E. Audit of Investment

1. Analysis of Investment in ABC Co. shares classified as FVOCI revealed the following ledger entries:2020DebitCredit

Jan-10 Purchased 10,500 shares5,495,700

Jul-15 Share in net income of investee for the first half of 2020150,000

Sep-30 Proceeds from sale of 1,500 shares800,000

Dec-31 Share in net income of investee for the second half of 2020154,300

2. Additional information follows:

a. The client purchased these shares as non-current investment. It recorded the broker's commission amounting to P20,000 to Other Charges

b. The client received cash dividends of P52,500 on April 16, 2020 and credited this amount to other income.

c. On August 30, 2020, the company received 1,500 shares representing share dividends. FV = P540

d. The investee's net income for the first and second halves of 2020 were P1,000,000 and 1,175,619, respectively.

e. Market value per ordinary shares as of December 31, 2020 was P550.

I. Retained Earnings

Retained Earnings, beginning235,400

Net Profit1,688,400

Dividends declared-

Retained Earnings, ending1,923,800

NEED journal Entries for both with reasons wherever calc is there