Buzzard 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 $18,000. The company recorded the amount in Prepaid Insurance on July 1. The cost of insurance prior to July totals $2,500. 2. Employee salaries of $25,000 for the month of December will be paid in early January. Salaries paid in the first 11 months of the year totaled $190,000. 3. On November 1, 2024, the company received $6,000 in cash from a customer requesting a custom design for six identical bikes ($1,000 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 $280,000. 4. Supplies at the beginning of the year totaled $2,000. During 2024, additional supplies of $18,000 were purchased and recorded in Supplies at the time of purchase. Supplies remaining at the end of the year total $4,000. 5. Buzzard paid a local radio station $12,000 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 $15,000. 6. Buzzard borrowed $36,000 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 Buzzard Bicycle for the year ended December 31, 2024.