JOURNAL ENTRIES FOR DEC 31, 2004

MYSTERYSCOT MANUFACTURING purchased a machine on January 1, 2000 for P50,000. At the time, it was determined that the machine has an estimated useful life of 10 years and an estimated residual value of P2,000. The company used the double declining balance method of depreciation. On January 1, 2004, the company decided to change its depreciation method from double declining balance to straight line. The machine's remaining useful life was estimated to be 5 years with a residual value of P 1,000.