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 $ $6,700$ Dr$.$

Accounts Receivable $3,600$ Dr$.$

Allowance for Doubtful Accounts $62$ Cr$.$

Merchandise Inventory $12,300$ Dr$.$

Supplies $1,300$ Dr$.$

Prepaid Advertising $1,080$ Dr$.$

Store Equipment $8,700$ Dr$.$

Accumulated Depreciation$$Store Equipment $1,600$ Cr$.$

Office Equipment $2,200$ Dr$.$

Accumulated Depreciation$$Office Equipment $380$ Cr$.$

Accounts Payable $2,725$ Cr$.$

Social Security Tax Payable $530$ Cr$.$

Medicare Tax Payable $88$ Cr$.$

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital $30,677$ Cr$.$

Beth Argo, Drawing $21,000$ Dr$.$

Sales $95,048$ Cr$.$

Sales Returns and Allowances $1,200$ Dr$.$

Purchases $49,400$ Dr$.$

Purchases Returns and Allowances $530$ Cr$.$

Rent Expense $7,000$ Dr$.$

Telephone Expense $690$ Dr$.$

Salaries Expense $15,100$ Dr$.$

Payroll Taxes Expense $1,370$ 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 $$13,321.$

During $20$X$1,$ the firm had net credit sales of $$45,000$; the firm estimates that $0\mathrm{.}5$ percent of these sales will result in uncollectible accounts.

On December $31,20$X$1,$ an inventory of the supplies showed that items costing $$325$ were on hand.

On October $1,20$X$1,$ the firm signed a six$-$month advertising contract for $$1,080$ with a local newspaper and paid the full amount in advance.

On January $2,20$X$0,$ the firm purchased store equipment for $$8,700.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$700.$

On January $2,20$X$0,$ the firm purchased office equipment for $$2,200.$ At that time, the equipment was estimated to have a useful life of five years and a salvage value of $$300.$

On December $31,20$X$1,$ the firm owed salaries of $$1,930$ that will not be paid until $20$X$2.$

On December $31,20$X$1,$ the firm owed the employer$$s social security tax $($assume $6\mathrm{.}2$ percent$)$ and Medicare tax $($assume $1\mathrm{.}45$ percent$)$ on the entire $$1,930$ 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 $$1,930$ 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?