During 20Y8, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security ___________

Question:

During 20Y8, its first year of operations, Galileo Company purchased two available-for-sale investments as follows:
Security ___________ Shares Purchased _________ Cost
Hawking Inc. ................ 900 ................... $44,000
Pavlov Co. .................. 1,780 .................... 38,000
Assume that as of December 31, 20Y8, 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, 20Y8.
All of the available-for-sale investments are classified as current assets.
a. Prepare the current assets section of the presentation for the available for- sale investments.
b. Prepare the stockholders' equity section of the to reflect the earnings and unrealized gain (loss) for the available-for-sale investments?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...