The beginning balance sheet of Segui Corporation included the following: Long-term Investment in NEW software (euity-method investment) $616,000. Segui completed the following investment transactions during the year: MAR 16 Purchased 1,600 shares of Hubbardston, Inc., common stock as a long-term available-for-sale investment, paying $12.75 per share. MAY 21- Received cash dividend of $1.50 per share on the Hubbardston investment. AUG 17- Received cash dividend of $85,000 from NEW software. DEC 31- Received annual reports from NEW software, net income for the year was $500,000. Of this amount Segui's proportion is 23%. At year-end, the fair market values of Segui's investments are: Hubbardston, $26,100; NEW $701,000.
REQUIREMENTS:
(1) Record the transactions in the journal of Segui Corporation.
(2) Post entries to the T-account for long-term investment in NEW and determine its balance at December 31.
(3) Show how to report the Long-term available- for-sale investment and long-term investment in NEW accounts on Segui's balance sheet at December 31.