Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The next picture continues the second one contained the accounts and balances that appear below. $ 6,700 Dr. 3,600 Dr. 62 Cr. 12,300 Dr. 1,300

image text in transcribedimage text in transcribedimage text in transcribedThe next picture continues the second one

image text in transcribedimage text in transcribed

contained the accounts and balances that appear below. $ 6,700 Dr. 3,600 Dr. 62 Cr. 12,300 Dr. 1,300 Dr. 1,080 Dr. 8,700 Dr. 1,600 Cr. 2,200 Dr. 380 Cr. 2,725 Cr. 530 Cr. 88 Cr. ACCOUNTS AND BALANCES 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 Returns and Allowances Purchases Purchases Returns and Allowances Rent Expense Telephone Expense Salaries Expense Payroll Taxes Expense Income Summary Supplies Expense Advertising Expense Depreciation Expense-Store Equipment Depreciation Expense-Office Equipment Uncollectible Accounts Expense 30,677 Cr. 21,000 Dr. 95,048 Cr. 1,200 Dr. 49,400 Dr. 530 Cr. 7,000 Dr. 690 Dr. 15,100 Dr. 1,370 Dr. uncollectible Accounts Expense ADJUSTMENTS a. b. Merchandise inventory on December 31, 2019, is $13,321. c. During 2019, the firm had net credit sales of $45,000; the firm estimates that 0.5 percent of these sales will result in uncollectible accounts. d. On December 31, 2019, an inventory of the supplies showed that items costing $325 were on hand. e. On October 1, 2019, the firm signed a six-month advertising contract for $1,080 with a local newspaper and paid the full amount in advance. f. On January 2, 2018, 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. g. On January 2, 2018, 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. h. On December 31, 2019, the firm owed salaries of $1,930 that will not be paid until 2020. i. On December 31, 2019, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,930 of accrued wages. j. 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 $1,930 of accrued wages. Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. 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. 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 Adjustments Adjusted Trial Balance Debit Credit Debit Credit Trial Balance Income Statement Balance Sheet Account Name 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 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 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 Expense-Store Equipment Depreciation Expense-Office Equipment Uncollectible Accounts Expense Totals Net Income Required: 1. Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 2019. 2. Enter the adjustments above in the Adjustments section of the worksheet. 3. 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 By what amount were the assets of the business affected by adjustments? Total assets by

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Objective Questions And Explanations

Authors: Irvin N. Gleim

6th Edition

0917537718, 978-0917537714

More Books

Students also viewed these Accounting questions