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 $13.500 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%. b. Vito's depreciable equipment has a cost of $40,200, 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 recelved $8.100 representing the first six months' rent and credited deferred rent revenue. d. On April 1, 2021, the company paid $3.240 for a two-year fire and liability Insurance policy and debited Insurance expense. e On October 1, 2021, the company borrowed $27.000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2022 1. At year-end, there is a $2,150 debit balance in the supplies (asset) account. Only $770 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.) View transaction at Journal entry worksheet 2 4 > On July 1, 2021, purchased $13,500 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%. Note: Enter debits before credits Transaction General Journal Debit Credit a. Record entry Clear entry View general Journal