Problem 12-5 (AICPA Adapted) a new same day. machine for P3,600,000 and leased it to West Company the On January 1, 2020, Condor Company purchased The machine has an estimated useful life of 12 years and The lease is for a three-year period expiring January 1, 2023 paid P150,000 to Condor Company as a lease bonus to obtain at an annual rental of P500,000. Additionally, West Company During 2020, Condor Company paid insurance of P50,000 for the leased machine. will be depreciated by the straight line method. the three-year lease. Required: Prepare journal entries on the books of the lessor for the year ended December 31, 2020. Problem 12-6 (PHILCPA Adapted) Manila Company is engaged in leasing heavy equipment. On December 1, 2020, the entity bought a second hand heavy equipment for P375,000. In December 2020, the entity incurred P75,000 for a major overhaul to put the equipment in good running condition. The equipment is available for the intended use on December 31, 2020. The equipment has an estimated useful life of 5 years. Depreciation is on a straight line basis. On April 1, 2021, Manila Company leased the equipment to Makati Company for 2 years up to March 31, 2023. The lease fee is P15,000 per month. Makati Company paid P180,000 on April 1, 2021, the lease fee for one year. During 2021, Manila Company spent P7,000 for minor repairs and P3,000 for transportation of the equipment to Makati Company Required: 2021. Prepare journal entries on the books of lessor for 2020 and