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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

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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. 950 $53,485 Pavlov Co. 2,570 75,301 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $67 per share and the Pavlov Co stock had a market value of $53 per share. Galileo Company had net income of $413,400 and paid no dividends for the year ending December 31, Year 1. All of the available for sale investments are dassified 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 Current Ass b. Prepare the stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (less) for the available for sale investments. Galileo Company Balance Sheet (selected stockholders' Equity items) December 31, Year 1 Stockholders' Equity Current Assets: the balance sheet to reflect the earnings Available-for-Sale Investments, at Cost Available-for-Sale Investments, at Fair Value Common Stock Retained Earnings Unrealized Gain (Loss) on Available-for-Sale Investments fems) Less Retained Earnings alance sheet to reflect Less Unrealized Gain (Loss) on Available-for-Sale Investments Less Valuation Allowance for Available-for-Sale Investments Plus Retained Earnings Plus Unrealized Gain (Loss) on Available-for-Sale Investments Plus Valuation Allowance for Available-for-Sale Investments Assets Current Assets: Available-for-Sale Investments, at Cost Available-for-Sale Investments, at Fair Value Common Stock Retained Earnings Valuation Allowance for Available for Sale Investments the balance sheet to reflect the earnings and items) Available-for-Sale Investments, at Cost The balance sheet to reflect th Available-for-Sale Investments, at Fair Value tems) Common Stock Unrealized Gain (Loss) on Available-for-Sale Investments Valuation Allowance for Available for Sale Investments

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