P13-7 LO 13.3 Trading Securities 8th State Bank prepares interim financial statements and follows an investment strategy of investing in trading securities. At the beginning of the third quarter of 2018, the bank held the following portfolio of trading securities: June 30, 2018 Security Fair Value 100 shares of Gordan Company common stock 600 shares of Olivia Company common stock Totals s 2,900 2,800 12,600 12,000 14,900 15,400 During the third quarter of 2018, the bank entered into the following trading securities transactions: July 2 Received dividends of $1.50 per share on the Gordan Company common stock. 14 Sold 600 shares of Olivia Company common stock for $20 per share. Aug. 9 Purchased 300 shares of Porter Company common stock for $36 per share 24 Sold 100 shares of Gordan Company common stock for $30 per share. Sept. 17 Purchased 500 shares of Union Company common stock for $22 per share On September 30, 2018, the Porter Company common stock had a quoted market price of $36.50 per share and the Union Company common stock had a quoted market price of $21 per share. Required: 1. Prepare journal entries to record the preceding information. 2. Show what the bank reports on its third quarter 2018 income statement for these trading securities. 3. Show how the bank reports these trading securities on its September 30, 2018, balance sheet. P13-8 Investments in Fquitus