On December 31, 2021, Omega Corporation sold for P500,000 an old machine having an original cost of P700,000 and a book value of P200,000, the term of the sale were as follows:

P100,000 down payment

P200,000 payable on December 31 each of the next two years

The agreement of sale made no mention of interest, however, 9% would be a fair rate for this type of transaction. Round-off PV factors up to two decimal places.

Required:

1. A table of amortization

2. Journal entries from December 31, 2021 to December 31, 2023, with supporting computations