9. 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 $ 15,280 Dr.

Accounts Receivable 26,600 Dr.

Allowance for Doubtful Accounts 95 Cr.

Merchandise Inventory 62,375 Dr.

Supplies 6,740 Dr.

Prepaid Insurance 2,380 Dr.

Equipment 34,000 Dr.

Accumulated Depreciation—Equipment 10,100 Cr.

Notes Payable 7,264 Cr.

Accounts Payable 6,500 Cr.

Social Security Tax Payable 560 Cr.

Medicare Tax Payable 130 Cr.

Yasser Tousson, Capital 93,620 Cr.

Yasser Tousson, Drawing 50,000 Dr.

Sales 514,980 Cr.

Sales Returns and Allowances 9,600 Dr.

Purchases 319,430 Dr.

Freight In 3,600 Dr.

Purchases Returns and Allowances 7,145 Cr.

Purchases Discounts 5,760 Cr.

Rent Expense 14,500 Dr.

Telephone Expense 2,164 Dr.

Salaries Expense 92,000 Dr.

Payroll Taxes Expense 7,300 Dr.

Interest Expense 185 Dr.

The following accounts had zero balances:

Salaries Payable Interest Payable Income Summary Supplies Expense Insurance Expense Depreciation Expense—Equipment Uncollectible Accounts Expense The data needed for the adjustments on December 31 are as follows:
a.–b. Ending merchandise inventory, $67,850.

c. Uncollectible accounts, 0.5 percent of net credit sales of $245,000.

d. Supplies on hand December 31, $1,020.

e. Expired insurance, $1,190.

f. Depreciation Expense—Equipment, $5,600.
g. Accrued interest expense on notes payable, $325.
h. Accrued salaries, $2,100.
i. Social Security Tax Payable (6.2 percent) and Medicare Tax Payable (1.45 percent) of accrued salaries.
INSTRUCTIONS 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. Use 25 as the first journal page number.
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?