During the first year of operations, Makala Company purchased two available-for-
ID: 2491833 • Letter: D
Question
During the first year of operations, Makala Company purchased two available-for-sale investments as follows:
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.
Amount Descriptions
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
Security Shares Purchased Cost Oceanna Company 700 $29,000 Rockledge, Inc. 1,900 41,000Explanation / Answer
Ans;
Makala Company Balance sheet as on Dec 31. Current Asset Section Details Amt $ Available for sale security-Oceanna Co 34,300.00 Available for sale security-Rockledge Inc. 38,000.00 Total Available for sale security 72,300.00 Stockholders Equity section(partial) Details Amt $ No par common shares , 10000 nos 150,000.00 Retained Earning 105,000.00 Other Comprehensive Income Unrealized Gain from Available for sale security 5,300.00 Unrealized loss from Available for sale security (3,000.00) Accumulated Other Comprehensive Income 2,300.00 Total Stockholder's Equity 257,300.00Related Questions
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