please explain step by step

Check The information necessary for preparing the December 2021 year-end adjusting entries for Vito's Pizza Parlor appears below Vios fiscal year end is December 31 a. On July 1 2021. purchased $19.000 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 $6.000 a five year life and no salvage value. The equipment was purchased in 2019 The straight line depreciation method is used con November 1, 2021 the bar area was leased to Jack Donaldson for one year. Vito's received $8,400 representing the first six months rent and credited deferred rent revenue. d. On April 2021, the company paid $1440 for a two-year fire and liability insurance policy and debited Insurance expense e. On October 1, 2021, the company borrowed $12,000 from a local bank and signed a note. Principal and interest at 10% will be paid on September 30, 2022 1. At year-end, there is a $1.250 debit balance in the supplies (asset account. Only $620 of supplies remain on hand. Required: 1. Prepare the necessary adjusting journal entries at December 31, 2021 2. Determine the amount by which net income would be misstated i Vito's failed to record these adjusting entries (Ignore income tax expense