Question
15-23 Security Shares Purchased Cost Hawking Inc. 860 $43,946 Pavlov Co. 2,330 61,978 Galileo Company Balance Sheet (selected tems) December 31, Year 1 Assets Current
15-23
Security | Shares Purchased | Cost | ||
Hawking Inc. | 860 |
| $43,946 |
|
Pavlov Co. | 2,330 |
| 61,978 |
|
Galileo Company | ||
Balance Sheet (selected tems) | ||
December 31, Year 1 | ||
Assets | ||
Current Assets: | ||
| $ | |
| $ |
Galileo Company | |
Balance Sheet (selected Stockholders' Equity items) | |
December 31, Year 1 | |
Stockholders' Equity | |
| $ |
|
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:
Assume that as of December 31, Year 1, the Hawking Inc., stock had a market value of $61 per share and the Pavlov Co. stock had a market value of $48 per share. Galileo Company had net income of $340,000, and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.
b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments.
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