On January 1, 2020, Macas Inc. signed an agreement granting Mc Co. to operate as a franchisee for an initial franchise fee of P3,000,000. At that date, an amount of P1,000,000 was paid and the balance is payable in five annual payments beginning January 1, 2021. The present value of the annual payments at 11% is P1,043,300. The agreement provides that the down payment is non-refundable. On April 1, 2020 Mc Co. commenced its operations and all services related to franchise rights required of the franchisor has been substantially performed. In addition to the franchise rights, Macas shall provide a year-long training services beginning on the signing date. These services have a value of P120,000. What is the journal entry to be recorded on December 31, 2020