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During the first year of operations, Makala Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Oceanna Company 700 $29,000 Rockledge, Inc. 1,900

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

Security Shares Purchased Cost
Oceanna Company 700 $29,000
Rockledge, Inc. 1,900 41,000

Assume that as of December 31, Oceanna Companys stock had a market value of $49 per share and Rockledge, Inc.s 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, Makala had a net income of $105,000. No dividends were paid.

Required:
(a) Prepare the Current assets section of the balance sheet for the available-for sale securities as of December 31.*
(b) Prepare the Stockholders equity section of the balance sheet as of December 31.*

* Refer to the information given and list of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Plus or Less will automatically appear if it is required.

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Makala Company Balance Sheet (selected items) December 31 Assets 2Current assets: Prepare the Stockholders' equity section of the balance sheet as of December 31. Refer to the information given and list of Accounts and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign Makala Company Balance Sheet (selected items) December 31 Stockholders' Equity

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