Question: During 2014 its first year of operations Galileo Company purchased

During 2014, its first year of operations, Galileo Company purchased two available for-sale investments as follows:

Assume that as of December 31, 2014, the Hawking Inc. stock had a market value of $50 per share, and the Pavlov Co. stock had a market value of $24 per share. Galileo Company had net income of $300,000, and paid no dividends for the year ended
December 31, 2014. 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.
b. Prepare the Stockholders’ Equity section of the balance sheet to reflect the earnings and unrealized gain (loss) for the available-for-saleinvestments.

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  • CreatedFebruary 28, 2014
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