Glacier Products Inc is a wholesaler of rock climbing gear

Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on
January 1, 2016. The following transactions relate to securities acquired by Glacier Products
Inc., which has a fiscal year ending on December 31:2016Jan. 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 $3.00 per share was received on the Malmo stock. Oct.
5. Sold 500 shares of Malmo Inc. stock at $58.00 per share, less a brokerage commission of
$100.Dec. 18. Received a regular cash dividend of $3.00 per share on Malmo Inc. stock.31.
Malmo Inc. is classified as an available-for-sale investment and is adjusted to a fair value of
$36.00 per share. Use the valuation allowance for available-for-sale investments account in
making the adjustment.2017 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 $3.00 per share on
Malmo Inc. stock.Dec. 16. Received a cash dividend of $3.00 per share plus an extra dividend
of $0.20 per share on Malmo Inc. stock.31. Received $38,000 of cash dividends on Helsi Co.
stock. Helsi Co. reported net income of $170,000 in 2015. Glacier Products Inc. uses the equity
method of accounting for its investment in Helsi Co.31. Malmo Inc. is classified as an available-
for-sale investment and is adjusted to a fair value of $44 per share. Use the valuation allowance
for available-for-sale investments account in making the adjustment for the increase in fair value
from $36 to $44 per share.Instructions1. Journalize the entries to record the preceding
transactions.2. Prepare the investment-related asset and stockholders' equity balance sheet
presentation for Glacier Products Inc. on December 31, 2017, assuming the Retained Earnings
balance on December 31, 2017, is $700,000.View Solution: Glacier Products Inc is a wholesaler
of rock climbing gear
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