Saved 6 A December 31, year 1, Charter Holding Co owned the following marketable securities in capital stock of publicly traded companies Current Market Value $ 260,000 156,020 $ 416,000 Cost $ 220,000 168,000 5 388,000 L Brands, Inc (5,000 shares cost, 544 per share market value, $52) The Gap, Inc (4,000 shares cost, $42 per share market value, $39) 1 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 5old 2,800 shares of its investment in The Gap, Inc , at a price of 537 per share, less a brokerage commission of $15e At December 31 year 2, the market values of these stocks were L Brands, Inc , 567 per share, and The Gap, Inc $37 per share Required 1 Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year 1 2 Calculate the amount of unrenized 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 2 1 Prior to making a mark to market adjustment at the end of year 2 determine the unadjusted balance in the Marketable Securities c 2 Prior to making a mark to market adjustment at the end of year 2 determine the Unrealized Holding Gain (or Lons) 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 M Calculate the amount of marketable securities in the financial statements at December 31, year 2 1 2 Calculate the amount of unrealized holding gain (or loss) in the financial statements at December 31, year 2 9 Illustrate the presentation of the net realized gains for 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 Complete this question by entering your answers in the tabs below

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Saved   6 A  December 31, year 1, Charter Holding Co  owned the following marketable securities in capital stock of publicly traded companies Current Market Value $ 260,000 156,020 $ 416,000 Cost $ 220,000 168,000 5 388,000 L Brands, Inc  (5,000 shares  cost, 544 per share  market value, $52) The Gap, Inc  (4,000 shares  cost, $42 per share  market value, $39) 1 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 5old 2,800 shares of its investment in The Gap, Inc , at a price of 537 per share, less a brokerage commission of $15e  At December 31  year 2, the market values of these stocks were L Brands, Inc , 567 per share, and The Gap, Inc  $37 per share Required  1  Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at December 31, year 1 2  Calculate the amount of unrenized 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 2 1  Prior to making a mark to market adjustment at the end of year 2  determine the unadjusted balance in the Marketable Securities c 2 Prior to making a mark to market adjustment at the end of year 2  determine the Unrealized Holding Gain (or Lons) 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 M  Calculate the amount of marketable securities in the financial statements at December 31, year 2 1 2  Calculate the amount of unrealized holding gain (or loss) in the financial statements at December 31, year 2 9  Illustrate the presentation of the net realized gains for 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 Complete this question by entering your answers in the tabs below

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Financial And Managerial Accounting The Basis For Business Decisions

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Financial And Managerial Accounting The Basis For Business Decisions

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