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?