Roxas Company reported the following net income:

2018 - P1,750,000

2019 - P2,000,000

An examination of the accounting records for the year ended December 31, 2019 revealed that several errors were made. The following errors were discovered:

• The footings and extensions showed that the inventory on December 31, 2018 was overstated by P190,000.
• Prepaid insurance of P120,000 applicable to 2020 was expensed in 2019.
• Interest receivable of P20,000 was not recorded on December 31, 2019.
• On January 1, 2019, an equipment costing P400,000 was sold for P220,000. At the date of sale, the equipment had accumulated depreciation of P240,000.
• The cash received was recorded as miscellaneous income in 2019.
• In addition, depreciation was recorded for the equipment for 2019 at the rate of 10%.

Required:

1. Prepare worksheet showing corrected net income for 2018 and 2019.
2. Prepare adjusting entries on December 31, 2019 assuming (a) books are still open and (b) books are already closed.