I've already answered 1) Prepare the adjusting entries. But the second one confuses me a bit because of profit. If it affects the owner's equity, does it automatically affect profit or not? And why? What are the answers for 2) Describe the effects of the adjusting entries...

Problem # 14 Effects of Adjusting Entries The following information relates to Norma Gappi Electronics on Dec. 31, 2021. The entity uses the calendar year as its annual reporting period. The entity records defenfid in balance sheet accounts. a. Weekly payroll is P84,000, paid every Friday for a five-day workweek. Assume that Dec. 31,2021 , falls on a Wednesday so the employees will not be paid until Friday, 5an. 2, 2022. b. Eighteen months earlier, on July 1, 2020, the entity purchased a servio equipment that cost P100,000 and had no saivage value. Its useful life us estimated to be five years. c. On Oct. 1, 2021, the entity agreed to work on a new housing developmett project. The contract is for the installation of home alarm systems for 24 new homes. The entity was paid P1,440,000 in advance on Oct. 1, 2021. By the end of the current year, works on 18 homes have been completed. d. On Sept. 1, 2021, the entity purchased a one-year insurance policy for P12,000. e. On Dec. 29, 2021, upon comparison of service reports and billings, senices rendered which remains unbilled totaled P50,000. 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 ineraati