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In: AccountingRios Financial Co. is a regional insurance company that beganoperations on January 1, Year 1....Rios Financial Co. is a regional insurance company that beganoperations on January 1, Year 1. The following transactions relateto trading securities acquired by Rios Financial Co., which has afiscal year ending on December 31:Record these transactions on page 10:Year 1Feb.1.Purchased 4,700 shares of Caldwell Inc. as a trading securityat $36 per share plus a brokerage commission of $470.May1.Purchased 1,800 shares of Holland Inc. as a trading security at$48 plus a brokerage commission of $198.July1.Sold 2,440 shares of Caldwell Inc. for $34 per share less a$105 brokerage commission.31.Received an annual dividend of $0.35 per share on Caldwell Inc.stock.Dec.31.The portfolio of trading securities was adjusted to fair valuesof $34 and $47 per share for Caldwell Inc. and Holland Inc.,respectively.Record these transactions on page 11:Year 2Apr.1.Purchased 3,500 shares of Fuller Inc. as a trading security at$31 per share plus a $175 brokerage commission.July31.Received an annual dividend of $0.40 per share on Caldwell Inc.stock.Oct.14.Sold 700 shares of Fuller Inc. for $33 per share less a $55brokerage commission.Dec.31The portfolio of trading securities had a cost of $255,124 anda fair value of $331,594, requiring a debit balance in ValuationAllowance for Trading Investments of $76,470 ($331,594 - $255,124).Thus, the credit balance from December 31, Year 1, is to beadjusted to the new balance.Required:1.Journalize the entries to record these transactions. Round allfinal amounts to the nearest whole dollar.*2.Prepare the investment-related current asset balance sheetpresentation for Rios Financial Co. on December 31, Year 2.*3.How are unrealized gains or losses on trading investmentspresented in the financial statements of Rios Financial Co.?*Refer to the information given and the Chart of Accounts andAmount Descriptions provided for the exact wording of the answerchoices for text entries. “Less” or “Plus” will automaticallyappear if it is required. For those boxes in which you must entersubtracted or negative numbers use a minus sign.3. How are unrealized gains or losses on trading investmentspresented in the financial statements of Rios Financial Co.?Unrealized gains or losses on trading investments are reportedon theFor Year 1, Rios Financial Co. would have reported anFor Year 2, Rios Financial Co. would have reported anIf unrealized gains and losses were significant for RiosFinancial, then they would be