JYD Company began operations on January 1, 2018. Financial statements for the years ended December 31, 2018 and 2019 contained the following errors:

20182019

Ending inventory320,000 understated300,000 overstated

Depreciation expense120,000 understated

Insurance expense200,000 overstated200,000 understated

Prepaid Insurance200,000 understated

In addition, on December 31, 2019, fully depreciated machinery was sold for P220,000 cash but the sale was not recorded until 2020. No corrections have been made for any of the errors. Ignore income tax.

What is the effect of the error on 2019 net income?

What is the total effect of the errors on the amount of working capital at December 31, 2019.

What is the total effect of the errors on the balance of retained earnings at December 31, 2019.