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 5,800 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission.

July 22. A cash dividend of $0.65 per share was received on the Malmo stock.

Oct. 5. Sold 2,600 shares of Malmo Inc. stock at $47 per share less a brokerage commission of $45.

Dec. 18. Received a regular cash dividend of $0.65 per share on Malmo Inc. stock.

Dec. 31 Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of $39 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment.

Year 2

Jan. 25. Purchased an influential interest in Helsi Co. for $680,000 by purchasing 77,000 shares directly from the estate of the founder of Helsi. There are 220,000 shares of Helsi Co. stock outstanding.

July 16. Received a cash dividend of $0.75 per share on Malmo Inc. stock.

Dec. 16. Received a cash dividend of $0.75 per share plus an extra dividend of $0.10 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 $45 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $39 to $45 per share.

Required: 1. Journalize the entries to record the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places.

Date	Description	Debit	Credit
Year 1
Jan. 18.	Investments-Malmo Inc.
	Cash
July 22.	Investments-Malmo Inc.
	Cash
Oct. 5.
Dec. 18.
Dec. 31
Year 2
Jan. 25.
July 16.
Dec. 16.
Dec. 31-Dividends
Dec. 31-Income
Dec. 31-Valuation

2. Prepare the investment-related asset and stockholders equity balance sheet presentation for Glacier Products Inc. on December 31, Year 2, assuming that the Retained Earnings balance on December 31, Year 2, is $496,000.

Glacier Products, Inc. Balance Sheet (selected items) December 31, Year 2
Current Assets:
Investments:
Stockholders' Equity: