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The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 20X1, the firm's general ledger contained the accounts and balances that appear below.

ADJUSTMENTS

a.b. Merchandise inventory on December 31, 20X1, is $13,321.

During 20X1, the firm had net credit sales of $45,000; the firm estimates that 0.5 percent of these sales will result in uncollectible accounts. On December 31, 20X1, an inventory of the supplies showed that items costing $325 were on hand. On October 1, 20X1, the firm signed a six-month advertising contract for $1,080 with a local newspaper and paid the full amount in advance. On January 2, 20X0, 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. On January 2, 20X0, 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. On December 31, 20X1, the firm owed salaries of $1,930 that will not be paid until 20X2. On December 31, 20X1, the firm owed the employers social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,930 of accrued wages. On December 31, 20X1, 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: Prepare the Trial Balance section of a 10-column worksheet. The worksheet covers the year ended December 31, 20X1. 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?

ACCOUNTS AND BALANCES \begin{tabular}{lr} Cash & $6,700 Debit \\ Accounts Receivable & 3,600 Debit \\ Allowance for Doubtful Accounts & 62 Credit \\ Merchandise Inventory & 12,300 Debit \\ Supplies & 1,300 Debit \\ Prepaid Advertising & 1,080 Debit \\ Store Equipment & 8,700 Debit \\ Accumulated Depreciation-Store Equipment & 1,600 Credit \\ Office Equipment & 2,200 Debit \\ Accumulated Depreciation-office Equipment & 380 Credit \\ Accounts Payable & 2,725 Credit \\ Social Security Tax Payable & 530 Credit \\ Medicare Tax Payable & 88 Credit \\ Federal Unemployment Tax Payable & \\ State Unemployment Tax Payable & \\ Salaries Payable & \\ Beth Argo, Capital & 30,677 Credit \\ Beth Argo, Drawing & 21,000 Debit \\ Sales & 95,048 Credit \\ Sales Returns and Allowances & 1,200 Debit \\ Purchases & 49,400 Debit \\ Purchases Returns and Allowances & 530 Credit \\ Rent Expense & 7,000 Debit \\ Telephone Expense & 690 Debit \\ Salaries Expense & 15,100 Debit \\ Payroll Taxes Expense & 1,370 Debit \\ Income Summary & \\ Supplies Expense & \\ Advertising Expense & \end{tabular} The Green Thumb Gardener Worksheet \begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{9}{|c|}{ Year Ended December 31, 20X1 } \\ \hline \multirow{2}{*}{ Account Name } & \multicolumn{2}{|c|}{ Trial Balance } & \multicolumn{2}{|c|}{ Adjustments } & \multicolumn{2}{|c|}{ Adjusted Trial Balance } & \multicolumn{2}{|c|}{ Income Statement } \\ \hline & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit \\ \hline \multicolumn{9}{|l|}{ Cash } \\ \hline \multicolumn{9}{|l|}{ Accounts Receivable } \\ \hline \multicolumn{9}{|l|}{ Allowance for Doubtful Accounts } \\ \hline \multicolumn{9}{|l|}{ Merchandise Inventory } \\ \hline \multicolumn{9}{|l|}{ Supplies } \\ \hline \multicolumn{9}{|l|}{ Prepaid Advertising } \\ \hline \multicolumn{9}{|l|}{ Store Equipment } \\ \hline \multicolumn{9}{|c|}{ Accumulated Depreciation-Store Equipment } \\ \hline \multicolumn{9}{|l|}{ Office Equipment } \\ \hline \multicolumn{9}{|c|}{ Accumulated Depreciation-Office Equipment } \\ \hline \multicolumn{9}{|l|}{ Accounts Payable } \\ \hline \multicolumn{9}{|l|}{ Social Security Tax Payable } \\ \hline Medicare Tax Payable & & & & & & & & \\ \hline \end{tabular} The Green Thumb Gardener Worksheet Year Ended December 31, 20X1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{ t Name } & \multicolumn{2}{|c|}{ Trial Balance } & \multicolumn{2}{|c|}{ Adjustments } & \multicolumn{2}{|c|}{ Adjusted Trial Balance } & \multicolumn{2}{|c|}{ Income Statement } & \multicolumn{2}{|c|}{ Balance Sheet } \\ \hline & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit & Debit & Credit \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline \multicolumn{11}{|l|}{ ccounts } \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline \multicolumn{11}{|l|}{ n-Store Equipment } \\ \hline & & & & & & & & & & \\ \hline \multicolumn{11}{|l|}{ n-Office Equipment } \\ \hline & & & & & & & & & & \\ \hline ble & & & & & & & & & & \\ \hline & & & & & & & & & & \\ \hline \end{tabular} Worksheet Analyze Worksheet Analyze Analyze: By what amount were the assets of the business affected by adjustments? Complete this question by entering your answers in the tabs below. By what amount were the assets of the business affected by adjustments

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