The information necessary for preparing the 2024 year-end adjusting entries for Gamecock Advertising Agency appears below. 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. Gamecock credited Deferred Revenue on July 1.
2. At the end of the year, income taxes owed are $7,000.
3. On May 1, 2024, the company paid $4,800 for a two-year fire and liability insurance policy. The company debited Prepaid Insurance on May 1.
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 debit balance in the Supplies (asset) account. Only $1,000 of supplies remains on hand at the end of the year.

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