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	$	5,200		Dr.
Accounts Receivable		2,100		Dr.
Allowance for Doubtful Accounts		47		Cr.
Merchandise Inventory		10,800		Dr.
Supplies		1,150		Dr.
Prepaid Advertising		960		Dr.
Store Equipment		7,800		Dr.
Accumulated DepreciationStore Equipment		1,450		Cr.
Office Equipment		1,300		Dr.
Accumulated DepreciationOffice Equipment		230		Cr.
Accounts Payable		2,575		Cr.
Social Security Tax Payable		380		Cr.
Medicare Tax Payable		83		Cr.
Federal Unemployment Tax Payable
State Unemployment Tax Payable
Salaries Payable
Beth Argo, Capital		22,927		Cr.
Beth Argo, Drawing		19,500		Dr.
Sales		87,548		Cr.
Sales Returns and Allowances		1,050		Dr.
Purchases		44,900		Dr.
Purchases Returns and Allowances		380		Cr.
Rent Expense		5,500		Dr.
Telephone Expense		540		Dr.
Salaries Expense		13,600		Dr.
Payroll Taxes Expense		1,220		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 $11,821.

During 2019, the firm had net credit sales of $30,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts.

On December 31, 2019, an inventory of the supplies showed that items costing $250 were on hand.

On October 1, 2019, the firm signed a six-month advertising contract for $960 with a local newspaper and paid the full amount in advance.

On January 2, 2018, the firm purchased store equipment for $7,800. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $550.

On January 2, 2018, the firm purchased office equipment for $1,300. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $150.

On December 31, 2019, the firm owed salaries of $1,780 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 $1,780 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 $1,780 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?

Complete this question by entering your answers in the tabs below.

Worksheet

Analyze

Complete the worksheet. (Enter both the debit and credit effects wherever required. Round your intermediate calculations and final answers to 2 decimal places.)

The Green Thumb Gardener

Worksheet

Year Ended December 31, 2019

Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet

Account Name

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

Accounts Receivable

Allowance for Doubtful Accounts

Merchandise Inventory

Supplies

Prepaid Advertising

Store Equipment

Accumulated DepreciationStore Equipment

Office Equipment

Accumulated DepreciationOffice 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 Returns and Allowances

Purchases

Purchases Returns and Allowances

Rent Expense

Telephone Expense

Salaries Expense

Payroll Taxes Expense

Income Summary

Supplies Expense

Advertising Expense

Depreciation ExpenseStore Equipment

Depreciation ExpenseOffice Equipment

Uncollectible Accounts Expense

Totals

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Net Income

$0.00

$0.00

$0.00

$0.00

+

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