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Abuisa Bicycle specializes in custom painting and design of bicycles. December 31 is the company's fiscal yeariend. Infomation necessary to prepare the year-end adjusting entries
Abuisa Bicycle specializes in custom painting and design of bicycles. December 31 is the company's fiscal yeariend. Infomation necessary to prepare the year-end adjusting entries appears below. 1. A three-year fire insurance policy was purchased on July 1, 2024, for $19,800. The compony debited Prepaid insurance foc the entire amount on July 1 . 2. Employee salaries of $26.200 for the month of December will be paid in early January. 3. On November 1,2024 , the company recelved $7,800 in cash from a customer requesting a custom design for six identical bikes ( $1,300 each). Deferred Revenue was credited for the entire amount on November 1. By the end of the year, four of the bikes have been completed. 4. Supplies at the beginning of the year totaled $3,200. During 2024, additional supplies of $19,200 were purchased, and the entire amount was debited to Supplies at the time of purchase. Supplies remaining at the end of the year total $5,200. 5. Abuisa paid a local radio station $13,200 for four months of advertising on December 1,2024 . The advertising will appear evenly over the four-month period. The company debited Prepaid Advertising for the entire amount on December L 6. Abuisa borrowed $37,800 on March 1, 2024. The principal is due to be poid in five years. Interest is payable each March tat an annual rate of 10%. Required: Record the necessary adjusting entries on December 31, 2024. (Do not round intermediate calculations. If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet
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