An analysis of the incomplete records of Emerald Company produced the following information applicable to 2019:

Increases

Cash P420,000

Accounts receivable 140,000

Accounts payable 40,000

Prepaid insurance 20,000

Decreases

Inventory P100,000

Equipment 10,000

Notes receivable 60,000

Salaries payable 30,000

Summary of cash transactions

Receipts:

Cash sales P 300,000

Collections on accounts receivable 3,000,000

Collections on notes receivable 240,000

Interest on notes receivable 20,000

Purchase returns and allowances - (total purchase returns and allowances, P80,000) 50,000

Disbursements:

Cash purchases P100,000

Payments on accounts payable P1,650,000

Sales returns and allowances - (total sales returns and allowances, P120,000) 40,000

Insurance 70,000

Salaries 1,000,000

Equipment 80,000

Other expenses 150,000

Dividends 100,000

Required:

a) Income statement for the year ended December 31, 2020.

b) Proof of the net income or loss using the single-entry method.