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	$	4,800		Dr.
Accounts Receivable		1,700		Dr.
Allowance for Doubtful Accounts		43		Cr.
Merchandise Inventory		10,400		Dr.
Supplies		1,110		Dr.
Prepaid Advertising		1,080		Dr.
Store Equipment		7,560		Dr.
Accumulated DepreciationStore Equipment		1,410		Cr.
Office Equipment		1,060		Dr.
Accumulated DepreciationOffice Equipment		190		Cr.
Accounts Payable		2,535		Cr.
Social Security Tax Payable		340		Cr.
Medicare Tax Payable		79		Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Beth Argo, Capital		21,015		Cr.
Beth Argo, Drawing		19,100		Dr.
Sales		85,548		Cr.
Sales Returns and Allowances		1,010		Dr.
Purchases		43,700		Dr.
Purchases Returns and Allowances		340		Cr.
Rent Expense		5,100		Dr.
Telephone Expense		500		Dr.
Salaries Expense		13,200		Dr.
Payroll Taxes Expense		1,180		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 $11,421.

During 2019, the firm had net credit sales of $26,000; the firm estimates that 0.5 percent of these sales will result in uncollectible accounts.

On December 31, 2019, an inventory of the supplies showed that items costing $230 were on hand.

On October 1, 2019, the firm signed a six-month advertising contract for $1,080 with a local newspaper and paid the full amount in advance.

On January 2, 2018, the firm purchased store equipment for $7,560. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $510.

On January 2, 2018, the firm purchased office equipment for $1,060. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $110.

On December 31, 2019, the firm owed salaries of $1,740 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 $1,740 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 $1,740 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?

Worksheet

Analyze

Complete the worksheet. (Enter both the debit and credit effects wherever required. Round your intermediate calculations and final answers to 2 decimal places.)

The Green Thumb Gardener
Worksheet
Year Ended December 31, 2019
	Trial Balance		Adjustments		Adjusted Trial Balance		Income Statement		Balance Sheet
Account Name	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash
Accounts Receivable
Allowance for Doubtful Accounts
Merchandise Inventory
Supplies
Prepaid Advertising
Store Equipment
Accumulated DepreciationStore Equipment
Office Equipment
Accumulated DepreciationOffice Equipment
Accounts Payable
Social Security Tax Payable
Medicare Tax Payable
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Beth Argo, Capital
Beth Argo, Drawing
Sales
Sales Returns and Allowances
Purchases
Purchases Returns and Allowances
Rent Expense
Telephone Expense
Salaries Expense
Payroll Taxes Expense
Income Summary
Supplies Expense
Advertising Expense
Depreciation ExpenseStore Equipment
Depreciation ExpenseOffice Equipment
Uncollectible Accounts Expense
Totals
Net Income

Analyze

By what amount were the assets of the business affected by adjustments?

Total assets

by