C1 and C2

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 $109, 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 $150. 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 1. a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of Charter's 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 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. & Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B Req C1 Reg C2 Req D Req E Req F1 Reg F2 Reg G Prior to making a mark-to-market adjustment at the end. Reg C2 Securities control account. determine the unadjusted balance in the Marketable Marketable securities s 416,000 & ReqB Req c2 > 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 $109, 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 $150. 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 1. a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of Charter's 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 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. & Answer is not complete. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B Req C1 Reg C2 Req D Req E Req F1 Reg F2 Reg G Prior to making a mark-to-market adjustment at the end. Reg C2 Securities control account. determine the unadjusted balance in the Marketable Marketable securities s 416,000 & ReqB Req c2 >