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 6,200 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Oct. 5. Sold 1,900 shares of Malmo Inc. stock at $45 per share less a brokerage commission of $60. Dec. 18 Received a regular cash dividend of $0.60 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 $720,000 by purchasing 38,500 shares directly from the estate of the founder of Helsi. There are 110,000 shares of Helsi Co. stock outstanding.. July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock. Deca 16. Received a cash dividend of $0.70 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock. 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. Where I Lived, and Al Walden Where July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $0.70 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock. 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 $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, round per share amounts to two decimal places. Year 1 Jan. 18. Date Investments-Malmo Inc. Cash July 22.1 Cash Dividend Revenue Description Debit Credit Oct. 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 Dec. 31 Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available-for-Sale Investments Year 2 Jan. 25. Investment in Helsi Co. Stock Cash July 16. Cash Dividend Revenue Dec. 16. Cash Dividend Revenue Dec. 31-Dividends Cash Investment in Helsi Co. Stock Dec. 31-Dividends Cash Investment in Helsi Co. Stock Dec. 31-Income Investment in Helsi Co. Stock Income of Helsi Co. Dec. 31-Valuation Valuation Allowance for Available-for-Sale Investments K Unrealized Gain (Loss) on Available-for-Sale Investments V 2. Prepare the investment-related asset and stockholders' equity balance sheet presentation for Glacier Products Inc. on December 31, Year assuming that the Retained Earnings balance on December 31, Year 2, is $526,000. Current Acente Glacier Products, Ing Balance Sheet (selected items) December 31 Year 2 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 $526,000. Glacier Products, Inc 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) Investments: Investment in Helsi Co. Stock Stockholders' Equity: Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments