The following data are provided by

Norway Company. The end of reporting period

is December 31, 2018 and the financial

statement are authorized for issue on March

15, 2019.

On December 31, 2018, Norway

Company had a receivable of P400,000

from customer that is due 60 days after

the end of reporting period. On January

15, 2019, a receiver was appointed for

the said customer. The receiver informed

Norway that the P400,000 would be paid

in full by June 30, 2019.

Norway Company measures its

investment in listed shares as held for

trading at fair value through profit or loss.

On December 31, 2018, these

investments were recorded at the market

value of P5,000,000. During the period up

to February 15, 2019, there was a steady

decline in the market value of all the

shares in the portfolio, and on February

15, 2019, the market value had fallen to

P2,000,000.

Norway Company had reported a

contingent liability on December 31,

2018 related to a court case in which

Norway Company was the defendant. The

case was not heard until the first week of

February 2019. On February 11, 2019,

the judge determined that Norway

Company was liable to pay damages and

costs totaling P3,000,000.

On December 31, 2018, Norway

Company had a receivable from a large

customer in the amount of P3,500,000.

On January 31, 2019, Norway Company

was advised in writing by the liquidator of

the said customer that the customer was

insolvent and that only 10% of the

receivable will be paid on April 30, 2019.

Prepare the adjusting entries on December 31, 2020 to reflect the events after the reporting period