Instructions Midwest Bank invests in equity securities. At the beginning of December 2019, the bank held no equity securities. During December of 2019, it entered into the following transactions: Dec. 10 Purchased 500 shares of Carroll Company common stock for $76 per share. Dec. 21 Purchased 800 shares of Dynamo Company common stock for $34 per share. At the end of December, the Carroll Company common stock had a quoted market price of $79 per share, and the Dynamo Company common stock had a quoted market price of $33 per share. Required: 1. Prepare journal entries to record the preceding information. 2. What is the unrealized holding gain or loss, and where is it reported in the 2019 financial statements? 3. Show how the bank reports the equity securities on its December 31, 2019, balance sheet. 4. Next Level If Midwest uses IFRS, how would the accounting be different from U.S. GAAP? Chart of Accounts CHART OF ACCOUNTS Midwest Bank General Ledger ASSETS 111 Cash 113 Investment in Equity Securities 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 910 Income Tax Expense 912 Unrealized Holding Gain/Loss-Equity Securities EQUITY 311 Common Stock 331 Retained Earnings General Journal 1. Prepare journal entries to record the December 2019 transactions. General Journal Instructions 1 2 3 4 5 6 GENERAL JOURNAL DATE ACCOUNT TITLE PAGE 1 POST REF. DEBIT CREDIT Analysis 2. What is the unrealized holding gain or loss, and where is it reported in the 2019 financial statements? At the end of December an unrealized holding is reported on the Balance Sheet 3. Show how the bank reports the equity securities on its December 31, 2019, balance sheet Balance Sheet Instruction 1 2 Midwest Bank Partial Balance Sheet December 31, 2019 Current assets