Reference no: EM132894013

The securities owned by Alyssa Company were held as permanent investments. During 2020 the following transactions occurred.

• Jan. 1 Purchased 20,000 shares of ordinary stock of Lorraine Company at P80 per share.
• March 2 Purchased 20,000 shares of ordinary stock of Regine Company for P1,400,000.
• April 1 Received a cash dividend of P4 per share on the ordinary stock of Lorraine Company.
• May 1 Received 20% stock dividend from Regine Company.
• July 20 Purchased 20,000 shares of ordinary stock of Mikko Company at P75.
• Sept. 1 The ordinary stock of Regine Company was split on a 4-for-1 basis.
• Oct. 1 Received a cash dividend of P4 per share on the ordinary stock of Lorraine Company.
• 31 Regine Company offered stockholders rights to subscribe to one new share for every 10 rights tendered at P50. At the time of issuance the market value of the stock was P60 and the right, P6.
• Nov. 10 Exercised 10,000 of the Regine Company stock rights.
• Dec. 1 Received a cash dividend of P5 per share from Regine Company.
• 15 Sold 20,000 shares of Regine Company at P60 per share and the remaining stock rights at P 8 per stock right.

Required:

Problem 1: Prepare journal entries to record the above transactions.