Sheffield Corporation began operations on January 2 . Its year end is December 31 , and it adjusts its accounts anmually. Selected transactions for the current year follow: 1. On February 2, purchased a $18,600, one-vear insurance policy for cash. The policy came into effect on that date. 2. On March 15. Shetfeld sold $78,000 in annual subscriptions for cash with service to begin on April 1 . 3. Purchased a delivery drone for $122,000 on July 1 . Shetfield paid $31,000 in cash and signed a $91,000 bank loan for the balance. The drone is estimated to have a useful ilfe 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 $99,300. Shetfield paid $49,650 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, Sheffield received $11.100 from the sale of gitt 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