The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On...
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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 Accounts Receivable. Allowance for Doubtful Accounts. Merchandise Inventory Supplies Supp Prepaid Advertising Store Equipment Accumulated Depreciation-Store Equipment Offic 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 $ 6,200 Dr. 3,100 Dr. 57 Cr. 11,800 Dr. 1,250 Dr. 900 Dr. 8,400 Dr. 1,550 Cr. 1,900 Dr. 330 Cr. 2,675 Cr. 480 Cr. 93 Cr. 27,947 Cr. 20,500 Dr. 92,548 Cr. 1,150 Dr. 47,900 Dr. 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. 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 Accounts Receivable. Allowance for Doubtful Accounts. Merchandise Inventory Supplies Supp Prepaid Advertising Store Equipment Accumulated Depreciation-Store Equipment Offic 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 $ 6,200 Dr. 3,100 Dr. 57 Cr. 11,800 Dr. 1,250 Dr. 900 Dr. 8,400 Dr. 1,550 Cr. 1,900 Dr. 330 Cr. 2,675 Cr. 480 Cr. 93 Cr. 27,947 Cr. 20,500 Dr. 92,548 Cr. 1,150 Dr. 47,900 Dr. 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.
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ANSWER Account Name Cash Accounts receivable Allowance for doubtful accounts Merchandise inventory S... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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