Please answer 15-7

Problem 15-6 (IAA) During 2020, the first year of operations, Beneath Company purchased the following equity securities: Cost Market value Market value December 31, 2020 December 31, 2021 Security One 2,200,000 1,400,000 900,000 Security Two 700,000 1,000,000 1,100,000 Security Three 1,600,000 1,500,000 1,600,000 Security Four 2,000,000 2,500,000 1,200,000 Security One and Security Two are held for trading and Security Three and Security Four are measured as at fair value through other comprehensive income by election. During 2021, the entity sold one-half of Security One for P1,000,000, and one-half of Security Four for P1,300,000. Required: Prepare journal entries for 2020 and 2021. Problem 15-7 (ACP) Chaplain Company was very active in acquiring and selling investments in equity securities. Data regarding the securities are: Cost Market value December 31, 2020 Trading securities 5,000,000 4,600,000 Securities not held for trading 3,000,000 3,100,000 December 31, 2021 Trading securities 5,000,000 5,500,000 Securities not held for trading 3,000,000 3,300,000 The entity made an irrevocable election to present changes in fair value of the securities not held for trading in other comprehensive income. Required: Prepare journal entries to recognize the changes in market value for 2020 and 2021