Journal Entries for 2020-2021 PPE

Problem 23-3 (ACP) On January 1, 2020, Enrich Company purchased a machine under the following terms: a. P100,000 downpayment b. Four annual payments of P200,000, the first installment note to be paid on December 31, 2020. The fair value of the machine is not clearly determinable on the date of acquisition. The prevailing rate of interest for this type of obligation is 10%. The present value factors at 10% for four periods are: Present value of 1 .683 Present value of ordinary annuity of 1 3.170 Required: Prepare journal entries for 2020 and 2021