Problem 16-3 (IAA) Effective Company had the following long-term investments at the beginning of the current year: Investment in SMC preference shares, 12% P200 par, 5,000 shares Investment in Benguet ordinary shares, 10,000 shares 1,200,000 1,000,000 During the current year, the following transactions were completed: 1. Purchased 4,000 ordinary shares of ANA Company for P300,000. 2. Received 2,000 ordinary shares of Benguet Company in lieu of a cash dividend of P10 per share. On this date, Benguet ordinary share has a quoted market of P60. 3. Purchased 6,000 ordinary shares of ANA Company for P420,000. 4. Received semiannual dividend on SMC Company 12% preference share. 5. ANA ordinary share was split on a 2-for-1 basis. 6. Sold 8,000 ordinary shares of ANA Company at P85 less transaction costs of 5%. Use average approach. Required: a. Prepare journal entries to record the transactions. b. Prepare a summary of the portfolio of investments stating the number of shares and the corresponding cost