The green thumb gardener worksheet answers

Accounts And Balance

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

$

6,200

Dr.

Accounts Receivable

3,100

Dr.

Allowance for Doubtful Accounts

57

Cr.

Merchandise Inventory

11,800

Dr.

Supplies

1,250

Dr.

Prepaid Advertising

900

Dr.

Store Equipment

8,400

Dr.

Accumulated Depreciation—Store Equipment

1,550

Cr.

Office Equipment

1,900

Dr.

Accumulated Depreciation—Office Equipment

330

Cr.

Accounts Payable

2,675

Cr.

Social Security Tax Payable

480

Cr.

Medicare Tax Payable

93

Cr.

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital

27,947

Cr.

Beth Argo, Drawing

20,500

Dr.

Sales

92,548

Cr.

Sales Returns and Allowances

1,150

Dr.

Purchases

47,900

Dr.

Purchases Returns and Allowances

480

Cr.

Rent Expense

6,500

Dr.

Telephone Expense

640

Dr.

Salaries Expense

14,600

Dr.

Payroll Taxes Expense

1,320

Dr.

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, 2019, is $12,821.

c. During 2019, the firm had net credit sales of $40,000; the firm estimates that 0.7 percent of these sales will result in uncollectible accounts.

d. On December 31, 2019, an inventory of the supplies showed that items costing $300 were on hand.

e. 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.

f. On January 2, 2018, the firm purchased store equipment for $8,400. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $650.

g. On January 2, 2018, the firm purchased office equipment for $1,900. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $250.

h. On December 31, 2019, the firm owed salaries of $1,880 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 $1,880 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 $1,880 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.

· Worksheet

· Analyze

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

Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet

Account Name

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

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

Totals

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Net Income

$0.00

$0.00

$0.00

$0.00

· Worksheet

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

$

6,200

Dr.

Accounts Receivable

3,100

Dr.

Allowance for Doubtful Accounts

57

Cr.

Merchandise Inventory

11,800

Dr.

Supplies

1,250

Dr.

Prepaid Advertising

900

Dr.

Store Equipment

8,400

Dr.

Accumulated Depreciation

—

Store Equipment

1,550

Cr.

Office Equipment

1,900

Dr.

Accumulated Depreciation

—

Office Equipment

330

Cr.

Accounts Payable

2,675

Cr.

Social Security Tax Payable

480

Cr.

Medicare Tax Payable

93

Cr.

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital

27,947

Cr.

Beth Argo, Drawing

20,500

Dr.

Sales

92,548

Cr.

Sales Returns and Allowances

1,150

Dr.

Purchases

47,900

Dr.

Purchases Returns and Allowances

480

Cr.

Rent Expense

6,500

Dr.

Telephone Expense

640

Dr.

Salaries Expense

14,600

Dr.

Payroll Taxes Expense

1,320

Dr.

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, 2019, is $12,821.

c.

During

2019,

the

firm

had

net

credit

sales

of

$40,000;

the

firm

estimates

that

0.7

percent

of

these

sales

will

result

in

uncollectible

accounts.

d.

On

December

31,

2019,

an

inventory

of

the

supplies

show

ed

that

items

costing

$300

were

on

hand.

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 $ 6,200 Dr.

Accounts Receivable 3,100 Dr.

Allowance for Doubtful Accounts 57 Cr.

Merchandise Inventory 11,800 Dr.

Supplies 1,250 Dr.

Prepaid Advertising 900 Dr.

Store Equipment 8,400 Dr.

Accumulated Depreciation—Store Equipment 1,550 Cr.

Office Equipment 1,900 Dr.

Accumulated Depreciation—Office Equipment 330 Cr.

Accounts Payable 2,675 Cr.

Social Security Tax Payable 480 Cr.

Medicare Tax Payable 93 Cr.

Federal Unemployment Tax Payable

State Unemployment Tax Payable

Salaries Payable

Beth Argo, Capital 27,947 Cr.

Beth Argo, Drawing 20,500 Dr.

Sales 92,548 Cr.

Sales Returns and Allowances 1,150 Dr.

Purchases 47,900 Dr.

Purchases Returns and Allowances 480 Cr.

Rent Expense 6,500 Dr.

Telephone Expense 640 Dr.

Salaries Expense 14,600 Dr.

Payroll Taxes Expense 1,320 Dr.

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, 2019, is $12,821.

c. During 2019, the firm had net credit sales of $40,000; the firm estimates that

0.7 percent of these sales will result in uncollectible accounts.

d. On December 31, 2019, an inventory of the supplies showed that items costing