Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 8,400 shares of Malmo Inc. as an available-for-sale investment at $48 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Oct. 5. Sold 2,500 shares of Malmo Inc. stock at $53 per share less a brokerage commission of $30. Dec. 18. Received a regular cash dividend of $0.60 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 $46 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 $630,000 by purchasing 45,500 shares directly from the estate of the founder of Helsi. There are 130,000 shares of Helsi Co. stock outstanding. July 16. Received a cash dividend of $0.70 per share on Malmo Inc. stock. Dec. 16. Received a cash dividend of $0.70 per share plus an extra dividend of $0.10 per share on Malmo Inc. stock. 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 $46 to $52 per share. 1. Journalize the entries to record the preceding transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. In your computations, round per share amounts to two decimal places. 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 $460,000
Allocation of Cost of service departments using Direct method. | |||||
From | Maintenance | Personnel | Printing | Developing | |
Service Department costs | $ 3,000.00 | $ 13,000.00 | $ 14,100.00 | $ 11,200.00 | |
Maintenance allocation | $ (3,000.00) | $ 750.00 | $ 2,250.00 | ||
Personnel allocation | $ (13,000.00) | $ 1,625.00 | $ 11,375.00 | ||
Totals | $ - | $ - | $ 16,475.00 | $ 24,825.00 | |
Workings : | |||||
Maintenance allocation | |||||
Printing : $3000 * 1700 /(1700+5100) | $ 750.00 | ||||
Developing : $3000 * 5100 /(1700+5100) | $ 2,250.00 | ||||
Personnel allocation | |||||
Printing : $13000*500/(500+3500) | $ 1,625.00 | ||||
Developing : $13000*3500/(500+3500) | $ 11,375.00 |
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January...
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 5,500 shares of Malmo Inc. as an available-for-sale investment at $54 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Oct. 5. Sold 2,500...
Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, Year 1. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 5,800 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received on the Malmo stock. Oct. 5. Sold 2,600...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 8,800 shares of Malmo Inc. as an available-for-sale investment at $54 per share, including the brokerage commission. July 22. A cash dividend of $0.60 per share was received...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 8,800 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...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 6,800 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission. July 22. A cash dividend of $0.65 per share was received...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 5,500 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...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 6,500 shares of Malmo Inc. as an available-for-sale investment at $48 per share, including the brokerage commission. July 22. A cash dividend of $0.45 per share was received...
Stock Investment Transactions, Equity Method and Available-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 to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31: Year 1 Jan. 18. Purchased 5,800 shares of Malmo Inc. as an available-for-sale investment at $42 per share, including the brokerage commission. July 22. A cash dividend of $0.55 per share was received...
er 15 Investments and Fair Value Accounting PR 15-3B Stock investment transactions, equity method and available-for-sale 03.3.4 securities 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...
Stock Investment Transactions, Equity Method and Available-rol-Sale Securities Roman Products, Inc., is a wholesaler of men's hair products. The company began operations on January 1, 2016. The following transactions relate to securities acquired by Roman Products, Inc which has a fiscal year ending on December 31: 2016 Jan. 3 Purchased 5,800 shares of Whalen Inc. as an available-for-sale security at $48 per share, including the brokerage commission. July 8 Received a cash dividend of $0.6 per share on the Whalen...