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 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 per share was received on the Malmo stock. Oct. 5. Sold 500 shares of Malmo Inc. stock at $58 per share less a brokerage commission of $100. Dec. 18. Received a regular cash dividend of $30 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 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment. Instructions: Journalize the transactions.
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 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 per share was received on the Malmo stock.
Oct. 5. Sold 500 shares of Malmo Inc. stock at $58 per share less a brokerage commission of $100.
Dec. 18. Received a regular cash dividend of $30 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 per share. Use the valuation allowance for available-for-sale investments account in making the adjustment.
Instructions:
Journalize the transactions.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
