Chart of Accounts CHART OF ACCOUNTS Southeast Bank General Ledger ASSETS 111 Cash 113 Investment in Trading Securities 121 Accounts Receivable 122 Allowance for Doubtful Accounts 125 Notes Receivable 141 Inventory 151 Supplies 152 Prepaid Insurance LIABILITIES 211 Accounts Payable 221 Notes Payable 224 Interest Payable 231 Salaries Payable EQUITY 311 Common Stock 331 Retained Earnings 351 Dividends 391 Income Summary REVENUE 411 Sales Revenue 431 Interest Income EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 513 Delivery Expense 515 Supplies Expense 521 Advertising Expense 523 Salaries Expense 531 Bad debt Expense 539 Miscellaneous Expenses 540 Interest Expense 895 Loss on Sale of Trading Securities 912 Unrealized Holding Gain/Loss: Trading Securities Show how the bank reports these trading securities on its balance sheet at the end of the fourth quarter of 2018. Additional Instructions Show what the bank reports on its fourth quarter 2018 income statement for these trading securities. Amount Descriptions Investment in Available-for-Sale Securities Investment in Trading Securities (at fair value) Investment in Trading Securities (at cost) Unrealized Loss on Increase in Value of Trading Securities Prepare journal entries to record the 2018 transactions for the fourth quarter. securities had a fair value of $7,020. During the fourth quarter, the bank engaged in the following trading securities transactions: Oct. 26 Purchased 400 shares of Farrell Company common stock for $36 per share. Nov. 26 Sold 260 shares of Eglan common stock for \$26 per share. Dec. 10 Purchased 410 shares of Gray Company common stock for $44 per share. On December 31,2018 , the quoted market prices of the shares were as follows: Eglan Company, \$55 per share; Farrell Company, \$39 per share; and Gray Company, $43 per share. Required: 1. Prepare journal entries to record the 2018 transactions for the fourth quarter. 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 balance sheet at the end of the fourth quarter of 2018. 4. Next Level What justification does the FASB give for its treatment of unrealized holding gains and losses for trading securities