The information necessary for preparing the 2016 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year end is December 31. On July 1, 2016, purchased $13, 500 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 12%. Vito's depreciable equipment has a cost of $40, 200, a six year life, and no salvage value. The equipment was purchased in 2014. The straight line depreciation method is used On November 1, 2016, the bar area was leased to Jack Donaldson for one year. Vito's received $8, 100 representing the first six months rent and credited deferred rent revenue On April 1, 2016, the company paid $3, 240 for a two year and liability insurance policy and debited insurance expense. On October 1, 2016, the company borrowed $27,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2017. At year end, there is a $2, 150 debit balance in the supplies (asset) account. Only $770 of supplies remain on hand. Prepare the necessary adjusting journal entries at December 31, 2016