You have been engaged to examine the financial statements of JUNE Company for the year ended December 31: 2015. The condensed income statement of JUNE Company for the year ended December 31, 2015, is presented below: Sales JUNE Company LNCOME STATEMENT For the Year Ended December 31, 2015 Cost of goods sold Gross Income Operating expenses N et Income 900 ooo 600,000 200,000 400,000 The December 31 2015: audit of the company's financial statements disclosed the following enors: (You are to assume that no closing entries were made by the company in 2015) A _ December 31, 2015, inventory overstatedP40,000 B. Accrued expenses of PS 000 and prepaid expenses ofP8:000were not recognized in the company's books _ C. Sales of P30 000 were not recorded until January 2016: although the goods were shipped in December 2015: and were excluded from the December 31 physical inventory. D. Purchases ofP25 000 madein December 2015: were not recorded although the goods were received and properly included in the December 31 physical inventory. E. A machine was sold for P 12 000 on July 1: 2015: and the proceeds were credited tothe Sales account. The machine was acquired on January 1: 2012 for P80 000. At the time: it had an estimated life of 8 years with no residual value. No depreciation was recorded on this machine in 2015 _