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The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December $31,20$X$1,$ the firm's general ledger contained the accounts and balances that appear below.

ACCOUNTS AND BALANCES

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

Depreciation Expense$$Store Equipment

Depreciation Expense$$Office Equipment

Uncollectible Accounts Expense

ADJUSTMENTS

a$.$b$.$ Merchandise inventory on December $31,20$X$1,$ is $$13,321.$

During $20$X$1,$ the firm had net credit sales of $$45,000$; the firm estimates that $0\mathrm{.}5$ percent of these sales will result in uncollectible accounts.

On December $31,20$X$1,$ an inventory of the supplies showed that items costing $$325$ were on hand.

On October $1,20$X$1,$ the firm signed a six$-$month advertising contract for $$1,080$ with a local newspaper and paid the full amount in advance.

On January $2,20$X$0,$ 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 $2,20$X$0,$ 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 $31,20$X$1,$ the firm owed salaries of $$1,930$ that will not be paid until $20$X$2.$

On December $31,20$X$1,$ the firm owed the employer$$s social security tax $($assume $6\mathrm{.}2$ percent$)$ and Medicare tax $($assume $1\mathrm{.}45$ percent$)$ on the entire $$1,930$ of accrued wages.

On December $31,20$X$1,$ the firm owed federal unemployment tax $($assume $0\mathrm{.}6$ percent$)$ and state unemployment tax $($assume $5\mathrm{.}4$ 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 $31,20$X$1.$

Enter the adjustments above in the Adjustments section of the worksheet.

Complete the worksheet. Complete this question by entering the answers in the table of trail balace, Adjustments, Adjusted Trail Balance, Income Statement, Balance sheet.

Analyze:

By what amount were the assets of the business affected by adjustments?

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