The investments of Charter Inc. include 10,000 shares of Wallace Inc. common stock purchased on January 10,

Question:

The investments of Charter Inc. include 10,000 shares of Wallace Inc. purchased on January 10, 2010, for $30 per share. These shares were classified as available-for sale securities. As of the December 31, 2010, date, assume that the share price declined to $23 per share. As of the December 31, 2011, date, assume that the share price rose to $27 per share. The investment was held through December 31, 2011.
(a) Journalize the entries to record the adjustment of the Wallace Inc. investment to fair value on December 31, 2010, and December 31, 2011.
(b) What is the balance of Unrealized Gain (Loss) on Available-for-Sale Investments for December 31, 2010, and December 31, 2011?
(c) Where is Unrealized Gain (Loss) on Available-for-Sale Investments disclosed on the financial statements?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...