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The following items are necessary for preparing the 2024 year-end adjustments for Gamecock Advertising Agency. Gamecock's fiscal year-end is December 31. 1. On July 1,
The following items are necessary for preparing the 2024 year-end adjustments for Gamecock Advertising Agency. Gamecock's fiscal year-end is December 31. 1. On July 1, 2024. Gamecock received $6,000 from a customer for advertising services to be given evenly over the next 10 months. Revenues related to other advertising provided during the year total $96,000 2. At the end of the year, income taxes owed are $7.000. These taxes won't be paid until next April 15 . 3. On May 1, 2024, the company paid $4,800 for a two-year fire and liability insurance policy. The amount was recorded in Prepaid Insurance on May 1. Insurance costs prior to May total $1,100. 4. On September 1,2024 , the company borrowed $20,000 from a local bank and signed a note. Principal and interest at 12% will be paid on August 31, 2025. 5. At year-end, there is a $2,700 balance in the Supplies account. Only $1,000 of supplies remains on hand at the end of the year. Required: For each item, determine the accounts to be adjusted on December 31,2024 , the balances before adjustment, the amount of the adjustment, and the ending balances. Assume no adjustments were previously made during the year. Note: Amounts to be deducted should be Indleated wlth a minus sign
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