Skip to main content Week 4 Assignment AnswerSaved Help opens in a new window Save & Exit Submit Item1 5 points eBook References Item 1 Item 1 5 points The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger contained the accounts and balances that appear below. ACCOUNTS AND BALANCES Cash $ 6,200 Dr. Accounts Receivable 3,100 Dr. Allowance for Doubtful Accounts 57 Cr. Merchandise Inventory 11,800 Dr. Supplies 1,250 Dr. Prepaid Advertising 900 Dr. Store Equipment 8,400 Dr. Accumulated DepreciationStore Equipment 1,550 Cr. Office Equipment 1,900 Dr. Accumulated DepreciationOffice Equipment 330 Cr. Accounts Payable 2,675 Cr. Social Security Tax Payable 480 Cr. Medicare Tax Payable 93 Cr. Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital 27,947 Cr. Beth Argo, Drawing 20,500 Dr. Sales 92,548 Cr. Sales Returns and Allowances 1,150 Dr. Purchases 47,900 Dr. Purchases Returns and Allowances 480 Cr. Rent Expense 6,500 Dr. Telephone Expense 640 Dr. Salaries Expense 14,600 Dr. Payroll Taxes Expense 1,320 Dr. Income Summary Supplies Expense Advertising Expense Depreciation ExpenseStore Equipment Depreciation ExpenseOffice Equipment Uncollectible Accounts Expense ADJUSTMENTS a.b. Merchandise inventory on December 31, 2019, is $12,821. During 2019, the firm had net credit sales of $40,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts. On December 31, 2019, an inventory of the supplies showed that items costing $300 were on hand. On October 1, 2019, the firm signed a six-month advertising contract for $900 with a local newspaper and paid the full amount in advance. On January 2, 2018, the firm purchased store equipment for $8,400. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $650. On January 2, 2018, the firm purchased office equipment for $1,900. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $250. On December 31, 2019, the firm owed salaries of $1,880 that will not be paid until 2020. On December 31, 2019, the firm owed the employers social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,880 of accrued wages. On December 31, 2019, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,880 of accrued wages. Required: Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. Enter the adjustments above in the Adjustments section of the worksheet. Complete the worksheet. Analyze: By what amount were the assets of the business affected by adjustments?