Year 1 an 18 Purchased 7200 shares of Malmo Inc as an available-for-sale investment at $48 per share including the brokerage commission July 22 A cash dividend of $040 per share was received
Year 1 an. 18. Purchased 7,200 shares of Malmo Inc. as an available-for-sale investment at $48 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 2,200 shares of Malmo Inc. stock at $53 per share less a brokerage commission of $40. 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 $45 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 $620,000 by purchasing 56,000 shares directly from the estate of the founder of Helsi. There are 160,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.50 per share on Malmo Inc, stock. Dec. Received a cash dividend of $0.50 per share plus an extra dividend of $0.15 per share on Malmo Inc. stock. 16. Dec. 31 Received $19,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $78,000 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 $52 per share. Use the valuation allowance for available for sale investments account in making the adjustment for the increase in fair value from $45 to $52 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 blan | 9,000 Dec. 31. Income Investment in Helsi Co. Stock Income of Helsi Co. Dec. 31- Valuation Valuation Allowance for Available-for-Sale Investments Unrealized Gain (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, assumingt 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 Feedback 1. Jan. 18, Year 1: Increase the investment for the purchase price.