Your new audit client, Guimba Company prepared the trial balance below as of December 31, 2021. The company started its operations on January 1, 2020. Your examination resulted in the necessity of applying the adjusting entries indicated in the additional data below. Guimba Company Trial Balance December 31, 2021 Cash 510,000 Accounts Receivable-net 600,000 Inventories, 12/31/2020 669,000 Land 660,000 Building 990,000 Accumulated depreciation, building 19,800 Machinery 444,000 Accumulated depreciation, machinery 45,000 Sinking fund assets 75,000 Bond discount 75,000 Treasury shares 105,000 Accounts payable 567,000 Accrued bond interest 11,250 First mortgage, 6% sinking fund bonds 679,500 Share capital 1,500,000 Share premium 150,000 Donated shares 180,000 Retained earnings, 12/31/2020 222,450 Net sales 2,625,000 Purchases 850,500 Salaries and wages 507,000 Factory operating expenses 364,500 Administrative expenses 105,000 Bond interest 45,000 6,000,000 6,000,000 Additional data are as follows: 1 The 1,500,000 share capital was issued at a 10 percent premium to the owners of the land and buildings on December 31, 2019, the date of organization. Shares with a par value of 180,000 were donated back by the vendors. The company's accountant made an entry with the following details: debit-Treasury shares P180.000 and credit Donated shares P180,000. The shares were donated because the proceeds from its subsequent sale were to be considered as an allowance on the purchase price of land and buildings in proportion to their values as first recorded. The treasury shares were sold in 2021 for P75,000, which was credited to Treasury shares. 2. On December 31, 2021, a machine costing P15,000 when the business started was removed. The machine had been depreciated at 10 percent during the first year. The only entry made was one crediting the Machinery account with its sales price of P6,000. 3. Depreciation is to be provided on the straight-line basis, as follows: buildings, 2 percent of cost; machinery, 10 percent of cost. Ignore residual values. Required: Prepare the necessary adjusting journal entries as of December 31, 2021. Your new audit client, Guimba Company prepared the trial balance below as of December 31, 2021. The company started its operations on January 1, 2020. Your examination resulted in the necessity of applying the adjusting entries indicated in the additional data below. Guimba Company Trial Balance December 31, 2021 Cash 510,000 Accounts Receivable-net 600,000 Inventories, 12/31/2020 669,000 Land 660,000 Building 990,000 Accumulated depreciation, building 19,800 Machinery 444,000 Accumulated depreciation, machinery 45,000 Sinking fund assets 75,000 Bond discount 75,000 Treasury shares 105,000 Accounts payable 567,000 Accrued bond interest 11,250 First mortgage, 6% sinking fund bonds 679,500 Share capital 1,500,000 Share premium 150,000 Donated shares 180,000 Retained earnings, 12/31/2020 222,450 Net sales 2,625,000 Purchases 850,500 Salaries and wages 507,000 Factory operating expenses 364,500 Administrative expenses 105,000 Bond interest 45,000 6,000,000 6,000,000 Additional data are as follows: 1 The 1,500,000 share capital was issued at a 10 percent premium to the owners of the land and buildings on December 31, 2019, the date of organization. Shares with a par value of 180,000 were donated back by the vendors. The company's accountant made an entry with the following details: debit-Treasury shares P180.000 and credit Donated shares P180,000. The shares were donated because the proceeds from its subsequent sale were to be considered as an allowance on the purchase price of land and buildings in proportion to their values as first recorded. The treasury shares were sold in 2021 for P75,000, which was credited to Treasury shares. 2. On December 31, 2021, a machine costing P15,000 when the business started was removed. The machine had been depreciated at 10 percent during the first year. The only entry made was one crediting the Machinery account with its sales price of P6,000. 3. Depreciation is to be provided on the straight-line basis, as follows: buildings, 2 percent of cost; machinery, 10 percent of cost. Ignore residual values. Required: Prepare the necessary adjusting journal entries as of December 31, 2021