60.1K

Verified Solution

Link Copied!

Instructions Southeast Bank invests in trading securities and prepares quarterly financial statements. At the beginning of the fourth quarter of 2018, the bank held as trading securities 280 shares of Eglan Company common stock that originally cost $7,560. At that time, these securities had a fair value of S7,280. During the fourth quarter the bank engaged in the following trading securities transactions: General Journal Prepare journat entries to record the 2018 transactions for the fourth quarter Additional Instructions PAGE 1 GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEEIT CREDIT Show what the bank reports on its fourth quarter 2018 income statement for these trading securities Aditional Instructions Southeast Bank Income Statement (partial) For the Year Ended December 31, 2018 Show how the bank reports these trading securities on its balance sheet at the end of the fourth quarter of 2018. Addlitional Instructions Southeast Bank Balance Sheet (partial) December 31, 2018 Current assets: FASB requires unrealized gains and losses for trading securities to be reported as a component of income because All of the choices are correct The iquidity needs of the company mean the securities will be sold for cash in the near term. The nearness to cash of trading securities The securities are actively managed making the inclusion of gains and losses relevant

Answer & Explanation Solved by verified expert

See Answer