During the First Year of Operations, Makala Company Purchased Two

question 77

Essay

During the first year of operations, Makala Company purchased two trading investments as follows:
​ $\begin{array}{|l|c|r|}\hline \text { Security } & \text { Shares Purchased } &{\text { Cost }} \\\hline \text { Oceanna Company } & 700 & \$ 29,000 \\\hline \text { Rockledge, Inc. } & 1,900 & 41,000 \\\hline\end{array}$ ​
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 net income of $105,000. No dividends were paid.
​ (a) Frepare the current assets section of the balance sheet presentation for the trading securities as of December 31.
(b) Explain how the gain or loss would be reported on the income statement. ​

Recognize strategies for demonstrating integrity within virtual teams.

Describe the concept of the flaming effect and its occurrence in online communication.

Understand the role of trust and respect in enhancing online communication and team performance.

Analyze the importance of maintaining confidentiality and appropriate behavior in a virtual teamwork setting.

---

Definitions:

VISA

A global payment technology company that facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards and debit cards.

Multiple-Step Income Statement

A form of income statement that contains several sections, subsections, and subtotals.

Income from Operations

The earnings generated from the day-to-day activities of a business, excluding income and expenses from non-operational sources.

Net Income

The net income of a company, which is calculated by deducting all expenses and taxes from the total revenue.