Please answer the accounting question At December 31, 2014, Charter Holding Co. owned the following investments in the capital stock ofpublicly traded companies classified as available-for-sale securities:CostCurrentValueMarketLimited Brands, Inc. (5,000 shares: cost $40 per share; market value$44)$200,000 $220,000The Gap, Inc. (4,000 shares: cost, $40 per share; market value, $36) 160,000 144,000In 2015, Charter engaged in the following two transactions:$360,000 $364,000Apr. 10 Sold 1,000 shares of its investment in Limited Brands, Inc., at a price of $45 per share, less abrokerage commission of $100.Aug.7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $35 per share, less a brokeragecommission of $150.At December 31, 2015, the market values of these stocks were: Limited Brands, Inc., $42 per share;and The Gap, Inc., $37 per share.Instructionsa-1. Calculate the number of marketable securities in the balance sheet at December 31, 2014.a-2. Calculate the amount of unrealized holding gain (or loss) in the balance sheet at December 31,2014.

Step 1: Define Marketable SecuritiesThe sale and redeem of securities and debts within the counting…

Answered: At December 31, 2014, Charter Holding…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter15: Investments And Fair Value Accounting

Section: Chapter Questions

Problem 28E

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prepare the journal entries to record the transactions on April 10 and Aug 7.
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