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