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Devon 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 adjusting

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Devon 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 adjusting entries appears below. 1. A three-year fire insurance policy was purchased on July 1, 2021, for $21,900. The company debited Prepaid Insurance for the entire amount 2. Employee salaries of $27,600 for the month of December will be paid in early January 3. On November 1, 2021, the company received $9,900 in cash from a customer requesting a custom design for six identical bikes ($1,650 each). Deferred Revenue was credited for the entire amount. By the end of the year, four of the bikes have been completed 4. Supplies at the beginning of the year totaled $4,600. During 2021, additional supplies of $20,600 were purchased, and the entire amount was debited to Supplies. Supplies remaining at the end of the year total $6,600. 5. Buzzard paid a local radio station $14,600 for four months of advertising on December 1, 2021. The advertising will appear evenly over the four-month period. The company debited Prepaid Advertising for the entire amount 6. Buzzard borrowed $39,900 on March 1, 2021. The principal is due to be paid in five years. Interest is payable each March 1 at an annual rate of 10%. Required: Record the necessary adjusting entries on December 31, 2021. (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.) View transaction list Journal entry worksheet 3 4 1 2 5 6 A three-year fire insurance policy was purchased on July 1, 2021, for $21,900. The company debited Prepaid Insurance for the entire amount. Record the adjusting entry for insurance at its year-end of December 31. Note: Enter debits before credits Dobit General Journal Date Credit

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