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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

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 $ 5,400 Dr.
Accounts Receivable 2,300 Dr.
Allowance for Doubtful Accounts 49 Cr.
Merchandise Inventory 11,000 Dr.
Supplies 1,170 Dr.
Prepaid Advertising 1,080 Dr.
Store Equipment 7,920 Dr.
Accumulated DepreciationStore Equipment 1,470 Cr.
Office Equipment 1,420 Dr.
Accumulated DepreciationOffice Equipment 250 Cr.
Accounts Payable 2,595 Cr.
Social Security Tax Payable 400 Cr.
Medicare Tax Payable 85 Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Beth Argo, Capital 24,063 Cr.
Beth Argo, Drawing 19,700 Dr.
Sales 88,548 Cr.
Sales Returns and Allowances 1,070 Dr.
Purchases 45,500 Dr.
Purchases Returns and Allowances 400 Cr.
Rent Expense 5,700 Dr.
Telephone Expense 560 Dr.
Salaries Expense 13,800 Dr.
Payroll Taxes Expense 1,240 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 $12,021.

During 2019, the firm had net credit sales of $32,000; 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 $260 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 $7,920. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $570.

On January 2, 2018, the firm purchased office equipment for $1,420. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $170.

On December 31, 2019, the firm owed salaries of $1,800 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 $1,800 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 $1,800 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

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