Check The information necessary for preparing the 2018 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year- ends December 31 a On July 1 2018. purchased $18.500 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 10% b Vito's depreciable equipment has a cost of $5,200, a four-year life, and no salvage value. The equipment was purchased in 2016 The straight line depreciation method is used c. On November 1, 2018, 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 d On April 1, 2018, the company paid $1,560 for a two-year fire and liability insurance policy and debited insurance expense e On October 1, 2018, the company borrowed $13 000 from a local bank and signed a note. Principal and interest at 10% will be paid on September 30, 2019 * At year-end, there is a $1300 debit balance in the supplies (asset) account Only $630 of supplies remain on hand Required: 1. Prepare the necessary adjusting journal entries at December 31, 2018 2. Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. Ignore income tax expense) Complete this question by entering your answers in the tabs below. Reguted 1 Recured Prepare the necessary adjusting yournal entries at December 31, 2018. (If no entry is required for a transaction event select No ournal entry r e d in the first account held. Do not round intermediate calculations) Journal entry worksheet Prepare the necessary adjusting journal entries at December 31, 2018. (If no entry is required for a transaction/e entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 2 3 4 5 6 On July 1, 2018, purchased $18,500 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 10%. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry View general Journal Required 2 ) i Prev of 3 Next > entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet 3 4 5 6 Vito's depreciable equipment has a cost of $5,200, a four-year life, and no salvage value. The equipment was purchased in 2016. The straight-line depreciation method is used. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal Required 2 > Prepare the necessary adjusting journal entries at December 31, 2018. (If no entry is required for a transaction/ entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Prepare the necessary adjusting journal entries at December 31, 2018. (If no entry is required for a tran entry required" in the first account field. Do not round intermediate calculations.) View transaction list Journal entry workshe Prepare the necessary adjusting journal entries at December 31, 2018. (If no entry is required for a entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Prepare the necessary adjusting journal entries at December 31, 2018. (If no entry is required for a transaction entry required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet