Home / Questions / Glacier Products Inc. is a wholesaler of rock climbing gear The company began operations o...
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: 2016 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 $3.00 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. Instructions 1. 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 $700,000.
Apr 02 2020 View more View Less
Reread Chapters 7-9. Then test your comprehension of those chapters by completing the exercises that follow. Check your answers at the end of this chapter.Rooms at the Ri...
Jul 09 2021FAB Corporation will need 200,000 Canadian dollars (C$) in 90 days to cover a payable position. Currently, a 90-day call option with an exercise price of $.75 and a premi...
May 08 2021In the trade scenario in problem 1, due to overfishing, Norway becomes unable to catch the quantity of fish that it could in previous years. This change causes both a r...
Mar 30 2020What is a hydrocarbon? What is the difference between a saturated hydrocarbon and an unsaturated hydrocarbon? Distinguish between normal and branched hydrocarbons. What i...
Jul 18 2021Atkins Weight Loss Program An independent researcher tested the e¥ectiveness of the Atkins weight loss program by randomly selecting 1000 subjects using that program. E...
May 17 2021By Hand(no excel): You conduct a Stock Project analysis over a period of 4 quarters. You would invest $10,000 initially, earn dividends each quarter, and eventually sell ...
May 31 2021Which of the following is correct about the Limitations of accounting? Select one: O a. Accounting not looks at quality aspect O b. there is no bias in accounting c. Pric...
Apr 13 2021Suppose a firm has an EBIT of $1,400,000 and finances its assets with $6,000,000 of debt at 6 percent interest and 300,000 shares of stock selling at $12.50 a share. To l...
May 11 2021The Charm City Company is currently considering 4 proposals for investment. The table below displays each proposal's net present value (NPV) in millions of dollars and ea...
Aug 06 2020On May 2, Handy Hardware sent Ram Industries a signed purchase order that stated in part: "Ship for May 8 delivery 300 Model A-X socket sets at current dealer price. Term...
Aug 04 2021