for $29,600, and purchased trading securities for $65,200. The bank sold securities available for sale with a cost (and carrying value) of $58,700 for $53,600, and purchased securities available for sale for $39,400. It also made routine 90-day loans of $47,500 to customers and collected $20,000 principal on these customer loans. As a result of the preceding information, the bank’s trading securities account increased by $43,500, the securities
You are the new accountant for 12th National Bank and are preparing its 2019 statement of
Directions
- Research the applicable GAAP and prepare a written memo to the 12th National Bank’s auditors that explain how you plan to report the preceding items on the bank’s 2019 statement of cash flows. Cite your reference and applicable paragraph numbers.
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