prepare the adjusting entires

The information necessary for preparing the December 31, 2021 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31 a. On July 1, 2021, 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 2019. The straight-line depreciation method is used, c on November 1, 2021, 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, d. On April 1, 2021, the company paid $1.920 for a two-year fire and liability insurance policy and debited insurance expense. e On October 1, 2021, the company borrowed $16,000 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 51.450 debit balance in the supplies (asset) account Only $660 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. Wanore income tax expense) Complete this question by entering your answers in the tabs below. Required Reguite 2 Journal entry worksheet 1 2 3 4 5 6 On July 1, 2021, 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% Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View goneral journal