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 $ $5,300$ Debit

Accounts Receivable $2,200$ Debit

Allowance for Doubtful Accounts $48$ Credit

Merchandise Inventory $10,900$ Debit

Supplies $1,160$ Debit

Prepaid Advertising $900$ Debit

Store Equipment $7,860$ Debit

Accumulated Depreciation$$Store Equipment $1,460$ Credit

Office Equipment $1,360$ Debit

Accumulated Depreciation$$Office Equipment $240$ Credit

Accounts Payable $2,585$ Credit

Social Security Tax Payable $390$ Credit

Medicare Tax Payable $84$ Credit

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital $23,375$ Credit

Beth Argo, Drawing $19,600$ Debit

Sales $88,048$ Credit

Sales Returns and Allowances $1,060$ Debit

Purchases $45,200$ Debit

Purchases Returns and Allowances $390$ Credit

Rent Expense $5,600$ Debit

Telephone Expense $550$ Debit

Salaries Expense $13,700$ Debit

Payroll Taxes Expense $1,230$ Debit

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 $$11,921.$

During $20$X$1,$ the firm had net credit sales of $$31,000$; 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 $$255$ 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 $$7,860.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$560.$

On January $2,20$X$0,$ the firm purchased office equipment for $$1,360.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$160.$

On December $31,20$X$1,$ the firm owed salaries of $$1,790$ that will not be paid until $20$X$2.$

On December $31,20$X$1,$ the firm owed the employer$$s social security tax $($assume $6\mathrm{.}2$ percent$)$ and Medicare tax $($assume $1\mathrm{.}45$ percent$)$ on the entire $$1,790$ 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 $$1,790$ 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?