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P 4 - 4 Buzzard Bicycle specializes in custom painting and design of bicycles. December 3 1 is the company's fiscal year - end. Information
P Buzzard Bicycle specializes in custom painting and design of bicycles. December is the company's fiscal yearend. Information
necessary to prepare the yearend adjustments appears below.
A year fire insurance policy was purchased on July for $ The company recorded the amount in Prepaid Insurance
on July The cost of insurance prior to July totals $
Employee salaries of $ for the month of December will be paid in early January. Salaries paid in the first months of the
year totaled $
On November the company received $ in cash from a customer requesting a custom design for six identical bikes
$ each The entire amount is recorded in Deferred Revenue on November By the end of the year, four of the bikes have
been completed. Other revenues generated during the year total $
Supplies at the beginning of the year totaled $ During additional supplies of $ were purchased and recorded in
Supplies at the time of purchase. Supplies remaining at the end of the year total $
Buzzard paid a local radio station $ for months of advertising on December The advertising will appear evenly over
the month period. The company recorded the entire amount in Prepaid Advertising on December Advertising costs the first
months of the year total $
Buzzard borrowed $ on March The principal is due to be paid in years. Interest is payable each March at an
annual rate of
Required:
Determine the adjustments needed on December
Prepare an income statement for Buzzard Bicycle for the year ended December
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