REQUIRED: 1. Present a list of correcting entries for the above errors. 2. Present a corrected trial balance PART I. The following Income Statement was prepared by the bookkeeper of FRANZ Sales Co. before the books were closed at the end of the calendar year: FRANZ Sales Co. Income Statement For the Calendar year Ending December 21, 2018 P4,388,976 26,300 P4,362,676 Sales Less: Sales returns and allowances Net Sales Less: Cost of Sales: Merchandise Inventory, 1.1.18 Add: Net Purchases: P693,640 Freight In Gross Purchases Less: Returns&Allowances 32,070 P3,436,750 27,625 P3,464,375 P4,125,945 Total Goods Available for Sale Less: Merchandise Inventory, 12.31.18 Cost of Sales Gross Profit on Sales Less: Operating Expenses: P1,075,636 P288,700 224,000 21,960 9,536 10,944 13,830 32,000 24,000 14,500 20,300 4 500 Store Rent SSS and Phil health Premiums Light and Water Taxes and Licenses Bad Debts Miscellaneous 664 270 P411,366 Income from Sales Less: Sales discounts Interest Income from Operations P15,830 144,000 159,830 The following errors were discovered in relation to the preceding income statement: 1. The merchandise inventory, 1.1.18 was overstated by P32,050. (The business is using FRANZ, Capital as owner's capital account title.) A purchase invoice for P35,000 was unrecorded. The merchandise however was properly included in the ending inventory. 2. 3. Freight In of P800 relative to the above invoice was still unpa 4. A number of id and unrecorded. errors in costing the merchandise inventory were committed. The net effect of the errors is to increase ending inventory by P42,100. REQUIRED: 1. Present a list of correcting entries for the above errors. 2. Present a corrected trial balance PART I. The following Income Statement was prepared by the bookkeeper of FRANZ Sales Co. before the books were closed at the end of the calendar year: FRANZ Sales Co. Income Statement For the Calendar year Ending December 21, 2018 P4,388,976 26,300 P4,362,676 Sales Less: Sales returns and allowances Net Sales Less: Cost of Sales: Merchandise Inventory, 1.1.18 Add: Net Purchases: P693,640 Freight In Gross Purchases Less: Returns&Allowances 32,070 P3,436,750 27,625 P3,464,375 P4,125,945 Total Goods Available for Sale Less: Merchandise Inventory, 12.31.18 Cost of Sales Gross Profit on Sales Less: Operating Expenses: P1,075,636 P288,700 224,000 21,960 9,536 10,944 13,830 32,000 24,000 14,500 20,300 4 500 Store Rent SSS and Phil health Premiums Light and Water Taxes and Licenses Bad Debts Miscellaneous 664 270 P411,366 Income from Sales Less: Sales discounts Interest Income from Operations P15,830 144,000 159,830 The following errors were discovered in relation to the preceding income statement: 1. The merchandise inventory, 1.1.18 was overstated by P32,050. (The business is using FRANZ, Capital as owner's capital account title.) A purchase invoice for P35,000 was unrecorded. The merchandise however was properly included in the ending inventory. 2. 3. Freight In of P800 relative to the above invoice was still unpa 4. A number of id and unrecorded. errors in costing the merchandise inventory were committed. The net effect of the errors is to increase ending inventory by P42,100