Question
Entries for equity investment of between 20%50% ownership Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1,
Entries for equity investment of between 20%50% ownership
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 20Y3. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31, 20Y3:
20Y3 | |
Jan. 25 | Purchased 42,000 shares of Helsi Co. common stock for $690,000. There are 120,000 shares of Helsi Co. stock outstanding. |
Dec. 31 | Received $21,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $86,000 in 20Y3. |
Required:
1. Journalize the entries to record the preceding transactions. If an amount box does not require an entry, leave it blank.
Date | Description | Debit | Credit |
---|---|---|---|
20Y3 | |||
Jan. 25 | fill in the blank 2 | fill in the blank 3 | |
fill in the blank 5 | fill in the blank 6 | ||
Dec. 31-Dividends | fill in the blank 8 | fill in the blank 9 | |
fill in the blank 11 | fill in the blank 12 | ||
Dec. 31-Income | fill in the blank 14 | fill in the blank 15 | |
fill in the blank 17 | fill in the blank 18 |
2. Should Glacier Product Inc.s investment in Helsi Co. be reported at fair value on its financial statements for the year ending December 31, 20Y3?
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