Susan Company reported the following net income:

2018 - P3,000,000

2019 - P4,000,000

In an audit for the current year, the following errors are discovered:

• December 31, 2018 inventory was understated by P20,000
• December 31, 2019 inventory was overstated by P18,000
• Depreciation for 2018 was understated by P4,000
• P15,000 insurance premium for a 3-year period was charged to expense on January 1, 2018. No prepayment was recorded.
• A fully depreciated machinery was sold on December 31, 2019 but the sale was not recorded until 2020.
• The cost of the machinery if P200,000 and the proceeds from the sale amounted to P32,000.

Required:

1. Prepare worksheet showing corrected net income for 2018 and 2019.
2. Prepare adjusting entries on December 31, 2019.