Benson Bicycle specializes in custom painting and design of bicycles. December 31 is the company's fiscal year-end. Information necessary to prepare the year-end adjustments appears below. 1. A three-year fire insurance policy was purchased on July 1,2024 , for $19,200. The company recorded the amount in Prepaid Insurance on July 1 . The cost of insurance prior to July totals $2,900. 2. Employee salaries of $25,800 for the month of December will be paid in early January. Salaries paid in the first 11 months of the year totaled $198,000. 3. On November 1,2024 , the company received $7,200 in cash from a customer requesting a custom design for six identical bikes ( $1,200 each). The entire amount is recorded in Deferred Revenue on November 1 . By the end of the year, four of the bikes have been completed. Other revenues generated during the year total $288,000. 4. Supplies at the beginning of the year totaled $2,800. During 2024 , additional supplies of $18,800 were purchased and recorded in Supplies at the time of purchase. Supplies remaining at the end of the year total $4,800. 5. Benson paid a local radio station $12,800 for four months of advertising on December 1,2024 . The advertising will appear evenly over the four-month period. The company recorded the entire amount in Prepaid Advertising on December 1. Advertising costs the first 11 months of the year total $15,400. 6. Benson borrowed $37,200 on March 1, 2024. The principal is due to be paid in five years. Interest is payable each March 1 at an annual rate of 10%. Required: 1. Determine the adjustments needed on December 31, 2024. 2. Prepare an income statement for Benson Bicycle for the year ended December 31, 2024. Note: Amounts to be deducted should be indicated with a minus sign. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Benson Bicycle } \\ \hline \multicolumn{2}{|c|}{ Income Statement } & \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, 2024 } \\ \hline Service Revenue & & \\ \hline & & \\ \hline Expenses: & & \\ \hline Advertising Expense & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total Expenses & & \\ \hline \end{tabular}