The beginning Balance Sheet of Nora Corporation included the following:

Long-Term Investment in Rockaway Software (equity-method investment) ........... $612,000

Nora completed the following investment transactions during the year:

Mar 16 Purchased 1,400 shares of Canton, Inc., as a long-term available-for-sale investment, paying $14 per share.

May 21 Received cash dividend of $1.85 per share on the Canton investment.

Aug 17 Received cash dividend of $86,000 from Rockaway Software.

Dec 31 Received annual reports from Rockaway Software; net income for the year was $520,000. Of this amount Noras proportion is 20%.

At year-end, the fair market values of Noras investments are as follows:

Canton, $26,600

Rockaway, $698,000

Requirements:

1. Record the transactions in the journal of Nora Corporation.
2. Post entries to the T-account for Long-Term Investment in Rockaway and determine its balance at December 31.
3. Show how to report the Long-Term Available-for-Sale Investments and the Long-Term Investment in Rockaway accounts on Noras Balance Sheet at December 31.