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The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 3 1 , 2 0 X 1 ,

The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31,20X1, 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 DepreciationStore Equipment 1,490 Cr.
Office Equipment 1,540 Dr.
Accumulated DepreciationOffice 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 ExpenseStore Equipment
Depreciation ExpenseOffice Equipment
Uncollectible Accounts Expense
ADJUSTMENTS
a.b. Merchandise inventory on December 31,20X1, is $12,221.
During 20X1, the firm had net credit sales of $34,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts.
On December 31,20X1, an inventory of the supplies showed that items costing $270 were on hand.
On October 1,20X1, the firm signed a six-month advertising contract for $900 with a local newspaper and paid the full amount in advance.
On January 2,20X0, 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 2,20X0, 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 31,20X1, the firm owed salaries of $1,820 that will not be paid until 20X2.
On December 31,20X1, the firm owed the employers social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,820 of accrued wages.
On December 31,20X1, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 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 31,20X1.
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?
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