Year 1 Jan. 18. Purchased 8,300 shares of Malmo Inc. as an available-for-sale investment at $36 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Sold 2,500 shares of Malmo Inc. stock at $39 per share less a brokerage commission of $40. Oct. 5 Dec. Received a regular cash dividend of $0.60 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 $34 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 $770,000 by purchasing 56,000 shares directly from the estate of the founder of Helsi. There are 140,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock Dec. Received a cash dividend of $0.70 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock 16 Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 in Year 2.1 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 $39 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $34 to $39 per share Unrealized Gain (Loss) on Available for Sale Investments 29,000 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 $562,000. Glbcier Prodicts, Inc Balance Sheet (selected items) December 31, Year 21 Current Assets: Available-for-Sale Investments (at Cost) 208,800 Plus Valuation Allowance for Available for-Sale Investments Available-for-Sale Investments (at Fair Value) Investments: Investment in Helsi Co. Stock Stockholders' Equity: 562,000 Retained Earings Unrealized Gain (Loss) on Available for-Sale Imvestaents Foedback Year 1 Jan. 18. Purchased 8,300 shares of Malmo Inc. as an available-for-sale investment at $36 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Sold 2,500 shares of Malmo Inc. stock at $39 per share less a brokerage commission of $40. Oct. 5 Dec. Received a regular cash dividend of $0.60 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 $34 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 $770,000 by purchasing 56,000 shares directly from the estate of the founder of Helsi. There are 140,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock Dec. Received a cash dividend of $0.70 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock 16 Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 in Year 2.1 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 $39 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment for the increase in fair value from $34 to $39 per share Unrealized Gain (Loss) on Available for Sale Investments 29,000 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 $562,000. Glbcier Prodicts, Inc Balance Sheet (selected items) December 31, Year 21 Current Assets: Available-for-Sale Investments (at Cost) 208,800 Plus Valuation Allowance for Available for-Sale Investments Available-for-Sale Investments (at Fair Value) Investments: Investment in Helsi Co. Stock Stockholders' Equity: 562,000 Retained Earings Unrealized Gain (Loss) on Available for-Sale Imvestaents Foedback
