Problem 1 Requirements:1. The carrying value of investment in King Inc. shares in 2019 is?2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments?Problem 2 requirements:Compute for the adjusted balance of the following:1. Cash2. Accounts Receivable3. Investments4. Property and Equipment.5. Current AssetsThank you so much! Please answer complete One piece antique jar paid out of Purchasing Fund in December, 2019 - seeaudit memo No. 3 (b)Per General Ledgerb. Included in this account is a lot purchased from Victor Gonzales, located in Magsingal, llocos Sur,for P11,428. This was bought in July 1, 2019 on installment basis; P3,428 cash down payment andthe balance, in equal quarterly payments of principal and accruing quarterly interest at 24% perannum starting October 1, 2019. LCV used this lot as part payment of an altar piece of theMagsingal church for a total consideration of P13,428; of which P2,000 was paid in cash andrecorded as Antiques for Sale. Under a three-party agreement among the Parish Council andchurch officials, Victor Gonzales, and LCV, the land title is transferable to the Parish Church upon(2,541)P532,4733. Cash - This consists of the following:Cash in banksOffice petty cash fund (last replenished 12/31/19)Purchasing fund (last replenished 11/30/19)Per General LedgerP10,5262005.300P16,026completion of LCV's obligation. However, the church is allowed by the agreement to convert thisland immediately to a memorial park. Victor and his heirs guaranteed the ultimate transfer of title.Additionally, Victor's family made a cash donation of P2,000 as start up capital for thea. Major December 31, 2019 bank reconciling items:November and December, 2019 issued checks cleared by bank inJanuary, 2020December, 2019 bank credit memo for LCV account as transfer fromIloilo Antique Shop, customer, as part payment of account balancedevelopment of the memorial park.P2,6251,440c. Based on the quarterly payment schedule of principal and accruing interest, LCV recorded aliability in the amount of P10,160 to Due to Stockholder; the same account was debited for P1,480b. January 3 replenishment of Purchasing Fund includes Decemberpurchase of one antique jar(including interest) for LCV's first payment on October 1,2019.2,541Accounts ReceivableBalance Sheet – 12/31/20191.a. December 31 subsidiary ledger balances totalР6,747Per BooksAdjustmentsPer Auditb. No reporting difference by customers exceptIloilo Antique Shop:CashP16,026Accounts receivable6,747Per lloilo recordPer LCV's recordLCV is over (audit memo No. 3a)P550Dividend receivable1,990P1,4401,000Antiques for sale1,273,670552,725Investments5. Dividend Receivable - This represents accrual of the total dividend declared by Artes de Cebu onDecember 28,2019, payable to stockholders of record as of that date.Property and equipment38,7636. Investments - This consists of the following:P1,888,931Short-term marketable equity security,at market, 3/31/20At cost, 12/31/19At market, 12/31/19P532,725Note: Income tax payable is net of quarterly tax paymentsP526,325520,342Notes: 1.Excess of fair market or appraised value of assets over cost is in the following:25% equity in Artes de Cebu, at costPer General LedgerSee related discussions in audit memo Nos. 5 and 1 (d).20,000P552,725Antiques for salesP709,1976,4002,500P718,097Investments7. Property and Equipmenta. LCV office and display center is located in New Manila. It is an old house, reconstructed withoutany change in architectural design for P10,000. Property area is about 2,000 sq. m. This office,Property and Equipment - Landincluding land, office machines, furniture and fixtures, transportation equipment, has carryingvalue of P38,763 net of P3,800 depreciation. Land, as appraised by independent appraiser, is2. Adjustments to income relating to Investments are nontaxable or non-tax deductible items.valued here at P2,500 over cost at December 31, 2019.Ignore these items in income tax provision computation. Problem 2:Problem 1:Prince Inc. acquired 100,000 ordinary shares of Queen Corp. for Php 5 per share and 250,000 ordinary shares March, 2020. Based on your discussions with client's management, they have no objections in the auditof King Inc. for Php 10 per share on January 2, 2018. Both Queen Corp. and King Inc. have 1,000,00 ordinaryshares outstanding. The book values of the net assets of Queen Corp. and King Inc. on the acquisition datewere Php 4,500,000 and Php 9,000,000, respectively. The fair values of the net assets of both Queen Corp.and King Inc. approximated their book values on the acquisition date, except for one of King's depreciableasset having a remaining life of 5 years, which was understated by Php 500,000.You have completed the audit of the December 31, 2019 financial statements of La Casa Vieja, Inc. (LCV) inadjustments that are required to present the financial statements under generally accepted accountingprinciples. The following are your audit memos.1. Company Background:a. LCV is in trading antique pieces like jars of Ming and Song Dynasties, potteries, porcelains, Miranoglasses, old coins of Spanish, Mexican and Chinese origin, old santos, icons, paintings and Spanishhelmets and swords, etc. Each piece has its own history, as if a reconstruction of life in a given era.These pieces were among those found in sunken galleons or excavated or simply transferred fromBoth securities are being held as long term investments. Your investigation revealed the following changes inRetained Earnings of Queen Corp. ad King Inc. for 2018 and 2019 based on their respective audited financialone generation to the other.b. Buying antiques requires special skills in detecting reproduction items from the original ones, andspecial knowledge of archeological and marine discoveries and the history of these pieces. Rare andcentury old pieces command substantially high prices. Its customers, though, are limited to thosestatements:who are super rich. In LCV's case, buying and selling activities are on negotiated prices, covered bycontracts and are approved by the Board of Directors. Security, insurance premiums, research work,King Inc.(350,000)Queen Corp.brochures, representation and entertainment, and professional fees are the major expenses.c. Victor Gonzales started LCV on January 1, 2019, with his inherited antique collections valued by anRetained Earnings (Deficit) 1/1/18Cash Dividends, 2018Profit for 20182,000,000independent antique specialist at P300,000 in December, 2018, as his equity participation to the(250,000)paid up capital of P500,000. These inherited pieces were acquired by his grandmother prior and upto 1958 at a total acquisition cost of P2,450.d. Choosing Cebu as its purchasing power, LCV in January, 2019 acquired a 25% equity in Artes de Cebufor P20,000. At that time, Artes de Cebu had a book value of P60,000. Upon acquisition, Victorbecame its President and Chairman of the Board. Victor believes that goodwill,if any, would have an400,000650,000Retained Earnings 12/31/2018Cash Dividends, 20192,150,000300,000(300,000)600,000(100,000)Profit for 2019250,000estimated life of 10 years. Artes de Cebu's reported audited net income for the year endedDecember 31, 2019 was P3,200; a 10% improvement over last year but Victor intends to improve thisRetained Earnings, 12/31/20192,450,000450,000further in the future.Market values of shares: 12/31/2018Php 7.00 per sh Php 12.00 per shPhp 6.50 per sh Php 15.00 per sh2. Antiques for Salea. These inventory items are valued in the books at P709,197 more than cost, following the samemethod of valuation applied by Victor on his inherited antique collections. The same independentantique specialist was engaged by LCV. The specialist also reported that there was no reproductionitem in the inventory. Cost consists of the following:Market values of shares: 12/31/2019Acquisition costFreight and insuranceImputed interest chargeP525,7236,75032,000P564,473Total recorded costInterest is charged to year-end inventories with a credit to interest income at 24% a year, averageturnover, 3 months.b. The year-end inventory count reconciliation with general ledger disclosed the following (valuationat acquisition cost plus freight and insurance, at specific identification method).Per inventory countCost adjustment on the Magsingal altar - see audit memo No. 7 (b)P546,442(11,428)

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Problem 1 Requirements: 1. The carrying value of investment in King Inc. shares in 2019 is? 2. How much should be reported another comprehensive income/loss in the statement of comprehensive income for 2019 in relation to the investments?