In: Accounting
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.
Required:
Analyze:
By what amount were the assets of the business affected by
adjustments?
The Green Thumb Gardener | ||||||||||
Worksheet | ||||||||||
Year Ended December 31, 2019 | ||||||||||
Account Titles | Unadjusted Trial Balance | Adjustments | Adjusted Trial Balance | Income Statement | Balance Sheet | |||||
Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | Debit | Credit | |
Cash | 6200 | 6200 | 6200 | |||||||
Accounts receivable | 3100 | 3100 | 3100 | |||||||
Allowance for doubtful accounts | 57 | 280 | 337 | 337 | ||||||
Merchandise inventory | 11800 | 12821 | 11800 | 12821 | 12821 | |||||
Supplies | 1250 | 950 | 300 | 300 | ||||||
Prepaid advertising | 900 | 450 | 450 | 450 | ||||||
Store equipment | 8400 | 8400 | 8400 | |||||||
Accumulated depreciation-store equipment | 1550 | 1550 | 3100 | 3100 | ||||||
Office equipment | 1900 | 1900 | 1900 | |||||||
Accumulated depreciation-office equipment | 330 | 330 | 660 | 660 | ||||||
Accounts payable | 2675 | 2675 | 2675 | |||||||
Social security tax payable | 480 | 116.56 | 596.56 | 596.56 | ||||||
Medicare tax payable | 93 | 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 | 1880 | 1880 | 1880 | |||||||
Beth Argo, capital | 27947 | 27947 | 27947 | |||||||
Beth Argo, drawing | 20500 | 20500 | 20500 | |||||||
Sales | 92548 | 92548 | 92548 | |||||||
Sales returns and allowances | 1150 | 1150 | 1150 | |||||||
Purchases | 47900 | 47900 | 47900 | |||||||
Purchase returns and allowances | 480 | 480 | 480 | |||||||
Rent expense | 6500 | 6500 | 6500 | |||||||
Telephone expense | 640 | 640 | 640 | |||||||
Salaries expense | 14600 | 1880 | 16480 | 16480 | ||||||
Payroll taxes expense | 1320 | 256.62 | 1576.62 | 1576.62 | ||||||
Income summary | 11800 | 12821 | 11800 | 12821 | 11800 | 12821 | ||||
Supplies expense | 950 | 950 | 950 | |||||||
Advertising expense | 450 | 450 | 450 | |||||||
Depreciation expense-store equipment | 1550 | 1550 | 1550 | |||||||
Depreciation expense-office equipment | 330 | 330 | 330 | |||||||
Uncollectible accounts expense | 280 | 280 | 280 | |||||||
Totals | 126160.00 | 126160.00 | 30317.62 | 30317.62 | 143277.62 | 143277.62 | 89606.62 | 105849.00 | 53671.00 | 37428.62 |
Net income | 16242.38 | 16242.38 | ||||||||
Totals | 105849.00 | 105849.00 | 53671.00 | 53671.00 |
Analyze:
Total assets decreased by $2539
$12821 - ($11800 + $950 + $450 + $280 + $1550 + $330) = -$2539