How would the accounting be different from us gaap

Assignment Help Accounting Basics

Reference no: EM131914499

Problem

Midwest Bank invests in trading securities. At the beginning of December 2016, the bank held no trading securities. During December of 2016, it entered into the following trading securities 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 December 2016 transactions.

2. What is the unrealized holding gain or loss, and where is it reported in the 2016 financial statements?

3. Show how the bank reports the trading securities on its December 31, 2016, balance sheet.

4. Next Level If Midwest uses IFRS, how would the accounting be different from U.S. GAAP?

What is the unrealized holding gain or loss, and where is it reported in the 2016 financial statements?

At the end of December an unrealized holding of is reported on the

Show how the bank reports the trading securities on its December 31, 2016, balance sheet. Additional Instructions

Prepare journal entries to record the December 2016 transactions.

Reference no: EM131914499

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