Nakpil Inc. prepared its financial reports for the year ending December 31, 2017. Nakpil Inc.

employs
periodic system in recording its inventory. In her last review of the accounting records, the accountant
noticed the following errors:

 Prepayments for insurance worth 12,000 were paid and expensed at the beginning of 2017. The
policy is good for 2 years, however, none of the unused portion was recognized by December
31, 2017.
 Annual rent amounting to 36,000 was paid starting June 1, 2017. It was recorded as an asset at
the time of payment. No adjustment was made for this account as of December 31, 2017.
 Accrual for salaries amounting to P10,000 was omitted at the end of 2017.
 Accrual for interest receivables amounting to P55,000 was omitted at the end of 2017.
 Footing and extension errors caused the inventory at December 31, 2017 to be understated by
P11,880.
 Purchases of P17,100 in 2017 was recorded as purchases of 2018.