The beginning balance sheet of Gleason Corporation included the following: Equity-method Investment in NEW Software $581,000 Gleason Corporation completed the following investment transactions during the year: At year-end, the fair values of Gleason Corporation's investments are as follows: Lawrence, $ 39000; NEW, $ 719000.

Mar 16: Purchased 2200 shares of Lawrence, Inc., common stock as a long-term available-for-sale investment, paying $ 12.75 per share.

May 21 Received cash dividend of $ 1.00 per share on the Lawrence investment.

Aug 17 Received cash dividend of $ 92000 from NEW Software.

Dec 31 Received annual reports from NEW Software; net income for the year was $ 510000. Of this amount Gleason's proportion is 27 %.

1.Record the transactions in the journal of Gleason Corporation.

2.Post entries to the T-account for Equity-method Investment in NEW Software, and determine its balance at December 31.

3.Show how to report the Investment in Available-for-Sale Securities and the Equity-method Investment in NEW Software accounts on Gleason Corporation's balance sheet at December 31.