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, 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, Makala had a net income of $105,000. No dividends were paid.

Required:

(a)

Prepare the current assets section of the balance sheet presentation 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 the Chart of Accounts and list of 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.

Amount Descriptions

Amount Descriptions
Available-for-sale investments, at cost
Common stock
Retained earnings
Total stockholders equity
Unrealized gain (loss) on available-for-sale investments
Valuation allowance for available-for-sale investments

Balance Sheets

Prepare the current assets section of the balance sheet presentation for the available-for sale securities as of December 31. Refer to the information given and the Chart of Accounts and list of Amount Descriptions provided for the exact wording of the answer choices for text entries. Plus or Less will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Makala Company

Balance Sheet (selected items)

December 31

1	Assets
2	Current assets:
3
4

Prepare the stockholders equity section of the balance sheet as of December 31. Refer to the information given and the Chart of Accounts and list of 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

1	Stockholders Equity
2
3
4
5