er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: 2016 Jan. 18. Purchased 9,000 shares of Malmo Inc. as an available for sale investment at $40 per share, including the brokerage commission. July 22. A cash dividend of $3.00 per share was received on the Malmo stock. Oct. 5. Sold 500 shares of Malmo Inc. stock at $58.00 per share, less a brokerage commission of $100. Dec. 18. Received a regular cash dividend of $3.00 per share on Malmo Inc. stock. 31. Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $36.00 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. 2017 Jan. 25. Purchased an influential interest in Helsi Co. for $800,000 by purchasing 75,000 shares directly from the estate of the founder of Helsi. There are 250,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $3.00 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $3.00 per share plus an extra dividend of $0.20 per share on Malmo Inc. stock. 31. Received $38,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $170,000 in 2015. Glacier Products Inc. uses the equity method of accounting for its investment in Helsi Co. 31. Malmo Inc. is classified as an available for sale investment and is adjusted to a fair value of $44 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $36 to $44 per share. Instructions 1. Journalize the entries to record the preceding transactions. 2. Prepare the investment-related asset and stockholders' equity balance sheet presenta tion for Glacier Products Inc. on December 31, 2017, assuming the Retained Earnings balance on December 31, 2017, is $700,000