Business, 12.03.2022 17:50 carcon2019

At December 31, year 1, Charter Holding Co. owned the following investments in capital stock of publicly traded companies (classified as available-for-sale securities). Cost Current Market
Value
L Brands, Inc. (5,000 shares: cost, $44 per share; 220,000 260,000
market value, $52)
The Gap, Inc. (4,000 shares: cost, $42 per share; ) 168,000 156,000
market value, $39
$ 388,000 416,000
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.
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 balance sheet at December 31, year 1.
a-2. Calculate the amount of unrealized gain or loss reported in the stockholders' equity section of Charter’s balance sheet 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. (Assume that no unrealized gains or losses have been recognized since last year.)
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. (Assume that no unrealized gains or losses have been recognized since last year.)
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 balance sheet at December 31, year 2.
f-2. Calculate the amount of unrealized holding gain (or loss) in the balance sheet 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.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 07:50

Connors academy reported inventory in the 2017 year-end balance sheet, using the fifo method, as $154,000. in 2018, the company decided to change its inventory method to lifo. if the company had used the lifo method in 2017, the company estimates that ending inventory would have been in the range $130,000-$135,000. what adjustment would connors make for this change in inventory method?

Answers: 1

Answer

Business, 22.06.2019 11:40

If kroger had whole foods’ number of days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? round interim calculations to one decimal place and your final answer to the nearest million.

Answers: 2

Answer

Business, 22.06.2019 12:00

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?

Answers: 1

Answer

Business, 22.06.2019 14:30

Turtle corporation produces and sells a single product. data concerning that product appear below: per unit percent of sales selling price $ 150 100 % variable expenses 75 50 % contribution margin $ 75 50 % the company is currently selling 5,600 units per month. fixed expenses are $194,000 per month. the marketing manager believes that a $5,300 increase in the monthly advertising budget would result in a 190 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

Answers: 1

Answer

You know the right answer?

At December 31, year 1, Charter Holding Co. owned the following investments in capital stock of publ...

Questions