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. 900 $44,000 Pavlov Co. 1,780 38,000 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $50 per share and the Pavlov Co. stock had market value of $24 per share. Galileo Company had net income of $300,000 and paid no dividends for the year ended 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. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets: Available-for-Sale Investments, at Cost Plus Valuation Allowance for Available-for-Sale Investments Feedback 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 Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments Feedback Check My Work Check My Work ( Previous Next ) Previous Next