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 35,000 shares of Helsi Co. common stock for $770,000. There are 100,000 shares of Helsi Co. stock outstanding.
Dec. 31	Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 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	CashDividend RevenueGain on Sale of InvestmentsIncome of Helsi Co.Investment in Helsi Co. StockInvestment in Helsi Co. Stock	fill in the blank 2	fill in the blank 3
	CashDividend RevenueGain on Sale of InvestmentsIncome of Helsi Co.Investment in Helsi Co. StockCash	fill in the blank 5	fill in the blank 6
Dec. 31-Dividends	CashDividend RevenueIncome of Helsi Co.Interest RevenueInvestment in Helsi Co. StockCash	fill in the blank 8	fill in the blank 9
	CashDividend RevenueIncome of Helsi Co.Interest RevenueInvestment in Helsi Co. StockInvestment in Helsi Co. Stock	fill in the blank 11	fill in the blank 12
Dec. 31-Income	CashDividend RevenueIncome of Helsi Co.Interest RevenueInvestment in Helsi Co. StockInvestment in Helsi Co. Stock	fill in the blank 14	fill in the blank 15
	CashDividend RevenueIncome of Helsi Co.Interest RevenueInvestment in Helsi Co. StockIncome of Helsi Co.	fill in the blank 17	fill in the blank 18

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Transactions for Bond (Held-to-Maturity) Investments

Rekya Mart Inc. is a general merchandise retail company that began operations on January 1, 20Y5. The following are bond (held-to-maturity) transactions by Rekya Mart Inc., which has a fiscal year ending on December 31:

20Y5
Apr. 1.	Purchased $36,000 of Smoke Bay 7%, 10-year bonds at their face amount plus accrued interest of $420. The bonds pay interest semiannually on February 1 and August 1.
May 16.	Purchased $98,000 of Geotherma Co. 6%, 12-year bonds at their face amount plus accrued interest of $245. The bonds pay interest semiannually on May 1 and November 1.
Aug. 1.	Received semiannual interest on the Smoke Bay bonds.
Sept. 1.	Sold $14,400 of Smoke Bay bonds at 104 plus accrued interest of $84.
Nov. 1.	Received semiannual interest on the Geotherma Co. bonds.
Dec. 31	Accrued interest on the Smoke Bay bonds.
Dec. 31	Accrued interest on the Geotherma Co. bonds.
20Y6
Feb. 1.	Received semiannual interest on the Smoke Bay bonds.
May 1.	Received semiannual interest on the Geotherma Co. bonds.

Required:

1. Journalize the entries to record these transactions. If an amount box does not require an entry, leave it blank. Do not round your intermediate calculations and round final answers to the nearest dollar. Use the nearest whole month for the interest period.

DateDescriptionDebitCredit20Y5 Apr. 1.

Bonds PayableCashInterest RevenueInvestments-Smoke Bay BondsNotes ReceivableInvestments-Smoke Bay Bonds

fill in the blank 2fill in the blank 3

CashInterest ReceivableInterest RevenueInterest RevenueNotes ReceivableInterest Receivable

fill in the blank 5fill in the blank 6

Bonds PayableCashInterest ReceivableInvestments-Smoke Bay BondsNotes ReceivableCash

fill in the blank 8fill in the blank 9 May 16.

Bonds PayableCashInterest RevenueInvestments-Geotherma Co. BondsNotes ReceivableInvestments-Geotherma Co. Bonds

fill in the blank 11fill in the blank 12

CashInterest PayableInterest ReceivableInterest RevenueNotes ReceivableInterest Receivable

fill in the blank 14fill in the blank 15

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsCash

fill in the blank 17fill in the blank 18 Aug. 1.

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsCash

fill in the blank 20fill in the blank 21

CashInterest PayableInterest ReceivableInvestments-Smoke Bay BondsNotes ReceivableInterest Receivable

fill in the blank 23fill in the blank 24

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsInterest Revenue

fill in the blank 26fill in the blank 27 Sept. 1.

CashGain on Sale of InvestmentInterest PayableInvestments-Smoke Bay BondsRetained EarningsCash

fill in the blank 29fill in the blank 30

Bonds PayableInterest RevenueLoss on Sale of InvestmentNotes ReceivableRetained EarningsInterest Revenue

fill in the blank 32fill in the blank 33

CashGain on Sale of InvestmentInterest ReceivableInterest RevenueLoss on Sale of InvestmentGain on Sale of Investment

fill in the blank 35fill in the blank 36

CashInterest RevenueInvestments-Smoke Bay BondsLoss on Sale of InvestmentNotes ReceivableInvestments-Smoke Bay Bonds

fill in the blank 38fill in the blank 39 Nov. 1.

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsCash

fill in the blank 41fill in the blank 42

CashInterest PayableInterest ReceivableInvestments-Geotherma Co. BondsNotes ReceivableInterest Receivable

fill in the blank 44fill in the blank 45

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsInterest Revenue

fill in the blank 47fill in the blank 48 Dec. 31 Smoke Bay

CashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsNotes ReceivableInterest Receivable

fill in the blank 50fill in the blank 51

CashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsNotes ReceivableInterest Revenue

fill in the blank 53fill in the blank 54 Dec. 31 Geotherma Co.

CashInterest ExpenseInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsInterest Receivable

fill in the blank 56fill in the blank 57

CashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsNotes ReceivableInterest Revenue

fill in the blank 59fill in the blank 60 20Y6 Feb. 1.

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsCash

fill in the blank 62fill in the blank 63

CashInterest PayableInterest ReceivableInvestments-Smoke Bay BondsNotes ReceivableInterest Receivable

fill in the blank 65fill in the blank 66

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Smoke Bay BondsInterest Revenue

fill in the blank 68fill in the blank 69 May 1.

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsCash

fill in the blank 71fill in the blank 72

CashInterest PayableInterest ReceivableInvestments-Geotherma Co. BondsNotes ReceivableInterest Receivable

fill in the blank 74fill in the blank 75

Bonds PayableCashInterest ReceivableInterest RevenueInvestments-Geotherma Co. BondsInterest Revenue

fill in the blank 77fill in the blank 78