On januaru 1, 20x1, lessor enters into a 4 years lease of equipment. The equipment has a remaining useful life life of 15 years. The annual lease payments, payablr at the end of each year are as follows:

20x1 P 100,000

20x2 120,000

20x3 140,000

20x4 160,000

As an inducement to enter to lease, Lessor granted Lessee the first six months of the lease as rent-free. Lessor receives a lease bonus of

P 20,000.

1. Provides all the journal entries.