Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 860 $43,602 Pavlov Co. 2,330 61,512 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. available for sale investments at cost/available for sale investments at fair value/common stock/retained earning/unrealized gain (loss) on available for sale investments/less retained earning/less unrealized gain (loss) on available for sale /plus retained earnings/plus unrealized gain (loss) on available/plus valuation allowance for available for sale/less unrealized gain (loss)/less valuation allawance for available/retained earning/common stock/available for sale investments, at cost/available for sale investments, at fair value/ a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: $fill in the blank 6f30cb02405dfbc_2 fill in the blank 6f30cb02405dfbc_4 $fill in the blank 6f30cb02405dfbc_5 b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments. Galileo Company Balance Sheet (selected Stockholders' Equity items) December 31, Year 1 Stockholders' Equity $fill in the blank e26b35fe4ffff84_2 fill in the blank e26b35fe4ffff84_4
During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows:
| Security | Shares Purchased | Cost | ||
| Hawking Inc. | 860 | $43,602 | ||
| Pavlov Co. | 2,330 | 61,512 |
Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $60 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $337,400 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets.
available for sale investments at cost/available for sale investments at fair value/common stock/retained earning/unrealized gain (loss) on available for sale investments/less retained earning/less unrealized gain (loss) on available for sale /plus
a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.
| Galileo Company | ||
| Balance Sheet (selected items) | ||
| December 31, Year 1 | ||
| Assets | ||
| Current Assets: | ||
| $fill in the blank 6f30cb02405dfbc_2 | ||
| fill in the blank 6f30cb02405dfbc_4 | $fill in the blank 6f30cb02405dfbc_5 |
b. Prepare the
| Galileo Company | |
| Balance Sheet (selected Stockholders' Equity items) | |
| December 31, Year 1 | |
| Stockholders' Equity | |
| $fill in the blank e26b35fe4ffff84_2 | |
| fill in the blank e26b35fe4ffff84_4 |
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