Answered: Glacier Products Inc. is a wholesaler…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Glacier Products Inc. is a wholesaler of rock climbing gear. The company began operations on January 1, 20Y3. The following transactions relate to securities acquired by Glacier Products Inc., which has a fiscal year ending on December 31, 20Y3:

20Y3
Jan. 25	Purchased 66,500 shares of Helsi Co. common stock for $640,000. There are 190,000 shares of Helsi Co. stock outstanding.
Dec. 31	Received $19,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $78,000 in 20Y3.

Required:

1. Journalize the entries to record the preceding transactions. If an amount box does not require an entry, leave it blank.

Date	Debit	Credit
20Y3
Jan. 25	fill in the blank 2	fill in the blank 3
	fill in the blank 5	fill in the blank 6

Dec. 31-Dividends	fill in the blank 8	fill in the blank 9
	fill in the blank 11	fill in the blank 12

Dec. 31-Income	fill in the blank 14	fill in the blank 15
	fill in the blank 17	fill in the blank 18

2. Should Glacier Product Inc.’s investment in Helsi Co. be reported at fair value on its financial statements for the year ending December 31, 20Y3?

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