Adjusting entries and income effects problem

The information necessary for preparing the 2016 year-end adjusting entries for Vitos Pizza Parlor appears below. Vitos fiscal year-end is December 31.

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. a. On July 1, 2016, purchased $10,000 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 12% b. Vito's depreciable equipment has a cost of $30,000, a five-year life, and no salvage value. The equipment was purchased in 2014. The straight-line depreciation method is used. c. On November 1, 2016, the bar area was leased to Jack Donaldson for one year Vito's received $6,000 representing the first six months' rent and credited deferred rent revenue. d. On April 1, 2016, the company paid $2,400 for a two-year fire and liability insurance policy and debited nsurance expense. e. On October 1, 2016, the company borrowed $20,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2017 f. At year-end, there is a $1,800 debit balance in the supplies (asset) account. Only $700 of supplies remain on hand Required 1. Prepare the necessary adjusting journal entries at December 31, 2016. (If no entry is required for a transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations.)