Problem 2:

H Company acquired the following securities in 2016:

Security Classification Cost FV, 12/31/18

A Trading 1,000,000 1,250,000

B Trading 700,000 650,000

C FA at Fair Value-OCI 900,000 920,000

D FA at Fair Value-OCI 300,000 250,000

• On June 1, 2018, H Company received P50,000 cash dividend from security C and P10,000 from security A.

• On January 31, 2019 All trading securities were sold for P2,000,000.

• At December 31, 2019, the fair value of securities C is P850,000 and security D is P320,000.

Required:

1. Journal entries for 2018.

2. Adjusting entry on 12/31/18.

3. Journal entry to record the sale on January 31, 2019.

4. Carrying value of the investment as of 12/31/19.

(please show solution)