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please help me answering everything i dont have more questions on chegg Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of

please help me answering everything i dont have more questions on chegg image text in transcribed
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Balance Sheet Presentation of Available-for-Sale Investments During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased cost Hawking Inc. 610 $21,899 Pavlov Co. 1,650 30,855 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $43 per share and the Pavlov Co. stock had a market value of $34 per share. Galileo Company had net income of $169,300 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments. Galileo Company Balance Sheet (selected items) December 31, Year 1 Assets Current Assets b. Prepare the Stockholders' Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-sale investments Galileo Company Balance Sheet (selected Stockholders' Equity Items) December 31, Yeart Stockholders' Equity Fair Value Journal Entries, Available-for-Sale Investments The investments of Steelers Inc. include a single investment: 7,300 shares of Bengals Inc, common stock purchased on September 12, Year 1, for $11 per share including brokerage commission. These shares were classified as available-for-sale securities. As of the December 31, Year 1, balance sheet date, the share price declined to $9 per share. a. Journalize the entries to acquire the investment on September 12 and record the adjustment to fair value on December 31, Year 1. Year 1 Sept. 12 Year 1 Dec. 31 b. How is the unrealized gain or loss for available-for-sale investments disclosed on the financial statements? Unrealized Gain (Loss) on Available-for-Sale Investments is reported in the of the

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