Programs Plus is a retail firm that sells computer programs for home and business use. Programs Plus operates in a state with no sales tax. On December 31, 20X1, its general ledger contained the accounts and balances shown below:

ACCOUNTS	BALANCES
Cash	$	35,280	Dr.
Accounts Receivable		46,600	Dr.
Allowance for Doubtful Accounts		195	Cr.
Merchandise Inventory		82,375	Dr.
Supplies		8,740	Dr.
Prepaid Insurance		6,380	Dr.
Equipment		54,000	Dr.
Accumulated DepreciationEquipment		20,100	Cr.
Notes Payable		9,264	Cr.
Accounts Payable		10,500	Cr.
Social Security Tax Payable		1,560	Cr.
Medicare Tax Payable		330	Cr.
Yasser Tousson, Capital		113,620	Cr.
Yasser Tousson, Drawing		50,000	Dr.
Sales		554,980	Cr.
Sales Returns and Allowances		17,600	Dr.
Purchases		325,430	Dr.
Freight In		5,600	Dr.
Purchases Returns and Allowances		11,145	Cr.
Purchases Discounts		69,560	Cr.
Rent Expense		34,500	Dr.
Telephone Expense		3,164	Dr.
Salaries Expense		112,000	Dr.
Payroll Taxes Expense		9,300	Dr.
Interest Expense		285	Dr.

The data needed for the adjustments on December 31 are as follows:

a.-b. Ending merchandise inventory, $69,850.

Uncollectible accounts, 0.5 percent of net credit sales of $265,000.

Supplies on hand December 31, $2,020.

Expired insurance, $3,190.

Depreciation ExpenseEquipment, $13,600.

Accrued interest expense on notes payable, $2,325.

Accrued salaries, $6,100.

Social Security Tax Payable (6.2 percent) and Medicare Tax Payable (1.45 percent) of accrued salaries.

The following accounts had zero balances:

Salaries Payable

Interest Payable

Income Summary

Supplies Expense

Insurance Expense

Depreciation ExpenseEquipment

Uncollectible Accounts Expense

Required:

Prepare a worksheet for the year ended December 31, 20X1.

Prepare a classified income statement. The firm does not divide its operating expenses into selling and administrative expenses.

Prepare a statement of owners equity. No additional investments were made during the period.

Prepare a classified balance sheet. All notes payable are due within one year.

Journalize the adjusting entries.

Journalize the closing entries.

Journalize the reversing entries.

Analyze: By what percentage did the owners capital account change in the period from January 1, 20X1, to December 31, 20X1?