Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2012, its first year of operations, Makala Company purchased two available-for-sale investments as follows: Assume that as of December 31, 2012, the Oceanna Company

During 2012, its first year of operations, Makala Company purchased two available-for-sale investments as follows:

Assume that as of December 31, 2012, the Oceanna Company stock had a market value of $49 per share and Rockledge, Inc. stock had a market value of $20 per share.

Makala had 10,000 shares of no par stock outstanding that was issued for $150,000. For the year ending December 31, 2012, Makala had a net income of $105,000. No dividends were paid.

Required:

Hide

1. Prepare the Current Assets section of the balance sheet presentation for the available-for sale securities as of December 31, 2012.

Makala Company
Balance Sheet (selected items)
December 31, 2012
Current assets:
$
$

Hide

2. Prepare the Stockholders' Equity section of the balance sheet as of December 31, 2012.

Makala Company
Balance Sheet (selected items)
December 31, 2012
Stockholders' Equity:
$
Total stockholders' equity
$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

2nd edition

134730372, 134730370, 978-0134730370

More Books

Students also viewed these Accounting questions

Question

Do organizations mix the computer server options and if so why

Answered: 1 week ago