In relation to August 15 transaction, the necessary adjusting journal entry includes

a. A debit to Equity investment-FVTPL of P216,000

b. A debit to Loss of P15,300

c. A credit to Gain of P216,000

d. A credit to Equity investment-FVTPL of P15,300

 

You were able to obtain the following ledger details of Equity investment-FVTPL in connection with your audit of the Strong Corporation for the year ended December 31, 2020: Date Jan. 10 Feb. 20 Mar, 1 May 31 Particulars Purchase of Alpha Co. -6,000 shares Purchase of Beta Co.-7,200 shares Sale of Beta Co. -2,400 shares Receipt of Alpha share dividend-Offsetting Credit to Nature Cash Declared Record Payment 01/02 01/15 01/31 Share 05/02 05/15 05/31 Cash 08/01 08/30 09/15 Closing market quotation as at December 31, 2020: retained earnings Aug. 15 Sale of Alpha-4,800 shares Sept. 1 Sale of Alpha-1,200 shares The following information was obtained during your examination: From independent sources, you determine the following dividend information for Alpha Co. in 2020: Alpha shares Beta shares Bid P210 240 Ask P220 250 Debit P1,440,000 1,800,000 Rate P20/share 10% P30/share Credit 132,000 540,000 1,176,000 276,000