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 56,000 shares of Helsi Co. common stock for $760,000. There are 160,000 shares of Helsi Co. stock outstanding. Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 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 Description Debit Credit 20Y3 Jan. 25 Investment in Helsi Co. Stock Cash Dec. 31-Dividends Cash Investment in Helsi Co. Stock Dec. 31-Income Investment in Helsi Co. Stock Income of Helsi Co.
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 56,000 shares of Helsi Co. common stock for $760,000. There are 160,000 shares of Helsi Co. stock outstanding. Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 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 Description Debit Credit 20Y3 Jan. 25 Investment in Helsi Co. Stock Cash Dec. 31-Dividends Cash Investment in Helsi Co. Stock Dec. 31-Income Investment in Helsi Co. Stock Income of Helsi Co.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Entries for equity investment of between 20%-50% ownership
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 56,000 shares of Helsi Co. common stock for $760,000. There are 160,000 shares of Helsi Co. stock outstanding.
Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 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
Description
Debit
Credit
20Y3
Jan. 25
Investment in Helsi Co. Stock
Cash
Dec. 31-Dividends
Cash
Investment in Helsi Co. Stock
Dec. 31-Income
Investment in Helsi Co. Stock
Income of Helsi Co.
II II II](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c89cc18-04af-4526-9496-6a509716cba2%2Fb890358c-2d9a-41e0-866c-dcab86f24581%2Fnzk60np_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Entries for equity investment of between 20%-50% ownership
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 56,000 shares of Helsi Co. common stock for $760,000. There are 160,000 shares of Helsi Co. stock outstanding.
Dec. 31 Received $23,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $95,000 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
Description
Debit
Credit
20Y3
Jan. 25
Investment in Helsi Co. Stock
Cash
Dec. 31-Dividends
Cash
Investment in Helsi Co. Stock
Dec. 31-Income
Investment in Helsi Co. Stock
Income of Helsi Co.
II II II
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