The infomation necessary for preparing the December 31, 2021 year-end adjusting entries for Tonic Salon and Spa appears below. Tonic's fiscal year-end is December 31 . a. On July 1, 2021, Tonic purchased $12,000 of Microsoft Corporation bonds at face value. The bonds pay interest twice a year on b. Tonic's depreciable equipment has a cost of $38,400, a slix-year life, and no salvage value. The equipment was purchased in 2019 . January 1 and July 1 . The annual interest rate is 11%. c. On November 1, 2021, the spa area was leased to Tracy Mueller for one year, Tonic recelved \$7,200 representing the first six The straight-Ilne depreclation method is used. d. On April 1, 2021, the company paid $2,880 for a two-year fire and llability insurance policy and debited insurance expense. months" rent and credited deferred rent revenue. d. On October 1, 2021, the company borrowed $24,000 from a local bank and signed a note. Principal and interest at 1\%. wim be paid f. At year-end, there is a $2,000 debit balance in the supplies (asset) account. Only $740 of supplies remain on hand. on September 30, 2022. 2. Determine the amount by which net income would be misstated if Tonic falled to record these adjusting entries. (lgnore income tax 1. Prepare the necessary adjusting journal entries at December 31,2021. Required: expense.) Complete this question by entering your answers In the tabs below. On July 1,2021 , Tonic purchased $12,000 of Microsoft Corporation bonds at face value. The bonds pay interest twice a yearkn-January 1 and July 1 . The annual int rate is 11%. Note: Enter debits before credits. Journal entry worksheet 4 5 (6) Tonic's depreciable equipment has a cost of $38,400, a slx-year life, and no salvnn- value. The equlpment was purchased in 2019. The straight-line depi an method is used. Note: Enter debits before credits. Journal entry worksheet 1 (5) 6 On November 1, 2021, the spa area was leased to Tracy Mueller for one year. Tonic received $7,200 representing the first six months' rent and credited deferred rent revenue. ats before credits. Journal entry worksheet 1. 2 On April 1, 2021, the company paid $2,880 for a two-year fire and liability Insurance policy and debited insurance expense. Note: Enth aits before credits. Journal entry worksheet 1 2 (3. On October 1, 2021, the company borrowed $24,000 from a local bank and signed a note. Princlpal and interest at 11% will be paid on September 30 , 2022. before credits. Journal entry worksheet At year-end, there is a $2,000 debit balance in the supplies (asset) account. Only $740 of supplies remain on hand. Determine the amount by which net income would be misstated if Tonic falled to record these adjusting entrles. (Ignor income tax expense.) (Amounts to be deducted should be Indicated by a minus aign. Do not round intermediate calcul