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NEED HELP WITH E AND F2 ONLY. ( E, F2) THESE HAVE NOT BEEN ANSWERED ANYWHERE ON CHEGG// IF THEY ARE, THEY ARE INCORRECT At

NEED HELP WITH E AND F2 ONLY. ( E, F2)

THESE HAVE NOT BEEN ANSWERED ANYWHERE ON CHEGG// IF THEY ARE, THEY ARE INCORRECT

At December 31, year 1, Charter Holding Co. owned the following investments in capital stock of publicly traded companies (classified as available-for-sale securities).

L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52)$220,000 $260,000

The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39) 168,000 156,000

$388,000 $416,000

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 $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 Charters balance sheet at December 31, year 1.

a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of Charters balance sheet 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. (Assume that no unrealized gains or losses have been recognized since last year.)

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. (Assume that no unrealized gains or losses have been recognized since last year.)

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 balance sheet at December 31, year 2.

f-2. Calculate the amount of unrealized holding gain (or loss) in the balance sheet 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.

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