Problem 4 For the three consecutive years, the River Company failed to recognize accruals, prepayments, and other transactions in its records. Reported prots and a listing of errors appear below. when paid in the subsequent year, merchandise properly included in ending inventory 2018 2019 2020 Reported profit (loss) P490000 P8?0,000 P(320,000) a. Failed to record accrued expenses 34,000 28,000 43,000 b. Overstated ending inventories 03,000 28,000 30,000 c. Failed to record accrued interest on notes receivable 12,000 0,000 8,000 d. Failed to recognize uneamed rent 24,000 20,000 18,000 e. Failed to record purchases on account; purchases were recorded 25,000 20,000 f. Repairs and maintenance incurred during the year capitalized as 120,000 80,000 part of asset cost. Full year depreciation atan annual rate of 10% is provided in the year that the asset is recognized. g. Failed to recognize prepaid insurance at yearend. 4,800 8,200 I800 Required: a. Prepare a schedule to conect the reported prot for each year. Page 2 of 6 Thouhim}. 2620M! _ an .tnkiutndi std Lumkkusl-ErrtEE-wz- b. Prepare the necessary correcting entries in 2020, assuming that the books for 2020 are still open