The information necessary for preparing the 2013 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31. 11. On July 1, 2013, 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%. 12. Vito's depreciable equipment has a cost of $30,000, a five-year life, and no salvage value. The equipment was purchased in 2011. The straight-line depreciation method is used. 13. On November 1, 2013, the bar area was leased to Jack Donaldson for one year. Vito's received $6,000 representing the first six months' rent and credited unearned rent revenue. 14. On April 1, 2013, the company paid $2,400 for a two-year fire and liability insurance policy and debited prepaid insurance. 15. On October 1, 2013, the company borrowed $20,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2014. 16. At year-end, there is a $1,800 debit balance in the supplies (asset) account. Only $700 of supplies remain on hand