The following were discovered during your audit of Black Company's financial statements for the year ended December 31, 2005: g. On December 24, 2005, Black purchased an office equipment for P400,000, terms 215, nJ15. No entry was made on the date of purchase. The same was paid on December 31 , 2005 and the accountant debited Office Equipment and credited cash for P400,000_ Machine C, with a cash price of P128,000, was purchased on January 2, 2005 The company paid P20,000 down and P 10,000 for 12 months. The last payment was made on December 30, 2005. Straight line depreciation, based on a five-year useful life and no salvage value, was recorded at P28,000 for the year. Freight of P4,000 on machine C was debited to the Freight in account Machine P with a cash selling price of P360,000 was acquired on April 1, 2005, in exchange for P400,000 face amount of bonds payable selling at 94, and maturing on April 1, 2015. The accountant recorded the acquisition by a debit to Machinery and a credt to Bonds Payable for P400,000. Straight line depreciation was recorded based on a five-year economic life and amounted to P54,000 for nine months. In the computation of depreciation, residual value of P40,000 was used. Machine A was acquired on January 22, 2005, in exchange for past due accounts receivable of P 140,000, on which an allowance of 20% was established at the end of 2004. The current fair value of the machine on January 22 was estimated at P110,000. The machine was recorded by a debit to Machinery and a creditto Accounts Receivable for P140,000. No depreciation was recorded on Machine A, because it was not installed and never used in operations. On February 2: 2005, Machine A was exchanged for 1 shares of the company's outstanding capital stock with market price of P 105 per share. The Treasury Stock account was debited for P 140,000 with the corresponding credit to Machinery. On December 29, 2005, the company exchanged 10,000 shares of Inc. common stock, whch Black was holding as an investment, for an equipment from De Leon Corporation. The common stock of emg_ng, Inc. which had been purchased by Black for P45 per share, had a quoted market value of P50 per share on the date of exchange. The equipment had a market value of P470,000. The transaction was recorded by a debit to Equipment and a credit to Investment in Eugng, Inc.-Common for P450,ooo_ On December 30, 2005, Machine M with a carrying amount of P120,000 (cost P400:000) was exchanged for a similar asset with a fair value of P 150,000. In addition, Black paid P20,000 to acquire the new machine. The exchange, which lacks commercial substance, was recorded by a debit to Machinery and a credit to cash for P20,ooo. Machine E was recorded at P102, 000, which included the carrying amount of P22,000 for an old machine accepted as a trade in, and cash of P80,000. The cash price of Machine S was P90,000, and the trade in allowance was PIO, 000. This transaction took place on December 31 , 2005 Ms. Beauty, the company's president, donated land and building appraised at P200,000 and P400,000: respectively, to the company to be used as plant site. The company began operating the plant on September 30: 2005. The building is estimated to have a useful life of 25 years. Since no money was involved, no journal entry was made for the above transaction