Lily Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow: 1. On February 2, purchased a $21,600, one-year insurance policy for cash. The policy came into effect on that date. 2. On March 15, Lily sold $78,600 in annual subscriptions for cash, with service to begin on April 1. 3. Purchased a delivery drone for $132,000 on July 1 . Lily paid $36,000 in cash and signed a $96,000 bank loan for the balance. The drone is estimated to have a useful life of four years and the company uses straight-line depreciation. The bank loan has an interest rate of 5% 4. On November 1, the company purchased six months of digital advertising at a cost of $100,800. Lily paid $50,400 cash and the balance on account. The advertising was to commence on December 1 and run at a constant level for six consecutive months. 5. On December 1, Lily received $11,600 from the sale of gift cards which could be redeemed for services at a future date. On December 31 , it was determined that 60% of the cards had been redeemed. 3. Jul. 1 Supplics 132000 BankLaan Payable Depreciation Expense 4. Now 1 Advertising Expense 100800 Cash Accounts Payable Q Acrounts Paystile 5. Dec. 1 v Accounts Receivabic