BSA 3103 - Accounting Information System Fixed Assets Cycle Problem 1 Information pertaining to Third Eye Blind Company's property, plant and equipment for 2019 are presented below: Accounts balances at January 1, 2019 Debit Credit Land 150,000 Building 1,200,000 Accumulated depreciation - building 263, 100 Machinery and equipment 900,000 Accumulated depreciation - machinery and equipment 250,000 Automotive equipment 115,000 Accumulated depreciation - automotive equipment 84,600 Depreciation methods used and useful life for each asset class are presented below: Asset class Depreciation method Estimated useful life Building 150% declining balance 25 years Machinery and equipment Straight-line 10 years Automotive equipment Sum-of-the-year's digits 4 years The salvage value of the assets is immaterial. Depreciation is computed to the nearest month. Transactions during 2019 and other information are as follows: On January 1, 2019, Third Eye Blind Purchased a new car for P10,000 cash and trade-in of a two-year old car with a cost of P9,000 and a book value of P2,700. The new car has a cash price of P12,000; market value of trade-in is not known. On April 1, 2019, a machine purchased for P23,000 on April 1, 2014 was destroyed by fire. Third Eye Blind recovered P15,500 from its insurance company. On July 1, 2019, machinery and equipment were purchased at a total invoice cost of P280,000; additional costs of P5,000 for freight and P25,000 for installation were incurred. Third Eye Blind determined that the automotive equipment comprising the P115,000 balance at January 1, 2019 would have been depreciated at a total amount of P18,000 for the year ended December 31, 2019. Required: 2) 1) Journalize the 2019 transactions. Provide the 2019 adjusting journal entries as well. Prepare the PPE rollforward as at and for the year ended December 31, 2019