Stock Investment Transactions, Equity Method and Available-for-Sale Securities 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 31:1 Year 1 Jan. 18. Purchased 7,300 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission. July 22. A cash dividend of $0.40 per share was received on the Malmo stock Oct. 5. Sold 3,300 shares of Malmo Inc. stock at $45 per share less a brokerage commission of $55. Dec 18. Received a regular cash dividend of $0.40 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. Year 2 Use the valuation allowance for available for sale investments account in making the adjustment. Jan. 25. Purchased an influential interest in Helsi Co. for $560,000 by purchasing 70,000 shares directly from the estate of the founder of Helsi. There are 200,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc. stock. Dec 16. Received a cash dividend of $0.50 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, Glacer Products Inc. uses the equity method of accounting for its investment in Heli Co 16 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 $45 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 $45 per share Required: 1. Journalize ntries to record the preceding transactions for a compound transaction, if an amount box does not require on entry, leave it blank. In your computations, mund per share amounts to two decimal places Year 1 Jan. 18. July 22. Oct. 5. Date Description Debit Credit July 22. Oct. 5. Dec. 18. Dec. 311 Year 2 Jan. 25. 000 0 Year 21 Jan. 25 July 16, Dec. 16. Dec. 31-Dividends Dec. 31-Income Dec. 31-Valuation Previou 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 Read Eag balance on December 31, Year 2, is $409,000. Glacier Products, Inc. Balance Sheet (selected items) Tommier 31, Year 2 Current Assets Investments Dec. 31-Valuation 2. Prepare the investment-related asset and stockholders' equity balance sheet presentation for Glacier Products Inc. on December 31, Year 2, auming that the Retained Earnings balance on December 31, Year 2, is $409,000. Current Assets: Investments: Glacies Products Inc Balance Sheet (selected items) December 31, Year 2 Stockholders' Equity eBook Stock Investment Transactions, Equity Method and Available-for-Sale Securities 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 Glacer Products Inc, which has a fiscal year ending on December 31: Year 1 Jan. 16. Purchased 7,300 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission. July 22. A cash dividend of $0.40 per share was received on the Malmo stock. Oct. 5. Sold 3,300 shares of Malmo Inc. stock at $45 per share less a brokerage commission of $55, Dec Received a regular cash dividend of $0.40 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 $560,000 by purchasing 70,000 shares directly from the estate of the founder of Helsi. There are 200,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc. stock Dec 16. Received a cash dividend of $0.50 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. Year 2 Jan. 25. Purchased an influential interest in Helsi Co. for $560,000 by purchasing 70,000 shares directly from the estate of the founder of Helsi. There are 200,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $0.50 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 $45 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 $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, sound per share amounts to two decimal places. Year 1 Jan. 18. Date Description Debit Credit eBook 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 $409,000. Current Assets: Investments Glacier Products, tic Balance Sheet (selected items) Decemdme 31, Year 2 Stockholders' Equity eBook Stock Investment Transactions, Equity Method and Available-for-Sale Securities 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 7,300 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission July 22. A cash dividend of $0.40 per share was received on the Malmo stock Oct. 5. Sold 3,300 shares of Malmo Inc. stock at $45 per share less a brokerage commission of $55. Dec. 16. Received a regular cash dividend of $0.40 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. Year 2 Use the valuation allowance for available-for-sale investments account in making the adjustment. Jan. 25. Purchased an influential interest in Helsi Co. for $560,000 by purchasing 70,000 shares directly from the estate of the founder of Helsi. There are 200,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc. stock. Dec 16. Received a cash dividend of $0.50 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. Me tue podemo stock. Oct. 5. Sold 3,300 shares of Malmo Inc. stock at $45 per share less a brokerage commission of $55. Dec. Received a regular cash dividend of $0.40 per share on Malmo Inc. stock. 18. 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 $560,000 by purchasing 70,000 shares directly from the estate of the founder of Helsi. There are 200,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $0.50 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 $45 per share. Use the valuation allowance Required: for available-for-sale investments account in making the adjustment for the increase in fair value from $40 to $45 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. Check My Work Previous Required: 1. Journalize the entries to record the pering transactions. For a compound transaction, if an amount box does not require an entry, leave it blank in your computation, round per she amounts to two decimal plac Year 1 Jan. 18 Date Investments Malino Inc Cash July 22. Cash Dividend Revenue Description Oct. 5 Cash Gain on Sale of Investments Investments-Malmo Inc. Dec. 18 Cash Check My Work Debit Credit Previous CO Chapter 15) eBook 7.5. Cash Gain on Sale of Investments Investments-Malmo Inc Dec. 18. Cash Dividend Revenue Dec. 31 Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available for Sale Investments Year 2 Jan 25 Devestment in Helsi Co. Stock Cash July 16 Cas Year 2 Jan. 25. Investment in Helsi Co. Stock Cash July 16.1 Cash Dividend Revenue Dec. 16. Cash Dividend Revenue Dec. 31-Dividends Cash Dec. 31-Income Investment in Helsi Co. Stock Investment in Helsi Co. Stock Income of Helsi Co. Dec. 31-Valuation Valuation Allowance for Available-for-Sale Investments eBook Investment in Helm Co. block Dec. 31-Income Investment in Helsi Co, Stock Income of Helsi Co. Dec. 31-Valuation. Valuation Allowance for Available-for-Sale Investments Unalized Gam (Loss) on 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 $409,000. Glacier Products, the Balance Sheet (selected items) December 31, Year 2 Current Assets: Available-for-Sale Investments (at Cost) Plus Valuation Allowance for Available-for-Sale Investments Available-for-Sale Investments (at Fair Value) Current sets: Balance Sheet (selected items) December 31, Year 2 Available-for-Sale Investments (at Cost) Plus Valuation Allowance for Available-for-Sale Investments Available-for-Sale Investments (at Fair Value) Investments: Investment in Helsi Co. Stock Stockholders' Equity: Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments. Feedback