Problem 12.4A Recording adjustments and completing the worksheet. LO 12-1, 12-2, 12-3,12-4 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 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 s 6,100 Dr. 3,000 Dr. 56 Cr. 11,700 Dr 1,240 Dr. 1,080 Dr 8,340 Dr 1,540 Cr. 1,840 Dr 320 Cr 2,665 Cr 470 Cr 94 Cr. 27,617 Cr 20,400 Dr 92,048 Cr 1,140 Dr. 47,600 Dr 470 Cr 6,400 Dr 630 Dr. 14,500 Dr 1,310 Dr ADJUSTMENTS a.-b. Merchandise inventory on December 31, 2019, is $12,721 c. During 2019, the firm had net credit sales of $39,000; the firm estimates that 0.5 percent of these sales will result in uncollectible accounts d. On December 31, 2019, an inventory of the supplies showed that items costing $295 were on hand. e. On October 1, 2019, the firm signed a six-month advertising contract for $1,080 with a local newspaper and paid the full amount in advance. life of five years and a salvage value of $640. life of five years and a salvage value of $240. f. On January 2, 2018, the firm purchased store equipment for $8,340. At that time, the equipment was estimated to have a useful g. On January 2, 2018, the firm purchased office equipment for $1,840. At that time, the equipment was estimated to have a useful h. On December 31, 2019, the firm owed salaries of $1,870 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 $1,870 of accrued wages. .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 $1,870 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? Trial Balance Adjustments Adjusted Trial Balance Credit Income Statement Balance Sheet Account Name Debit Credit Debit Credit Debit Debit Credit Debit Credit Cash Allowance for Doubtful Accounts Merchandise Inventory Prepaid Advertising Store Equipment Accumulated Depreciation Store Equipment Office Equipment Accumulated Depreciati 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 e Equipment Sales Returns and Allowances Purchases Purchases Retuns 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 Net Income By what amount were the assets of the business affected by adjustments? Total assets by