ACCT 102 Do Subparts C1, C2, and D(Thank You!)GIVEN:A1 = $416,000A2 = $28,000B = Photo Provided C1 asks for "Marketable Securities"(Prior to Yr 2)C2 asks to determine "Unrealized Holding Gain (or loss) on Investments(Prior to Yr 2)D asks for a "schedule showing the cost and market value of securities owned at end of Yr 2" tatements 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 incomestatement and show the caption identifying the section in whích this amount would appear.Complete this question by entering your answers in the tabs below.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 listView journal entry worksheetNoDateGeneral JournalDebitCreditApг. 10Cash57,900144,000Marketable securities13,900Gain on sale of investments73,8502.Aug 07Cash10,150Loss on sale of investments84,000Marketable securities< Req A2Req C1 > At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies.CurrentMarketCostValueL Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52)The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39)$ 220,000168,000$388,000$ 260,009156,000$4416,000In 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 $190.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 accountc-2 Prior to making a mark-to-market adjustment at the end of year 2, determine the Unrealized Holding Gain (or Loss) on Investmentsaccountd. Prepare a schedule showing the cost and the market values of securities owned at the end of year 2e. 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 2F-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.Reg A1Req A2Req BReq C1Req C2Req DReq EReq F1Req F2Req G

Marketable Securities are commercial securities that may be bought and sold via or on a regulated…

Answered: C1 asks for "Marketable…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q