Chapter 7 HW M Destion Chapter Sarea Help Save & E Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion 3 Return to question At December 31, year 1, Charter Holding Co. owned the following marketable securities in capital stock of publicly traded companies Current Market Cost Value Brands, Inc. (5,000 shares: cost, 544 per share: market value, $52) $ 220,000 $ 260,000 The Gap, Inc. (4,000 shares: cost, 542 per share: market value, $39) 168,000 156,988 $385.000 3.416, ea 10 points 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 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 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 for 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.