Question: Required: a. Prepare all audit adjusting entries as a result of the foregoing: b. Compute the following: 1. Carrying amount of FVPL at December 31,

Required: a. Prepare all audit adjusting entries as a result of the foregoing: b. Compute the following: 1. Carrying amount of FVPL at December 31, 2020. 2. Gain or loss on the sale of FVPL. 3. Dividend income. 4 Unrealized gain or loss taken to profit or loss. Problem 3 The Investments and Dividend Income accounts of Sanya Company are shown below: Trading Securities Date Description Ref. Debit Credit 6/22/2019 5,000 ordinary shares, par value P100, Sugar Co CD-28 P 520,000 12/31/201 Adjustment to fair value 80,000 9 5/31/2020 500 shares Sugar Co. received as bonus issue GJ-10 12,000 7/10/2020 Sold 1,000 shares @ P130 net CR-21 130,00 0 12/04/202 Sold 1,000 shares @ P140 CR40 140,00 0 0 Dividend Income Date Credit 5/31/2020 Bonus issue (stock dividend) GJ-10 12,000 8/01/2020 Cash dividend on Sugar ordinary shares CR-22 22,500 The following information was obtained during your examination: 1. The December 31, 2019 statement of financial position of Sanya Company showed, among current assets, Trading securities of P600000. 2. You obtained the following information relating to dividends declared by Sugar Company Type of Date of Date of Date of Rate Dividen declared record payment d Stock 4/16/2020 5/10/2020 5/29/2020 10% 6/16/2020 7/16/2020 7/31/2020 P5/share 12/10/202 12/28/202 1/16/2021 P10 per Share 0 O 3. Closing market quotation is P85 as at December 31, 2020. Required: a. Compute the following: 1. Gain or loss on the July 10 sale 2. Gain or loss on the December 4 sale 3. Dividend revenue for the year 2020. 4 Unrealized gain or loss taken to profit or loss as a result of the measurement of the investments at December 31, 2020. 5. Adjusted balance of the investment account at December 31, 2020. h AI Irlif Adiiiqupnfq at Dennmhpr 21 mm

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