ACCT 102 - Please Do Subparts A1, A2, and B Please and Thank You! At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies.CurrentMarketCost$220,000L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52)The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39)Value$260,000156,000$4416,000168,000$388,000In 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 Charter's financial statements at December 31, year1.a-2. Calculate the amount of unrealized gain or loss reported in the stockholders" equity section of Charter's financial statements atDecember 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 Securitiescontrol account.cesc-2 Prior to making a mark-to-market adjustment at the end of year 2, determine the Unrealized Holding Gain (or Loss) on Investmentsaccount.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 fiınancial 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 2g. Illustrate the presentation of the net realized gains (or losses) in the year 2 income statement. Assume a multiple-step incomestatement and show the caption identifying the section in which this amount would appear.Complete this question by entering your answers in the tabs below.Req A1Req A2Req BReq C1Req C2Req DReq EReq F1Req F2Req G< Prev3 of 3Nextaw Req A1Req A2Req BReq C1Req C2Req DReq EReq F1Reg F2Req GPrepare journal entries to record the transactions on April 10 and August 7. (If no entry is required for a transaction/event, select "NoJournal entry required" in the first account field.)View transaction listJournal entry worksheet<>Record the sale of shares of L Brands, Inc.Note: Enter debits before credits.DateGeneral JournalDebitCreditApr. 10View general journalClear entryRecord entry2.

Unrealized gain = Market price - Purchase price Cash amount received on sale = Number of shares *…

At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. Current Market Value $ 260,000 156,000 $ 416,000 L Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52) The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39) Cost $ 220,000 168,000 $ 388,000 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 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 year 2, 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.