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 $ 28,280 Dr. Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory 39,600 Dr. 160 Cr. 75,375 Dr. Supplies 8,040 Dr. Prepaid Insurance 4,980 Dr. Equipment 47,000 Dr. Accumulated Depreciation-Equipment 16,600 Cr. Notes Payable 8,564. Cr. Accounts Payable 9,100 Cr. Social Security Tax Payable 1,210 Cr. Medicare Tax Payable 260 Cr. Yasser Tousson, Capital 106,620 Cr. Yasser Tousson, Drawing 50,000 Dr. Sales 540,980 Cr. Sales Returns and Allowances 14,800 Dr. Purchases Freight In Purchases Returns and Allowances Purchases Discounts Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Interest Expense 323,330 Dr. 4,900 Dr. 9,745 Cr. 47,230 Cr. 27,500 Dr. 2,814 Dr. 105,000 Dr. 8,600 Dr. 250 Dr. The data needed for the adjustments on December 31 are as follows: a.-b. Ending merchandise inventory. $69,150. c. Uncollectible accounts, 0.5 percent of net credit sales of $258,000. d. Supplies on hand December 31, $1.670. e. Expired insurance, $2,490. f. Depreciation Expense-Equipment, $10,800, g. Accrued interest expense on notes payable, $1,625. h. Accrued salaries, $4,700. i. 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 Expense-Equipment . Uncollectible Accounts Expense Required: 1. Prepare a worksheet for the year ended December 31, 20X1. 2. Prepare a classified income statement. The firm does not divide its operating expenses into selling and administrative expenses. 3. Prepare a statement of owner's equity. No additional investments were made during the period. 4. Prepare a classified balance sheet. All notes payable are due within one year. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entries. Analyze: By what percentage did the owner's capital account change in the period from January 1, 20X1; to December 31, 20X1?. Trial Balance Adjustments Adjusted Trial Balance Account Name Debit Credit Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts $ 28,280.00 Debit $ 28,280.00 Income Statement Credit Debit Credit 39,600.00 39,600.00 160.00 1,290 00 1,450.00 Merchandise Inventory 75,375.00 69,150.00 75,375.00 69,150.00 Supplies 8,040.00 6,370 00 Prepaid Insurance 4,980.00 2,490.00 2,490 00 Equipment 47,000.00 47,000.00 Accumulated depreciation-Equip 16,600.00 Notes Payable 8,564 00 Accounts Payable Social Security Tax Payable Medicare Tax Payable 9,100.00 1,210.00 260.00 10030 10,800.00 27,400,00 8,564:00 Salaries Payable 291.00 X 68.00 X 4,700 00 1,625.00 9,100.00 1,501.00 x 328.00 X 4,700.00 Balance Sheet Debit $ 28,280 00 39,600 00 Credit 69,150.00 1,670 00 1.450.00 2,490.00 47,000 00 27,400.00 8,564 00 9,100 00 1,501.00x 328.00 4,700.00 Interest Payable 1,625.00 Yasser Tousson, Capital 106,620.00 106,620.00 Yasser Tousson, Drawing 50,000.00 Income Summary 75,375.00 69,150.00 50,000.00 75,375.00 69,150.00 Sales 540,980 00 540,980.00 Sales Returns and Allowances Purchases Freight In 14,800.00 323,330 00 4,900.00 14,800.00 323,330.00 4,900.00 000 1,625.00 106,620.00 50,000.00 540,980.00 Purchases Returns and Allowances Purchases Discounts 9,745.00 47,230.00 Rent Expense 27,500.00 Telephone Expense 2,814.00 Salaries Expense 105,000.00 Payroll Taxes Expense 8,600.00 Interest Expense 250.00 1,625.00 Supplies Expense 6,370.00 4,700.00 360.00 X 27,500.00 2,814 00 109,700.00 8,960.00 X 1,875.00 6,370.00 9,745.00 47,230.00 14,800.00 323,330.00 4,900 00 27,500.00 2,814.00 109,700 00 8,960.00 X 1,875.00 6,370.00 9,745.00 47 230.00 Insurance Expense 2,490.00 Depreciation Expense-Equipment 10,800.00 2,490 00 10,800.00 2,490.00 Uncollectible Accounts Expense 1,290.00 Totals $740,469.00 $740,469.00 $172,160.00 $172,159.00 1,290 00 $826,724.00 10,800.00 1,290 00 $828,393 00 Net Income $514 829.00 76,901 00 X $591,730 00 $597,955.00 $238,190.00 $161,288.00 76.901.00 x $597,955.00 $238,190.00 $238,189 00 Required 2 >