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Please answer H.iii

185 State Street Corporation-Marketable Securities State Street Corporation, tracing its beginnings to the founding of the Union Bank in 1792, is a major financial holding company with headqwarters in Boston State Street operates primarily throwgh its principal banking swbsidiary, State Street Bank and Thust, with a focus on serving institutional investors. State Streer operates two lines of bucriness, Invertment Servicing and Investment Management, to support instinutional invertors woridwide. Products include brokerage and other rading services, securities finance, deposit and short-term irvestment faclities performance,risk and investment research and investment management Sowrce: Company 2012 Form 10- Learning Objectives .Distinguish among securities classified as trading, available-for-sale, and held-to-maturity Interpret footnote disclosures of investment sccurities and analyze investment security accounts. Prepare journal entries for securities purchases, sales, and year-end market-value adjustments. Understand and critique the accounting treatment for marketable securities. Refer to the 2012 financial statements and notes for State Street Corporation. Concepts Consider trading securities. Note that financial institutions such as State Street typically call these securities "Trading account assets." i. In general, what are trading securities? ii. How would a company record S1 of dividends or interest received from trading securities? iii. If the market value of trading securities increased by S1 during the reporting period, what a. journal entry would the company record? b. Consider securities available-for-sale. Note that State Street calls these, "Investment securities available for sale." i. In general, what are securities available-for-sale? ii. How would a company record $1 of dividends or interest received from securities available-for- sale? ili. If the market value of securities available-for-sale increased by S1 during the reporting period what journal entry would the company record? In general, what are these securities? Why are equity securities never classified as held-to- maturity? i. ifthe market value of securities held-to-maturity increased by $1 during the reporting period, what journal entry would the company record? ii. Consider the "Trading account assets" on State Street's balance sheet. i. d. What is the balance in this account on December 31, 20127 What is the market value of these securities on that date? Stato Street Corporatilon-Markotable Securities reserved No part of his publication may b Coppright 2015 by Cambridge Baziness Pabiabers, LEC AWN righes r

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