Please Answer All Parts
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 $0.55 per share was received on the Malmo stock. Oct. 5. Sold 1,700 shares of Malmo Inc. stock at $46 per share less a brokerage commission of $40. Dec. Received a regular cash dividend of $0.55 per share on Malmo Inc. stock. 18. 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 $720,000 by purchasing 31,500 shares directly from the estate of the founder of Helsi. There are 90,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.65 per share on Malmo Inc. stock. Dec. Received a cash dividend of $0.65 per share plus an extra dividend of $0.15 per share on Malmo Inc. stock. 16. Dec. 31 Received $22,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $90,000 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. 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. July 22. Oct. 5. Dec. 18. Dec. 31 I Year 2 Jan. 25. July 16. Dec. 16. Dec. 31-Dividends Dec. 31-Income Dec. 31-Valuation 1 23 Octs Dec 18 Dec. 31 Ch 15 Pr 3 eBook Calculator Print Item Date Description Debit Credit Year Jan. 18 July 22 Oct. 5. Dec. 18. Dec. 31 Year 2 Jan. 25 July 16 Check My Work 1 more Check My Work uses remaining Assignment Score: 0.0% RE e 9 Ch 15 Pr 3 eBook Calculator Print Item 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 3 Glacier Products, Inc Balance Sheet (selected items) December 31, Year 2 Check My Work 1 more Check My Work Utes remaining Assignment Score: 0.0% BE + Dec. 31-Income Dec. 31-Valuation 2. Prepare the investment related asset and stockholders' equity balance sheet presentation for Glader Products Inc. on December 31, Year 2 ming that the Retained Earning balance on December 31 Year 2, 5525,000 Current DD de ViewSonic 1000
