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At December 3 1 , year 1 , Charter Holding Co . owned the following marketable securities in capital stock of publicly traded companies. In

At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies.
In year 2, Charter engaged in the following two transactions.
Apr.10 Sold 1,000 shares of its investment in L Brands, Inc., at a price of $58 per share, less a brokerage
commission of $100.
Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $37 per share, less a brokerage commission
of $15.
At December 31, year 2, the market values of these stocks were: L Brands, Inc., $67 per share; and The Gap, Inc., $37 per share.
Required:
a-1. Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year
a-2. Calculate the amount of unrealized holding gain (or loss) in the financial statements at December 31, year 1.
b. Prepare journal entries to record the transactions on April 10 and August 7.
c-1. Prior to making a mark-to-market adjustment at the end of year 2, determine the unadjusted balance in the Marketable Securities
control account.
c-2 Prior to making a mark-to-market adjustment at the end of year 2, determine the Unrealized Holding Gain (or Loss) on Investments
account.
d. Prepare a schedule showing the cost and the market values of securities owned at the end of year 2.
e. Prepare the fair value adjusting entry required at December 31, year 2.
f-1. Calculate the amount of marketable securities in the financial statements at December 31, year 2.
f-2. Calculate the amount of unrealized holding gain (or loss) in the financial statements at December 31, year 2.
g. Illustrate the presentation of the net realized gains (or losses) in the year 2 income statement. Assume a multiple-step income
statement and show the caption identifying the section in which this amount would appear . please ANSWER C THROUGH G

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