The information necessary for preparing the 2024 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcat’s fiscal year-end is December 31.
1. At the end of the year, Bearcat calculated that it owed $24,000 in income taxes. Those taxes won’t be paid until next April 15.
2. Salaries owed (but not paid) to employees for work from December 16 through December 31, 2024, are $4,000.
3. On March 1, 2024, Bearcat lent an employee $20,000. The employee signed a note requiring principal and interest at 9% to be paid on February 28, 2025.
4. On April 1, 2024, Bearcat paid an insurance company $13,200 for a two-year fire insurance policy. The entire $13,200 was debited to Prepaid Insurance on April 1 at the time of the purchase.
5. Bearcat used $1,700 of supplies in 2024. The Supplies account was debited at the time of purchases.

6. Bearcat received $2,700 from a customer on October 31, 2024, for three months of personal training that began November 1, 2024. Bearcat credited Deferred Revenue on October 31 at the time of cash receipt.
7. On December 1, 2024, Bearcat paid $6,000 rent to the owner of the building. The payment represents rent for December 2024 through February 2025, at $2,000 per month. Prepaid Rent was debited on December 1 at the time of the payment.

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