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 $31,20$X$1,$ its general ledger contained the accounts and balances shown below:

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

a$.-$b$.$ Ending merchandise inventory, $\backslash$$$67,950.$

c$.$ Uncollectible accounts, $0\mathrm{.}5$ percent of net credit sales of $\backslash (\backslash$$ $246,000\backslash ).$

d$.$ Supplies on hand December $31,\backslash$$$1,070.$

e$.$ Expired insurance, $\backslash$$$1,290.$

f$.$ Depreciation Expense$-$Equipment, $\backslash$$$6,000.$

g$.$ Accrued interest expense on notes payable, $\backslash (\backslash$$ $425\backslash ).$

h$.$ Accrued salaries, $\backslash$$$2,300.$

i$.$ Social Security Tax Payable $(6\mathrm{.}2$ percent$)$ and Medicare Tax Payable $(1\mathrm{.}45$ 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 $31,20$X$1.$

$2.$ 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 $1,20$X$1,$ to December $31,20$X$1?$