JOURNAL ENTRIES - DEC 31, 2004

Equipment acquired by MYSTERYSCOT MANUFACTURING for P30,000 on June 30, 2002 was sold for P26,000 cash on July 1, 2004. The proceeds from the same were credited to the equipment account. The company depreciates equipment at 10% a year. Depreciation is taken up at year- end computed on a monthly basis. Depreciation of P1,600 was recorded in 2004.