P$3-4$A 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.

A three$-$year fire insurance policy was purchased on July $1,2024,$ for $$18,000.$ The company debited Prepaid Insurance for the entire

amount on July $1.$

Employee salaries of $$25,000$ for the month of December will be paid in early January.

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$).$ Deferred Revenue was credited for the entire amount on November $1.$ By the end of the year, four of the bikes have

been completed.

Supplies at the beginning of the year totaled $$2,000.$ During $2024,$ additional supplies of $$18,000$ were purchased, and the entire

amount was debited to Supplies at the time of purchase. Supplies remaining at the end of the year total $$4,000.$

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 debited Prepaid Advertising for the entire amount on December $1.$

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:

Record the necessary adjusting entries on December $31,2024.$

Prepare financial statements from an adjusted trial balance when net income is positive $($ LO$3-5)$