The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December $31,20$X$1,$ the firm's general ledger contained the accounts and balances that appear below.

ACCOUNTS AND BALANCES

Cash $ $5,600$ Dr$.$

Accounts Receivable $2,500$ Dr$.$

Allowance for Doubtful Accounts $51$ Cr$.$

Merchandise Inventory $11,200$ Dr$.$

Supplies $1,190$ Dr$.$

Prepaid Advertising $900$ Dr$.$

Store Equipment $8,040$ Dr$.$

Accumulated Depreciation$$Store Equipment $1,490$ Cr$.$

Office Equipment $1,540$ Dr$.$

Accumulated Depreciation$$Office Equipment $270$ Cr$.$

Accounts Payable $2,615$ Cr$.$

Social Security Tax Payable $420$ Cr$.$

Medicare Tax Payable $87$ Cr$.$

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital $24,899$ Cr$.$

Beth Argo, Drawing $19,900$ Dr$.$

Sales $89,548$ Cr$.$

Sales Returns and Allowances $1,090$ Dr$.$

Purchases $46,100$ Dr$.$

Purchases Returns and Allowances $420$ Cr$.$

Rent Expense $5,900$ Dr$.$

Telephone Expense $580$ Dr$.$

Salaries Expense $14,000$ Dr$.$

Payroll Taxes Expense $1,260$ Dr$.$

Income Summary

Supplies Expense

Advertising Expense

Depreciation Expense$$Store Equipment

Depreciation Expense$$Office Equipment

Uncollectible Accounts Expense

ADJUSTMENTS

a$.$b$.$ Merchandise inventory on December $31,20$X$1,$ is $$12,221.$

During $20$X$1,$ the firm had net credit sales of $$34,000$; the firm estimates that $0\mathrm{.}7$ percent of these sales will result in uncollectible accounts.

On December $31,20$X$1,$ an inventory of the supplies showed that items costing $$270$ were on hand.

On October $1,20$X$1,$ the firm signed a six$-$month advertising contract for $$900$ with a local newspaper and paid the full amount in advance.

On January $2,20$X$0,$ the firm purchased store equipment for $$8,040.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$590.$

On January $2,20$X$0,$ the firm purchased office equipment for $$1,540.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$190.$

On December $31,20$X$1,$ the firm owed salaries of $$1,820$ that will not be paid until $20$X$2.$

On December $31,20$X$1,$ the firm owed the employer$$s social security tax $($assume $6\mathrm{.}2$ percent$)$ and Medicare tax $($assume $1\mathrm{.}45$ percent$)$ on the entire $$1,820$ of accrued wages.

On December $31,20$X$1,$ the firm owed federal unemployment tax $($assume $0\mathrm{.}6$ percent$)$ and state unemployment tax $($assume $5\mathrm{.}4$ percent$)$ on the entire $$1,820$ of accrued wages.

Required:

Prepare the Trial Balance section of a $10-$column worksheet. The worksheet covers the year ended December $31,20$X$1.$

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?