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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"

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"

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 26P
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ACCT 102 

Do Subparts C1, C2, and D(Thank You!)

GIVEN:

A1 = $416,000

A2 = $28,000

B = 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 Decemb er 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 whích this amount would appear. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C1 Req C2 Req D Req E Req F1 Reg F2 Req G Prepare journal entries to record the transactions on April 10 and August 7. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit Apг. 10 Cash 57,900 1 44,000 Marketable securities 13,900 Gain on sale of investments 73,850 2. Aug 07 Cash 10,150 Loss on sale of investments 84,000 Marketable securities < Req A2 Req C1 >
Transcribed Image Text:tatements at Decemb er 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 whích this amount would appear. Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C1 Req C2 Req D Req E Req F1 Reg F2 Req G Prepare journal entries to record the transactions on April 10 and August 7. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit Apг. 10 Cash 57,900 1 44,000 Marketable securities 13,900 Gain on sale of investments 73,850 2. Aug 07 Cash 10,150 Loss on sale of investments 84,000 Marketable securities < Req A2 Req C1 >
At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. Current Market Cost Value 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) $ 220,000 168,000 $388,000 $ 260,009 156,000 $4416,000 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 $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, 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. Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B Req C1 Req C2 Req D Req E Req F1 Req F2 Req G
Transcribed Image Text:At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies. Current Market Cost Value 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) $ 220,000 168,000 $388,000 $ 260,009 156,000 $4416,000 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 $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, 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. Complete this question by entering your answers in the tabs below. Reg A1 Req A2 Req B Req C1 Req C2 Req D Req E Req F1 Req F2 Req G
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