Programs Plus is a retail firm that sells computer programs

Programs Plus is a retail firm that sells computer programs for home and business use. On
December 31, 2019, its general ledger contained the accounts and balances shown
below:ACCOUNTS ..............................................................BALANCESCash
...........................................................................$ 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:Interest PayableSalaries PayableIncome SummarySupplies ExpenseInsurance
ExpenseDepreciation Expense-EquipmentUncollectible Accounts ExpenseThe 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.INSTRUCTIONS1. Prepare a worksheet for the year ended December 31, 2019.2.
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, 2019, to
December 31, 2019?View Solution: Programs Plus is a retail firm that sells computer programs

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