market value. The market values of Quill.com's investments are LBO, $49,100; Eastern. $221.000. Required 1. Record the transactions in the journal of Quill.com, Inc. 2. Post entries to the Long-Term Equity-Method Investments T-account, and determine its balance at December 31. Do likewise for the Long-Term Available-for-Sale Investments T-account and the Allowance to Adjust Investments to Market T-account. 3. Show how to report the Long-Term Available-for-Sale Investments and the Long-Term Equity-Method Investments on Quill.com's balance sheet at December 31.