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At December $31,$ year $1,$ Charter Holding Co$.$ owned the following marketable securities in capital stock of publicly traded companies.

In year $2,$ Charter engaged in the following two transactions.

Apr$\mathrm{.}10$ 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 $$15.$

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 holding gain $($or loss$)$ in the 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.

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