culate the amount of unrealized gain or loss reported in the stockholders' equity section of Charter's financial statementsat 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 MarketableSecurities 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) onInvestments 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 incomestatement and show the caption identifying the section in which this amount would appear.2WComplete this question by entering your answers in the tabs below.Req A1F3#G3EReq A2F4$Req B8RF5Q%5oReq C1< PrevF6TA63Req C2F7Y3 of 38&7RADFBwwwUPE*Req E8NextFOprt scF101(9Req F1homeOReq F2endPReq G+3=3:54 PM9/17/2022nber ducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253AseciQuestion 3 - Ch 7 h/w - mkt sec - Connectcompanies.SavedL Brands, Inc. (5,000 shares: cost, $44 per share; market value, $52)The Gap, Inc. (4,000 shares: cost, $42 per share; market value, $39)52Fnewcon...Cost$ 220,000168,000$ 388,000HelpCurrentMarketValue$ 260,000156,000$ 416,000SeIn 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 commiss$100.Aug. 7 Sold 2,000 shares of its investment in The Gap, Inc., at a price of $37 per share, less a brokerage commissio$150.At December 31, year 2, the market values of these stocks were: L Brands, Inc., $67 per share; and The Gap, Inc., $37 peRequired:a-1. Calculate the amount of marketable securities reported in the asset section of Charter's financial statements at Decemyear 1.a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of Charter's financial statemat 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

making a mark-to-market control account. and at the end of year. adjustment making a mark-to-market adjustment at the end of year 2 ts account. = a schedule showing the cost and the market values of sec e the fair value adjusting entry required at December 31, yea ate the amount of marketable securities in the financial stat- alate the amount of unrealized holding gain (or loss) in the fir te the presentation of the net realized gains (or losses) in the nt and show the caption identifying the section in which this a

making a mark-to-market control account. and at the end of year. adjustment making a mark-to-market adjustment at the end of year 2 ts account. = a schedule showing the cost and the market values of sec e the fair value adjusting entry required at December 31, yea ate the amount of marketable securities in the financial stat- alate the amount of unrealized holding gain (or loss) in the fir te the presentation of the net realized gains (or losses) in the nt and show the caption identifying the section in which this a

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 17-2A (Algo) Ratios, common-size statements, and trend percer [The following information applies to the questions displayed below.] Selected comparative financial statements of Korbin Company follow. KORBIN COMPANY Comparative Income Statements For Years Ended December 31 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income Assets Current assets Long-term investments Plant assets, net Total assets Liabilities and Equity Current liabilities Common stock Other paid-in capital Retained earnings Total liabilities and equity 2021 $546,242 328,838 217,404 77,566 49,162 126,728 90,676 16,866 $ 73,810 Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total expenses Income before taxes Income tax expense Net income KORBIN COMPANY Comparative Balance Sheets December 31 2020 $ 418,466 263,634 2021 % 154,832 57,748 36,825 94,573 60, 259 12,353 $ 47,906 % $61,141 0 113,547…
Seven metrics The following data were taken from the financial statements of Woodwork Enterprises Inc. for the current fiscal year. Assuming that there are no intangible assets. Property, plant, and equipment (net) Liabilities: Current liabilities Mortgage note payable, 10%, ten-year note issued two years ago Total liabilities Stockholders' equity: Preferred $2 stock, $100 par (no change during year) Common stock, $10 par (no change during year) Retained earnings: Balance, beginning of year Net income Preferred dividends Common dividends Balance, end of year Total stockholders' equity Sales Check My Work $1,440,000 566,000 $27,000 179,000 $225,000 1,125,000 $2,006,000 206,000 $1,800,000 $1,350,000 $1,350,000 1,350,000 1,800,000 $4,500,000 $13,614,650 Previous
What is the adjusting journal entry on December 31, 2019? Debit Unrealized Holding Gain/Loss (P&L), P200,000; Credit Retained Earnings, P200,000 Debit Financial Asset FVPL, P500,000; Credit Retained Earnings, P500,000 Debit Retained Earnings, P100,000; Credit Financial Asset FVPL, P100,000 Debit Retained Earnings, P300,000; Credit Unrealized Gain (P&L), P300,000 Debit Retained Earnings, P200,000; Credit Unrealized Holding Gain/Loss (P&L), P200,000 None of the choices
Pasta Corporation acquired 75% of Sauce Company on January 1, 2020 for $566,250 cash. The fair value of the other 25% ownership interest is estimated to be $188,750. ADDITIONAL INFORMATION: On the date of acquisition: * The Book Value of Sauce Company's net identifiable assets was $652,000. * Sauce's Company's Plant Assets were undervalued by $75,000 (remaining life was estimated to be 5 years). * Sauce's Company's Inventories were overvalued by $9,000 (all sold by year end). * New Goodwill was determined to be $37,000. At year-end, it was determined that the New Goodwill was impaired by $5,800. * For 2020, Sauce reported net income of $146,500 and paid dividends of $26,000. Assume that Pasta Company uses the fully adjusted equity method to account for its Investment in Sauce.
Need assistance with (a) (4) through (7)
Arantxa Corporation made the following purchases of investments during 2023, the first year in which Arantxa invested in equity securities: 1. 2. 3. On January 15, it purchased 9,000 shares of Nirmala Corp.'s common shares at $33.50 per share plus commission of $1,980. On April 1, it purchased 5,000 shares of Oxana Corp's common shares at $52 per share plus commission of $3,370. On September 10, it purchased 7,000 shares of WTA Corp's preferred shares at $26.50 per share plus commission of $2,910. On May 20, 2023, Arantxa sold 3,000 of the Nirmala common shares at a market price of $35 per share less brokerage commissions of $2,850. The year-end fair values per share were as follows: Nirmala $30, Oxana $55, and WTA $28. The chief accountant of Arantxa tells you that Arantxa holds these investments with the intention of selling them to earn short-term profits from appreciation in their prices and accounts for them using the FV-NI model. Arantxa follows IFRS.