I need help with requirement 2!! I do not understand it!

Problem 2-7 Adjusting entries and income effects [LO2-4, 2-5) The information necessary for preparing the 2018 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31 a. On July 1, 2018, 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%. equipment was purchased in 2016. The straight-line depreciation method is used. $8,400 representing the first six months' rent and credited deferred rent revenue. debited insurance expense. and interest at 10% will be paid on September 30, 2019 remain on hand b. Vito's depreciable equipment has a cost of $6,000, a five-year life, and no salvage value. The C. On November 1, 2018, the bar area was leased to Jack Donaldson for one year. Vito's received d. On April 1, 2018, the company paid $1,440 for a two-year fire and liability insurance policy and f. At year-end, there is a $1,250 debit balance in the supplies (asset) account. Only $620 of supplies 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.)