| | 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. Record these transactions on page 11: | 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 2017. 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. | | Required: | | A. | Journalize the entries to record the preceding transactions. Be sure to enter the year as part of the date for the first entry on each page. Refer to the information given and the Chart of Accounts provided for the exact wording of the answer choices for text entries. | | B. | Prepare the investment-related asset and stockholders equity balance sheet presentation for Glacier Products Inc. on December 31, 2017, assuming the Retained Earnings balance on December 31, 2017, is $700,000. Refer to the Chart of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less or Plus will automatically appear if it is required. For those boxes in which you must enter subtractive or negative numbers use a minus sign. | CHART OF ACCOUNTS | | Glacier Products Inc. | | General Ledger | | | ASSETS | | 110 | Cash | | 111 | Petty Cash | | 120 | Accounts Receivable | | 121 | Allowance for Doubtful Accounts | | 131 | Notes Receivable | | 132 | Interest Receivable | | 141 | Merchandise Inventory | | 145 | Office Supplies | | 146 | Store Supplies | | 151 | Prepaid Insurance | | 161 | Investments-Malmo Inc. | | 163 | Investment in Helsi Co. Stock | | 165 | Valuation Allowance for Trading Investments | | 166 | Valuation Allowance for Available-for-Sale Investments | | 181 | Land | | 191 | Store Equipment | | 192 | Accumulated Depreciation-Store Equipment | | 193 | Office Equipment | | 194 | Accumulated Depreciation-Office Equipment | | | LIABILITIES | | 210 | Accounts Payable | | 221 | Notes Payable | | 231 | Interest Payable | | 241 | Salaries Payable | | 251 | Sales Tax Payable | | | EQUITY | | 311 | Common Stock | | 312 | Paid-In Capital in Excess of Par-Common Stock | | 321 | Preferred Stock | | 322 | Paid-In Capital in Excess of Par-Preferred Stock | | 331 | Treasury Stock | | 332 | Paid-In Capital from Sale of Treasury Stock | | 340 | Retained Earnings | | 350 | Unrealized Gain (Loss) on Available-for-Sale Investments | | 351 | Cash Dividends | | 352 | Stock Dividends | | 390 | Income Summary | Amount Descriptions | | | Available-for-sale investments (at cost) | | | Available-for-sale investments (at fair value) | | | Net income | | | Net loss | | | Other comprehensive income (loss) | | | Other income (loss) | | | Trading investments (at cost) | | | Trading investments (at fair value) | | | | | REVENUE | | 410 | Sales | | 611 | Interest Revenue | | 612 | Dividend Revenue | | 621 | Income of Helsi Co. | | 631 | Gain on Sale of Investments | | 641 | Unrealized Gain on Trading Investments | | | EXPENSES | | 511 | Cost of Merchandise Sold | | 512 | Bad Debt Expense | | 515 | Credit Card Expense | | 516 | Cash Short and Over | | 520 | Salaries Expense | | 531 | Advertising Expense | | 532 | Delivery Expense | | 533 | Repairs Expense | | 534 | Selling Expenses | | 535 | Rent Expense | | 536 | Insurance Expense | | 537 | Office Supplies Expense | | 538 | Store Supplies Expense | | 561 | Depreciation Expense-Store Equipment | | 562 | Depreciation Expense-Office Equipment | | 590 | Miscellaneous Expense | | 710 | Interest Expense | | 721 | Loss of Helsi Co. | | 731 | Loss on Sale of Investments | | 741 | Unrealized Loss on Trading Investments | | | | |
