Answered step by step
Verified Expert Solution
Question
1 Approved Answer
P 3 - 4 A Buzzard Bicycle specializes in custom painting and design of bicycles. December 3 1 is the company's fiscal year - end.
PA Buzzard Bicycle specializes in custom painting and design of bicycles. December is the company's fiscal yearend.
Information necessary to prepare the yearend adjusting entries appears below.
A threeyear fire insurance policy was purchased on July for $ The company debited Prepaid Insurance for the entire
amount on July
Employee salaries of $ for the month of December will be paid in early January.
On November the company received $ in cash from a customer requesting a custom design for six identical bikes
$ each Deferred Revenue was credited for the entire amount on November By the end of the year, four of the bikes have
been completed.
Supplies at the beginning of the year totaled $ During additional supplies of $ were purchased, and the entire
amount was debited to Supplies at the time of purchase. Supplies remaining at the end of the year total $
Buzzard paid a local radio station $ for four months of advertising on December The advertising will appear evenly
over the fourmonth period. The company debited Prepaid Advertising for the entire amount on December
Buzzard borrowed $ on March The principal is due to be paid in five years. Interest is payable each March at an
annual rate of
Required: put in excel
Record the necessary adjusting entries on December
Prepare financial statements from an adjusted trial balance when net income is positive LO
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started