[criz_24]

The records of Jerick Corp. show the following information:
(a) Purchased a three-year insurance policy for Php7,200 on September 1, 2012, and recorded the premium payment in the asset account.
(b) Borrowed Php60,000 on a 1-year, 12% note on July 1, 2012. Interest is payable at maturity.
(c) Collected Php8,400 on October 1, 2012, to cover six months’ rent paid in advance, and recorded the receipt in a liability account.
(d) The Allowance for Doubtful Accounts shows an unadjusted balance of Php300 (debit) as of December 31, 2012. Based on an aging of receivables, it is determined that the balance in the allowance account should be Php1,775 at December 31, 2012.
(e) Machinery purchased on January 1, 2012, for Php300,000 is to be depreciated at the rate of 20 percent per year.

[Fr_Chuck]

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