Long Problem Below is a summary of the accounts and balances of KZ Lacson Garments and other related information on December 31, 2011. | | Balances | Accounts Payable | P | 652,030.00 | Accounts Receivable | | 212,895.00 | Accrued Expenses | | 325,000.00 | Accumulated Depreciation - Store Equipment | | 38,980.00 | Accumulated Depreciation - Office Furniture and Fixtures | | 34,651.00 | Accumulated Depreciation - Office Building | | 56,089.00 | Advertising | | 19,975.00 | Allowance for Doubtful Accounts | | 12,584.00 | Audit and Legal Fees | | 35,000.00 | Cash in Bank | | 230,000.00 | Cash on Hand | | 120,368.00 | Delivery Expense | | 20,360.00 | Freight In | | 125,620.00 | Interest Revenue | | 12,569.00 | Land | | 2,522,400.00 | KZ Lacson, Capital | | 3,560,320.00 | KZ Lacson, Drawing | | 356,200.00 | Merchandise Inventory, December 31, 2011 | | 653,260.00 | Note Payable (Bank Loan) | | 850,000.00 | Notes Receivable | | 125,000.00 | Office Building | | 1,926,205.00 | Office Furniture and Fixtures | | 589,500.00 | Office Supplies | | 65,200.00 | Petty Cash Fund | | 15,000.00 | Postage | | 12,300.00 | Prepaid Insurance | | 32,500.00 | Prepaid Interest on Bank Loan | | 15,200.00 | Purchase Discount | | 21,162.00 | Purchase Returns and Allowances | | 24,120.00 | Purchases | | 972,777.00 | Rent Revenue | | 22,000.00 | Salaries and Wages | | 156,230.00 | Sales | | 3,256,100.00 | Sales Discounts | | 24,560.00 | Sales Returns and Allowances | | 12,560.00 | Store Equipment | | 542,030.00 | Taxes and Licenses - Administrative | | 35,265.00 | Utilities Expense | | 45,200.00 |

Additional Information: 1. Merchandise Inventory on December 31, 2010 amounted to P355,482.00. Inventory and related accounts are adjusted thru the Cost of Goods Sold account.