Isabella Company made small investments in the common stock of two companies during the current year. Isabella wishes to establish a long-term business relationship with each firm and purchased the shares as a good faith gesture. Each of the firms had millions of shares outstanding at the time.

a. Purchased 20,000 shares of Othello Company at $15 per share and paid a brokerage fee of $14,000.

b. Purchased 25,000 of the outstanding shares of Ferdinand Company for $16 per share and paid a brokerage fee of $18,000.

c. At year-end, the Othello shares had a market value of $350,000. The Ferdinand shares had a market value of $395,000.

At year-end, Isabella owned no other investments in common stock. Show how the two purchases of stock and the year-end information would be entered into Isabella’s accounting system. What information regarding these investments will you expect to see reported on the year-end balance sheet? Be specific as to account names, their location on the balance sheet, and dollar amounts.