The data needed for the adjustments on December 31 are as follows: a.-b. Ending merchandise inventory, $68,850. c. Uncollectible accounts, 0.5 percent of net credit sales of $255,000. d. Supplies on hand December 31, $1,520. e. Expired insurance, $2,190. f. Depreciation Expense-Equipment, $9,600. g. Accrued interest expense on notes payable, $1,325. h. Accrued salaries, $4,100. 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 31,201. 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