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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 $ 5,200 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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