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Hometowne Bicycle specializes in custom painting and design of bicycles. December 31 is the companys...

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Accounting

Hometowne Bicycle specializes in custom painting and design of bicycles. December 31 is the companys fiscal year-end. Information necessary to prepare the year-end adjustments appears below. A three-year fire insurance policy was purchased on July 1, 2024, for $19,500. The company recorded the amount in Prepaid Insurance on July 1. The cost of insurance prior to July totals $3,000. Employee salaries of $26,000 for the month of December will be paid in early January. Salaries paid in the first 11 months of the year totaled $200,000. On November 1, 2024, the company received $7,500 in cash from a customer requesting a custom design for six identical bikes ($1,250 each). The entire amount is recorded in Deferred Revenue on November 1. By the end of the year, four of the bikes have been completed. Other revenues generated during the year total $290,000. Supplies at the beginning of the year totaled $3,000. During 2024, additional supplies of $19,000 were purchased and recorded in Supplies at the time of purchas

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