Required:

Record the necessary adjusting entries on December $31,2024.$ No prior adjustments have been made during $2024.$

Record adjusting entries $($ LO$3-3)$

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 $10\%.$Financial information for Buckle is presented in Appendix B at the end of the book.

Required:

$1.$ For the most recent year, what amount does Buckle report for current assets? What is the ratio of current assets to total assets?

$2.$ For the most recent year, what amount does Buckle report for current liabilities? What is the ratio of current liabilities to total liabilities?

$3.$ For the most recent year, what is the change in retained earnings reported in the balance sheet?

$4.$ For the most recent year, what is the amount of net income reported in the income statement?

$5.$ Calculate the amount of dividends during the year using only your answers in questions $3$ and $4$ above. $*$This is an Excel problem$*$