Problem #9 Effects of Adjusting Entries Nilo Burgos Haulers is in the cargo business. The entity is servicing the cargo forwarding requirements of businesses within the Calabarzon region. At the end of accountine year, Dec. 31, 2019, the following data must be considered to effect the adjustine entries: a. On July 1, 2019, an eighteen-months insurance coverage on trucks was paid and debited to Prepaid Insurance. Premiums amounted to P18,000 and coverage began immediately. b. During 2019, office supplies amounting to P8,000 were purchased for cash and debited to Office Supplies. At the end of 2018, the inventory count of supplies on hand was P2,000. Inventory of supplies as at Dec. 31, 2019 showed P3,000. On Dec. 31, 2019, Lipa Motors completed repairs on one of the trucks at a cost of P8,000; the amount is not yet recorded and by agreement will be paid during Jan. С. 2020. d. In Dec. 2019, a real property tax assessment for P16,000 on land owned during 2019 was received from the city. The taxes, which are unpaid and unrecorded, are already due but the entity intends to pay them on Feb. 15, 2020. On Dec. 31, 2019, Burgos completed a bulk-hauling contract. The bill was for P80,000 payable within 30 days. No cash has been collected, and no journal entry has been made for this transaction. e. On July 1, 2019, the entity purchased a new hauling van at a cash price of P236,000. The estimated useful life of the van was 10 years, with an estimated residual value of P36,000. No depreciation has been recorded for 2019 (compute depreciation for six months in 2019). f. On Oct. 1, 2019, Burgos borrowed P100,000 from a multi-purpose cooperative on a 6-months, 12% per annum note payable. The principal plus interest is payable at g. the end of 6 months. Required: 1. Prepare the adjusting entries. 2. Describe the effects of the adjusting entries on profit, total assets, total liabilities and owner's equity. Fill in the table and use (+) to indicate an increase and (-) to indicate a decrease to the mentioned items.