1. 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 5,600 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission.
   July 22.	A cash dividend of $0.45 per share was received on the Malmo stock.
   Oct. 5.	Sold 2,500 shares of Malmo Inc. stock at $47 per share less a brokerage commission of $35.
   Dec. 18.	Received a regular cash dividend of $0.45 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 $40 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 $570,000 by purchasing 60,000 shares directly from the estate of the founder of Helsi. There are 150,000 shares of Helsi Co. stock outstanding.
   July 16.	Received a cash dividend of $0.55 per share on Malmo Inc. stock.
   Dec. 16.	Received a cash dividend of $0.55 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock.
   Dec. 31	Received $17,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $70,000 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 $46 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $40 to $46 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.	Cash Dividend Revenue Gain on Sale of Investments Income of Malmo Inc. Investments-Malmo Inc.
   	Cash Dividend Revenue Gain on Sale of Investments Income of Malmo Inc. Investments-Malmo Inc.
   July 22.	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   Oct. 5.	Cash Dividend Revenue Gain on Sale of Investments Income of Malmo Inc. Investments-Malmo Inc.
   	Cash Dividend Revenue Gain on Sale of Investments Income of Malmo Inc. Loss on Sale of Investments
   	Cash Dividend Revenue Gain on Sale of Investments Investments-Malmo Inc. Loss on Sale of Investments
   Dec. 18.	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   Dec. 31	Cash Investments-Malmo Inc. Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   	Cash Investments-Malmo Inc. Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   Year 2
   Jan. 25.	Cash Dividend Revenue Gain on Sale of Investments Income of Helsi Co. Investment in Helsi Co. Stock
   	Cash Dividend Revenue Gain on Sale of Investments Income of Helsi Co. Investment in Helsi Co. Stock
   July 16.	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   Dec. 16.	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   	Cash Dividend Revenue Income of Malmo Inc. Interest Revenue Investments-Malmo Inc.
   Dec. 31-Dividends	Cash Dividend Revenue Income of Helsi Co. Interest Revenue Investment in Helsi Co. Stock
   	Cash Dividend Revenue Income of Helsi Co. Interest Revenue Investment in Helsi Co. Stock
   Dec. 31-Income	Cash Dividend Revenue Income of Helsi Co. Interest Revenue Investment in Helsi Co. Stock
   	Cash Dividend Revenue Income of Helsi Co. Interest Revenue Investment in Helsi Co. Stock
   Dec. 31-Valuation	Cash Investments-Malmo Inc. Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   	Cash Investments-Malmo Inc. Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments

   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 $416,000.

   Glacier Products, Inc. Balance Sheet (selected items) December 31, Year 2
   Current Assets:
   Available-for-Sale Investments (at Cost) Available-for-Sale Investments (at Fair Value) Trading Investments (at Cost) Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   Less Unrealized Gain (Loss) on Available-for-Sale Investments Less Valuation Allowance for Available-for-Sale Investments Plus Unrealized Gain (Loss) on Available-for-Sale Investments Plus Valuation Allowance for Available-for-Sale Investments
   Available-For-Sale Investments (at Cost) Available-for-Sale Investments (at Fair Value) Trading Investments (at Cost) Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   Investments:
   Investment in Helsi Co. Stock Retained Earnings Trading Investments (at Cost) Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments
   Stockholders' Equity:
   Available-For-Sale Investments (at Cost) Investment in Helsi Co. Stock Retained Earnings Trading Investments (at Cost) Valuation Allowance for Available-for-Sale Investments
   Available-for-Sale Investments (at Fair Market Value) Investment in Helsi Co. Stock Trading Investments (at Cost) Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments