The Information necessary for preparing the December 31, 2021 year end adjusting entries for Vito's Pizza Parlor appears below Vito's fiscal year-end is December 31 a On July 1, 2021, purchased $12,000 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 11% b. Vito's depreciable equipment has a cost of $38,400, a six-year life, and no salvage value. The equipment was purchased in 2019. The straight-line depreciation method is used. c On November 1, 2021, the bar area was leased to Jack Donaldson for one year. Vito's received $7.200 representing the first six months' rent and credited deferred rent revenue, d On April 1, 2021, the company pald $2,880 for a two-year fire and liability Insurance policy and debited Insurance expense. e On October 1, 2021, the company borrowed $24,000 from a local bank and signed a note Principal and interest at 11% will be pald on September 30, 2022 At year-end, there is a $2,000 debit balance in the supplies (asset) account Only $740 of supplies remain on hand. Required: 1. Prepare the necessary adjusting Journal entries at December 31, 2021. 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. Required Required 2 Prepare the necessary adjusting journal entries at December 31, 2021. If no entry is required for a transaction/event select "No joumal entry required" in the first account field. Do not round intermediate calculations.) View transactionant Journal entry worksheet 2 3 4 5 6 On July 1, 2021, purchased $12,000 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 119. Journal entry worksheet