The information necessary for preparing the December $31,2024,$ year$-$end adjusting entries for Vitos Pizza Parlor appears below.On July $1,2024,$ purchased $$10,000$ of IBM Corporation bonds at face value. The bonds pay interest twice a year on January $1$ and July $1.$ The annual interest rate is $12\%.$Vitos depreciable equipment has a cost of $$30,000,$ a five$-$year life, and no salvage value. The equipment was purchased in $2022.$ The straight$-$line depreciation method is used.On November $1,2024,$ the bar area was leased to Jack Donaldson for one year. Vitos received $$6,000$ representing the first six months rent and credited deferred rent revenue at the time cash was received.On April $1,2024,$ the company paid $$2,400$ for a two$-$year fire insurance policy and debited prepaid insurance at the time of the payment.On October $1,2024,$ the company borrowed $$20,000$ from a local bank and signed a note. Principal and interest at $12\%$ will be paid on September $30,2025.$At year$-$end, there is a $$1,800$ debit balance in the supplies $($asset$)$ account. Only $$700$ of supplies remain on hand.Required:Prepare the necessary adjusting journal entries on December $31,2024.$Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. $($Ignore income tax expense.$)$