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Instructions Southeast Bank invests in trading securities and prepares quarterly financial statements. At the beginning of the fourth quarter of 2018, the bank held as trading securities 280 shares of Eglan Company common stock that originally cost S7,560. At that time, these securities had a fair value of $7,280. During the fourth quarter, the bank engaged in the following trading securities transactions: Oct. 26 Purchased 360 shares of Farrell Company common stock for S36 per share Nov. 26Sold 280 shares of Eglan common stock for $25 per share Purchased 390 shares of Gray Company common stock for $42 per share. Dec. 10 On December 31, 2018, the quoted market prices of the shares were as follows. Eglan Company, $53 per share, Farrell Company, S39 per share and Gray Company, S41 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? Frepare ournal entries to record the 2018 transactions for the fourth quarter Additionel Instructions PAGE GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT Income Statement Show what the bank reports on its fourth quarter 2018 income statement for these trading securities Additional Instructions Southeast Bank Income Statement (partial) For the Year Ended December 31, 2018 Balance Sheet Show how the bank reports these trading securities on its balance sheet at the end of the fourth quarter of 2018 Additional Instructions Southeast Bank Balance Sheet (partial) December 31. 2018 Current assets FASB requires unrealized gans and losses for trading securities to be reported as component of income because