On January 1, 2020, Magic Company sold a piece of land with a carrying amount of P5,500,000 in exchange for a 10% promissory note with a face amount of P6,000,000. The note is payable in annual installments of P1,500,000 plus accrued interest on the outstanding balance. The first installment is due on December 31, 2020. There is no established cash price for the land and the note has no ready market. The prevailing interest for a note of this type is 8%.

Requirements: (Round off present value factors to 4 decimal places).

1. Prepare an amortization table.

2. Prepare all journal entries to record the transactions from January 1, 2020 to December 31, 2023.