eBook Stock Investment Transactions, Equity Method and Available-for-Sale Securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 7,100 shares of Malmo Inc. as an available-for-sale investment at $36 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Oct. 5. Dec. 18. Year 2 Sold 3,200 shares of Malmo Inc. stock at $41 per share less a brokerage commission of $35. Dec. 31 Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $33 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. Received a regular cash dividend of $0.60 per share on Malmo Inc. stock. Dec. 16. Jan. 25. Purchased an influential interest in Helsi Co. for $670,000 by purchasing 72,000 shares directly from the estate of the founder of Helsi. There are 180,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock. Received a cash dividend of $0.70 per share plus an extra dividend of $0.15 per share on Malmo Inc. stock. Dec. 31 Received $20,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $82,000 in Year 2. Glacier Products Inc. uses the equity method of accounting for its investment in Helsi Co. Dec. 31 Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $40 per share. Use the valuation allowance

Mranctoona, Cquity Methind and Avadable-for-Sole Secarities Products inc; which has a hiscal year endeng an Decesnber 31 : Year 1 July 22. A cash divitlend al 50.60 ber share was received on the Maimo stock: Dec. till. vear 2 ratate of the founder bi Hetai, There are 160,000 shares of rielur co stock outitanding. one. Dec: 31 Malme Inc. is dawufed an an avalable-for-sale investment and 5 adjusted to a fair value of 540 per share. Use the valuation allowance Required: 1. Jearnatise the entries to record the preceding trassactions, for a compound transaction, if an amount box does not require an entry, leave it blankic in your computations, round per share ameunts to two decimal places. 2. Prepare the invesument related asiet and stocholders' equity balance sheet presentation for Glanoer Products Inci on December 31, Year 2 , assuming that the Retained Eami halance on Decenber as, Year 2, is 34 fig, 000