Reporting Investments Available-for-Sale Securities During the current year, Galileo Company purchased available-for-sale investments for the first time. The following securities were purchased: Security Shares Purchased Cost Hawking Inc. 990 $48,700 Pavlov Co. 1,510 37,350 There were no other investments purchases and no sales of investments during the year. As of December 31, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock had a market value of $28 per share. These available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for Galileos available-for-sale investments. GALILEO COMPANY Balance Sheet (selected items) December 31 Assets Current assets: Available-for-sale investments (at cost) Available-for-sale investments (at fair value) Galileo Company has 5,000 shares of $10 par common stock and $250,000 paid-in capital in excess of par. As of December 31 of the previous year, the retained earnings balance was $442,500. For the current year, Galileo Company had net income of $193,100 and paid no dividends. b. Prepare the Stockholders Equity section of Galileo Companys balance sheet for December 31. GALILEO COMPANY Balance Sheet (selected Stockholders Equity items) December 31 Stockholders Equity Common Stock Paid-in capital in excess of par Retained Earnings Unrealized gain (loss) on available-for-sale investments Total