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Stock Investment Transactions, Equity Method and Avallable-for-Sale Securities Glacier Products Inc, is a wholesaler of rock climbing gear. The company began operations on January 1,

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Stock Investment Transactions, Equity Method and Avallable-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 ending on December 31: 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 Maimo Inc. stock. Dec. 31 Recelved $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 falr value of $44 per share. Use the valuation allowance for available-for-\$ale investments account in making the adjustment for the increase in fair value from $36 to $44 per share. 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-Income Investment in Helsi Co. Stock Income of Helsi Co. Dec. 31-Valuation Unrealized Gain (Loss) on Available-for-Sale Investments 2. Prepare the investment-related asset and stockholders' equity balance sheet presentation for Glacler Products Inc. on December 31 , Yea $700,000

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