The Green Thumb Garden contained the accounts and balances that appear below ner
ID: 2396885 • Letter: T
Question
The Green Thumb Garden contained the accounts and balances that appear below ner is a retail store that seils plants, soil, and decorative pots. On December 31, 2019, the firm's general ledger 6,200 Dr Accounts Receivable AlLovance for Doubtful Aooounte Merchandise Inventory Supplies Prepaid Advertising Btore Eqguipment Aceumalated Depreeiation-gtore Equipment Office Equipment ccumalated Depreeiation-otfiee Equipment ccoants Payable Social Security Tax Payable Nedicare Tax Payable Tederal Unanploynent Tax Payable State Unemploynent Tax Payable Salaries Payable Beth Argo, Capital Beth Argo, Drsving 3,100 De 11,800 Dr. 1,250 Dr 00 Dr. 8,400 Dr 1,550 cr. 330 Ce. 2,675 Ce. 93 Cr 27,947 C 20,500 Dr 92,548 Cr. 47,900 De. 6,500 De 14,600 Dr, 1,150 Dr. Parchases 480 Cr. Telephone Expense Payroll Taxes Expense Incone 8ummary Supplies Expense Advertiaing Expense Depreeiation Expense-Store Equipment Depreciation Expenae-Office Equippent 1,320 Dr, Unoolleotible hecounts Expense ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $12,821 c During 2019, the firm had net credit sales of $40,000; the firm estmates that 07 percent of these sales will result in uncollectible accounts d. On December 31, 2019, an inventory of the supplies showed that tems costing $300 were on hand. e. On October 1, 2019, the firm signed a six-month advertising contract for $900 wilth a local newspaper and paid the full amount in f. On January 2, 2018, the firm purchased store equipment for $8,400. At that time, the equipment was estimated to have a useful g. On January 2, 2018, the firm purchased office equipment for $1.900. Ai that time,the equlipment was estimated to have a useful h. On December 31, 2019, the firm owed salaries of $1,880 that will not be paid until 2020 advance. life of five years and a salvage value of $650 life of five years and a salvage value of $250 percent on the entire $1,880 of accrued wages. percent) on the entire $1,880 of accrued wages l. On December 31, 2019, the firm owed the employer's social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 J.On December 31, 2019, the firm owed federal unemployment tax (assume 06 percent and state unemployment tax (assume 54 Required: 1 Prepare the Trial Balance section of a 10-column worksheet The worksheet covers the year ended December 31, 20n9 2. Enter the adjustments above in the Adjustments section of the worksheet 3. Complete the worksheet Analyze: Dy what amount were the assets of the business affected by adjustments? Complete this question by entering your answers in the tabs below. AnalyzeExplanation / Answer
GREEN THUMB GARDNER Work Sheet For Year Ended Dec 31, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance Income Summary Balance Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Balance Sheet Accounts: Cash 6,200.00 6,200.00 6,200.00 Accounts Receivable 3,100.00 3,100.00 3,100.00 Allowance for Doubtful Accounts 57.00 223.00 280.00 280.00 Merchandise Inventory 11,800.00 12,821.00 11,800.00 12,821.00 12,821.00 Supplies 1,250.00 950.00 300.00 300.00 Prepaid Advertising 900.00 450.00 450.00 450.00 Store Equipment 8,400.00 8,400.00 8,400.00 Accumulated Dep. - Store Equip. 1,550.00 1,550.00 3,100.00 3,100.00 Office Equipment 1,900.00 1,900.00 1,900.00 Accumulated Dep. - Office Equip. 330.00 330.00 660.00 660.00 Accounts Payable 2,675.00 2,675.00 2,675.00 Social Security Tax Payable 480.00 116.56 596.56 596.56 Medicare Tax Payable 93.00 27.26 120.26 120.26 Federal Unemployment Tax Payable - 11.28 11.28 11.28 State Unemployment Tax Payable - 101.52 101.52 101.52 Salaries Payable - 1,880.00 1,880.00 1,880.00 Beth Argo, Capital 27,947.00 27,947.00 27,947.00 Beth Argo, Drawing 20,500.00 20,500.00 20,500.00 Sales 92,548.00 92,548.00 92,548.00 Sales Returns & Allowances 1,150.00 1,150.00 1,150.00 Purchases 47,900.00 47,900.00 47,900.00 Purchases Returns & Allowances 480.00 480.00 480.00 Rent Expense 6,500.00 6,500.00 6,500.00 Telephone Expenses 640.00 640.00 640.00 Salaries Expense 14,600.00 1,880.00 16,480.00 16,480.00 Payroll Taxes Expenses 1,320.00 256.62 1,576.62 1,576.62 Income Summary - 11,800.00 12,821.00 1,021.00 1,021.00 Supplies Expenses - 950.00 950.00 950.00 Advertising Expenses - 450.00 450.00 450.00 Depreciation Expense - Store Equipment 1,550.00 1,550.00 1,550.00 Depreciation Expense - Office Equipment 330.00 330.00 330.00 Uncollectible Account Expense 223.00 223.00 223.00 Total 126,160.00 126,160.00 30,260.62 30,260.62 131,420.62 131,420.62 77,749.62 94,049.00 53,671.00 37,371.62 Net Income 16,299.38 16,299.38 Totals 94,049.00 94,049.00 53,671.00 53,671.00 Uncollectible Account Expense = ($40,000 X 0.7%) - $57 = $223 Supplies Expenses = $1,250 - $300 = $950 Advertising Expenses = ($900 / 6 Months) X 3 Months = $450 Depreciation Expense - Store Equipment = ($8,400 - $650) / 5 Years = $1,550 Depreciation Expense - Office Equipment = ($1,900 - $250) / 5 Years = $330 Interest Expense = $32,100 X 10% X 4/12 = $1,070 Social Security Tax Payable = $1,880 X 6.2% = $116.56 Medicare Tax Payable = $1,880 X 1.45% = $27.26 Federal Unemployment Tax Payable = $1,880 x 0.6% = $11.28 State Unemployment Tax Payable = $1,880 x 5.40% = $101.52
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