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 $ 5,300 Dr Accounts Receivable 2,200 Dr Allowance for Doubtful Accounts 48 Cr Merchandise Inventory 10,900 Dr Supplies 1,160 Dr Prepaid Advertising 900 Dr Store Equipment 7,860 Dr Accumulated DepreciationStore Equipment 1,460 Cr Office Equipment 1,360 Dr Accumulated DepreciationOffice Equipment 240 Cr Accounts Payable 2,585 Cr Social Security Tax Payable 390 Cr Medicare Tax Payable 84 Cr Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital 23,375 Cr Beth Argo, Drawing 19,600 Dr Sales 88,048 Cr Sales Returns and Allowances 1,060 Dr Purchases 45,200 Dr Purchases Returns and Allowances 390 Cr Rent Expense 5,600 Dr Telephone Expense 550 Dr Salaries Expense 13,700 Dr Payroll Taxes Expense 1,230 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 $11,921 During 2019, the firm had net credit sales of $31,000 the firm estimates that 0 7 percent of these sales will result in uncollectible accounts On December 31, 2019, an inventory of the supplies showed that items costing $255 were on hand On October 1, 2019, the firm signed a six month advertising contract for $900 with a local newspaper and paid the full amount in advance On January 2, 2018, 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, 2018, 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, 2019, the firm owed salaries of $1,790 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 $1,790 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 $1,790 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 Year Ended December 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Credit Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Debit Credit Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Advertising Store Equipment Accumulated Depreciation Store Equipment Office Equipment Accumulated Depreciation Office Equipment Accounts Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital Beth Argo, Drawing Sales Sales Retums and Allowances Purchases Purchases Returns and Allowances

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 01, 2024

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	$	5,300	Dr.
Accounts Receivable		2,200	Dr.
Allowance for Doubtful Accounts		48	Cr.
Merchandise Inventory		10,900	Dr.
Supplies		1,160	Dr.
Prepaid Advertising		900	Dr.
Store Equipment		7,860	Dr.
Accumulated DepreciationStore Equipment		1,460	Cr.
Office Equipment		1,360	Dr.
Accumulated DepreciationOffice Equipment		240	Cr.
Accounts Payable		2,585	Cr.
Social Security Tax Payable		390	Cr.
Medicare Tax Payable		84	Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Beth Argo, Capital		23,375	Cr.
Beth Argo, Drawing		19,600	Dr.
Sales		88,048	Cr.
Sales Returns and Allowances		1,060	Dr.
Purchases		45,200	Dr.
Purchases Returns and Allowances		390	Cr.
Rent Expense		5,600	Dr.
Telephone Expense		550	Dr.
Salaries Expense		13,700	Dr.
Payroll Taxes Expense		1,230	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 $11,921. During 2019, the firm had net credit sales of $31,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts. On December 31, 2019, an inventory of the supplies showed that items costing $255 were on hand. On October 1, 2019, the firm signed a six-month advertising contract for $900 with a local newspaper and paid the full amount in advance. On January 2, 2018, 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, 2018, 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, 2019, the firm owed salaries of $1,790 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 $1,790 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 $1,790 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 Year Ended December 31, 2019 Trial Balance Adjustments Adjusted Trial Balance Credit Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Debit Credit Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Supplies Prepaid Advertising Store Equipment Accumulated Depreciation-Store Equipment Office Equipment Accumulated Depreciation-Office Equipment Accounts Payable Social Security Tax Payable Medicare Tax Payable Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital Beth Argo, Drawing Sales Sales Retums and Allowances Purchases Purchases Returns and Allowances