answer all and give solutions in each questions and explain.

as PROBLEM 6-5 Comprehensive You have been asked by a client to audit the financial statements of Half-Hearted Company for the first time. In examining the books, you found out that certain adjustments had been overlooked at the end of 2020 and 2021. You also discovered that other items had been improperly recorded. These omissions and other failures for each year are summarized below: 2020 2021 Merchandise inventory, end P10,000 P8,000 overstated understated Advances to supplier were recorded purchases but the merchandise was received in 30,000 40,000 the following year: Advances from customers recorded as sales but the goods were delivered in the following year: 20,000 70,000 Improvements on building had been charged to expense on January 1, 2020. Improvements have 100,000 a life of 5 years. On January 1, 2020, an equipment costing P40,000 was sold for P20,000. At the date of sale, the equipment had an accumulated depreciation of P15,000. The cash received was recorded as other income in 2020. Questions: Based on the above and the result of your audit, answer the following: 1. What is the total effect of the errors on the 2020 net income? Understated by P45,000 c. Overstated by $115,000 b. Understated by P25,000 d. Understated by P55,000 2. What is the total effect of the errors on the 2021 net income? a. Overstated by P32,000 c. Overstated by P68,000 b. Overstated by $42,000 d. Overstated by P38,000 3. What is the total effect of the errors on the company's working capital on December 31, 2021? Overstated by P22,000 c. Overstated by $70,000 b. Understated by P48,000 d. Overstated by P30,000 129 a. a. a. Chapter 6 - Correction of Errors cond do (chh2 - 2 4. What is the total effect of the errors on the balance of the company's retained earnings on December 31, 2021? Understated by P13,000 c. Overstated by P183,000 b. Understated by $17,000 d. Overstated by P33,000 5. Necessary adjusting journal entries on December 31, 2021 would require a net Credit to R/E P45,000 c. Credit to Purchases P20,000 Credit to Sales P50,000 d. Debit to Equipment P40,000 a. dosa