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 550 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 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 EQUITY 311 Common Stock 331 Retained Earnings 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

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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

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 550 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

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

	EQUITY
311	Common Stock
331	Retained Earnings

	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