Saved 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) Help Current Market Cost $ 220,000 168,000 Value $ 260,000 156,000 $ 388,000 $ 416,000 Save & Exit 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 shar-

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 incon
statement and show the caption identifying the section in which this amount would appear.
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Transcribed Image Text: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 incon 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. Req A1 Reg A2 Req B Req C1 < Prev ETHER Reg C2 3 of 3 Req D Req E Next THER Req F1 Req F2 Req G
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Saved
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)
wcon...
Cost
$ 220,000
168,000
$ 388,000
Help Save & Exit
Current
Market
Value
$ 260,000
156,000
$ 416,000
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.
☆
S
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.
Transcribed Image Text:sec i Saved 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) wcon... Cost $ 220,000 168,000 $ 388,000 Help Save & Exit Current Market Value $ 260,000 156,000 $ 416,000 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. ☆ S 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.
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