First Bank decides to invest in trading securities. The bank purchased the following securities for the year 2015.

1)Prepare journal entries to record the preceding information.
2) What is the unrealized holding gain or loss and where is it reported on the 2014 financial statements?
3)Prepare the journal entry to record the unrealized holding gain or loss.
4)How would the bank report these securities on its balance sheet for the year ended 2015?

Question

First Bank decides to invest in trading securities. The bank purchased the following securities for the year 2015.

1)Prepare journal entries to record the preceding information.
2) What is the unrealized holding gain or loss and where is it reported on the 2014 financial statements? 
3)Prepare the journal entry to record the unrealized holding gain or loss.
4)How would the bank report these securities on its balance sheet for the year ended 2015?

Quizplus · Accepted Answer

The Answer of First Bank decides to invest in trading securities. The bank purchased the following securities for the year 2015.

1)Prepare journal entries to record the preceding information.
2) What is the unrealized holding gain or loss and where is it reported on the 2014 financial statements? 
3)Prepare the journal entry to record the unrealized holding gain or loss.
4)How would the bank report these securities on its balance sheet for the year ended 2015?

First Bank Decides to Invest in Trading Securities