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?

Federal Unemployment Tax Payable State Unemployment Tax Payable