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Entries for equity investment of between 20%50% ownership Glacier Products Inc. is a wholesaler of...

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Accounting

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 42,000 shares of Helsi Co. common stock for $690,000. There are 120,000 shares of Helsi Co. stock outstanding.
Dec. 31 Received $21,000 of cash dividends on Helsi Co. stock. Helsi Co. reported net income of $86,000 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 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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