Question
Balance Sheet Presentation of Available-for-Sale Investments During Year 1,it's first year of operations,Galileo Company purchased two available -for -sale investments as follows :Security -Hawkins inc
Balance Sheet Presentation of Available-for-Sale Investments During Year 1,it's first year of operations,Galileo Company purchased two available -for -sale investments as follows :Security -Hawkins inc Shares Purchased-720 Cost-$30,672 Security-Pavlov Co, Shares Purchased-$1950,Cost-$43,290 Assume that as of December 31,Year 1,the Hawking Inc,stock had a market value for $51 per share and the Pavlov Co. stock had a market value of $40 per share. Galileo Company had net income of $237,400, and paid no dividends for the year ending December 31,Year 1. All of the Available-for-Sale investments are classified as current assests. A.Prepare the Current Assests 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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