Can you please help with the attached question, thank you much. 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 $18,500 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1and July 1. The annual interest rate is 10%.b. Vito's depreciable equipment has a cost of $5,200, a four-year life, and no salvage value. The equipment was purchased in2019. 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 $8,100 representing the first sixmonths' rent and credited deferred rent revenue.d. On April 1, 2021, the company paid $1,560 for a two-year fire and liability insurance policy and debited insurance expense.e. On October 1, 2021, the company borrowed $13,000 from a local bank and signed a note. Principal and interest at 10% will bepaid on September 30, 2022.f. At year-end, there is a $1,300 debit balance in the supplies (asset) account. Only $630 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. (Ignoreincome tax expense.)Complete this question by entering your answers in the tabs below. Required 1 Required 2Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignoreincome tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.)Adjustments to revenues:Adjustments to expenses:IncomeOverstated(Understated)$0

Every business organization does financial transactions to run the business. Companies should record…

Required 1 Required 2 Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.) djustments to revenues: djustments to expenses: Income Overstated (Understated)

Required 1 Required 2 Determine the amount by which net income would be misstated if Vito's failed to record these adjusting entries. (Ignore income tax expense.) (Amounts to be deducted should be indicated by a minus sign. Do not round intermediate calculations.) djustments to revenues: djustments to expenses: Income Overstated (Understated)

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter14: Accounting For Uncollectible Accounts Receivable

Section14.1: Uncollectible Accounts Receivable

Problem 2AYU

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If the adjustment for unearned revenues is not recorded O a. net income will be correctly stated. O b. net income will be understated. O c. liabilities will be understated. O d. assets will be overstated.
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