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The information necessary for preparing the December $31,2024,$ year$-$end adjusting entries for Vito's Pizza Parlor appears below.

a$.$ On July $1,2024,$ purchased $$17,000$ of IBM Corporation bonds at face value. The bonds pay interest twice a year on January $1$ and July $1.$ The annual interest rate is $10\%.$

b$.$ Vito's depreciable equipment has a cost of $$6,400,$ a four$-$year life, and no salvage value. The equipment was purchased in $2022.$ The straight$-$line depreciation method is used.

c$.$ On November $1,2024,$ the bar area was leased to Jack Donaldson for one year. Vito's received $$7,200$ representing the first six months' rent and credited deferred rent revenue at the time cash was received.

d$.$ On April $1,2024,$ the company paid $$1,920$ for a two$-$year fire insurance policy and debited prepaid insurance at the time of the payment.

e$.$ On October $1,2024,$ the company borrowed $$16,000$ from a local bank and signed a note. Principal and interest at $10\%$ will be paid on September $30,2025.$

f$.$ At year$-$end, there is a $$1,450$ debit balance in the supplies $($asset$)$ account. Only $$660$ of supplies remain on hand.

Required:

Prepare the necessary adjusting journal entries on December $31,2024.$

Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. $($Ignore income tax expense.$)$

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