Question
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.*
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