The investment manager of 4th national bank invests some of the bank?s financial resources in trading securities. During the last quarter of 2018, the following transactions occurred in regard to these trading securities:

On December 31, 2018, the market values of the shares were as follows: Morgan, $87 per share; Parker, $61 per share and tat hem $37.25 per share. The bank held no trading securities at the beginning of the last quarter of 2018.

Required:

1. Prepare journal entries to record the preceding information.

2. Show what the bank reports on its fourth quarter 2018 income statement for these trading securities.

3. Show how the bank reports these trading securities on its December 31,2018 balance sheet.

Transcribed Image Text:

ading Securities Instructions Chart of Accounts General Journal Income Statement Balanc structions The investment manager of 4th National Bank invests some of the bank's financial resources in trading securitie 4 Nov. 5 19 29 Dec. 15 17 Purchased 200 shares of Morgan Company common stock at $86 per share. Purchased 300 shares of Parker Company preferred stock at $63 per share. Sold 100 shares of Morgan Company common stock at $89 per share. Purchased 400 shares of Tathem Company common stock at $37 per share. Sold 100 shares of Parker Company preferred stock at $62 per share. On December 31, 2018, the market values of the shares were as follows: Morgan, $87 per share; Parker, S61 Required: 1. Prepare journal entries to record the preceding information. 2. Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. ants General Journal ares of Morgan Company common stock at $86 per share. ares of Parker Company preferred stock at $63 per share. Morgan Company common stock at $89 per share. ares of Tathem Company common stock at $37 per share General Journal Prepare journal entries to record the 2018 transactions. Additional Instructions rd al 1 2 B 9 10 11 12 13 24 Income Statement Balance Sheet DATE GENERAL JOURNAL ACCOUNT TITLE POST REP. DEBIT PAGE 1 CREDIT eBook Income Statement Trading Securities Instructions Chart of Accounts General Journal Income Statement Balance Sheet 1 Calculator Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. Additional Instructions 2 Print Ilem 3 4th National Bank Partial Income Statement For the Year Ended December 31, 2018 Trading Securities Instructions Chart of Accounts General Journal Income Statement Balance Sheet Income Statement Balance Sheet SH Show how the bank reports these trading securities on its December 31, 2018, balance sheet. Additional Instructions 1 2 4th National Bank Partial Balance Sheet December 31, 2018 Current assets: ading Securities Instructions Chart of Accounts General Journal Income Statement Balanc structions The investment manager of 4th National Bank invests some of the bank's financial resources in trading securitie 4 Nov. 5 19 29 Dec. 15 17 Purchased 200 shares of Morgan Company common stock at $86 per share. Purchased 300 shares of Parker Company preferred stock at $63 per share. Sold 100 shares of Morgan Company common stock at $89 per share. Purchased 400 shares of Tathem Company common stock at $37 per share. Sold 100 shares of Parker Company preferred stock at $62 per share. On December 31, 2018, the market values of the shares were as follows: Morgan, $87 per share; Parker, S61 Required: 1. Prepare journal entries to record the preceding information. 2. Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. ants General Journal ares of Morgan Company common stock at $86 per share. ares of Parker Company preferred stock at $63 per share. Morgan Company common stock at $89 per share. ares of Tathem Company common stock at $37 per share General Journal Prepare journal entries to record the 2018 transactions. Additional Instructions rd al 1 2 B 9 10 11 12 13 24 Income Statement Balance Sheet DATE GENERAL JOURNAL ACCOUNT TITLE POST REP. DEBIT PAGE 1 CREDIT eBook Income Statement Trading Securities Instructions Chart of Accounts General Journal Income Statement Balance Sheet 1 Calculator Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. Additional Instructions 2 Print Ilem 3 4th National Bank Partial Income Statement For the Year Ended December 31, 2018 Trading Securities Instructions Chart of Accounts General Journal Income Statement Balance Sheet Income Statement Balance Sheet SH Show how the bank reports these trading securities on its December 31, 2018, balance sheet. Additional Instructions 1 2 4th National Bank Partial Balance Sheet December 31, 2018 Current assets:

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