Problem I- On January 1, 2017, Yssa Company sold a piece of land with a carrying amount of P6,000,000 in exchange for a promissory note with face amount of P7,500,000 and stated interest rate of 5%. The note is payable in annual installments of P2,500,000 plus accrued interest on the outstanding balance. The first installment is due on December 31, 2017. 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 12%. Round off PV factors up to two decimal places and round off figures to nearest peso.

Required:

1. Prepare an amortization table.
2. Prepare all journal entries to record the transactions from January 1,2017 to December 31, 2019.