Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1 . The following transactions relate to secur Year 1 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 per share was received on the Malmo stock. Oct. 5 Sold 500 shares of Malmo Inc. stock at $58 per share less a brokerage commission of $100. Dec. 18 Received a regular cash dividend of $3 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 $36 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 $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 per share on Malmo Inc. stock. Dec. 16 Received a cash dividend of $3 per share plus an extra dividend of $0.20 per share on Malmo Inc. stock. Dec. 31 Received $38,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $170,000 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 $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. 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. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow[t]{3}{*}{ Oct. 5} & \multicolumn{2}{|l|}{ Cash } & 28,900 & \multirow[t]{2}{*}{} & \multirow{2}{*}{\multicolumn{2}{|c|}{8,900}} \\ \hline & Gain on Sale of Investments & & & & & \\ \hline & Investments-Malmo Inc. & & & & 20,000 & \\ \hline \multirow[t]{2}{*}{ Dec. 18} & Cash & & 25,500 & & & \\ \hline & Dividend Revenue & & & & 25,500 & \\ \hline Dec. 31 & Unrealized Gain (Loss) on Available-for-Sale Investments & & 34,000 & & & \\ \hline & Valuation Allowance for Available-for-Sale Investments & & & & 34,000 & \\ \hline \multicolumn{7}{|l|}{ Year 2} \\ \hline \multirow[t]{2}{*}{ Jan. 25} & Investment in Helsi Co. Stock & & 800,000 & \multirow[t]{2}{*}{} & & \\ \hline & Cash & & & & 800,000 & \\ \hline \multirow[t]{2}{*}{ July 16} & \multicolumn{2}{|l|}{ Cash } & 25,500 & \multicolumn{2}{|l|}{} & \\ \hline & \multicolumn{2}{|l|}{ Dividend Revenue } & & & 25,500 & \\ \hline \multirow[t]{2}{*}{ Dec. 16} & \multicolumn{2}{|l|}{ Cash } & 27,200 & \multirow[t]{2}{*}{} & & \\ \hline & Dividend Revenue & & & & 27,200 & \\ \hline \multirow{2}{*}{\begin{tabular}{l} Dec. 31- \\ Dividends \end{tabular}} & \multicolumn{2}{|l|}{ Cash } & 38,000 & \multirow[t]{2}{*}{} & & \\ \hline & Investment in Helsi Co. Stock & & & & 38,000 & \\ \hline \multirow[t]{2}{*}{ Dec. 31-Income } & Investment in Helsi Co. Stock & & 170,000 & \multirow[t]{2}{*}{x} & & \\ \hline & Income of Helsi Co. & & & & 170,000 & x \\ \hline \multirow{2}{*}{\begin{tabular}{l} Dec. 31- \\ Valuation \end{tabular}} & Valuation Allowance for Available-for-Sale Investments & & 68,000 & \multicolumn{2}{|l|}{} & \\ \hline & Unrealized Gain (Loss) on Available-for-Sale Investments & & & & 68,000 & \\ \hline \end{tabular} Theck My Work 1. Jan. 18, Year 1: Increase the investment for the purchase price. July 22, Year 1: Record the revenue earned. Oct. 5, Year 1: When recording the cash received, consider the amount of the brokerage commission. To complete the entry determine any gain or loss to be recorded. Dec. 18, Year 1: Calculate the remaining shares of Malmo Stock. Record the revenue earned. Jan. 25, Year 2: Increase the investment for the purchase price. July 16, Year 2: Record the revenue earned. Dec. 16, Year 2: Record the revenue earned. Dec. 31, Year 2: Under the equity method of accounting for investments, the dividends earned and share of income affect the investment account. Dec. 31: Determine if any unrealized gain/loss should be recorded at year end. 2. Consider how the valuation allowance and any unrealized gain/loss are reported on the balance sheet