Question

The Green Thumb Gardener is a retail store that sells plants, soil, and decorative pots. On December 31, 2016, the firm's general ledger contained the accounts and balances that appear below. ACCOUNTS AND BALANCES Cash $ 5,700 Dr. Accounts Receivable 2,600 Dr. Allowance for Doubtful Accounts 52 Cr. Merchandise Inventory 11,300 Dr. Supplies 1,200 Dr. Prepaid Advertising 960 Dr. Store Equipment 8,100 Dr. Accumulated Depreciation—Store Equipment 1,500 Cr. Office Equipment 1,600 Dr. Accumulated Depreciation—Office Equipment 280 Cr. Accounts Payable 2,625 Cr. Social Security Tax Payable 430 Cr. Medicare Tax Payable 98 Cr. Federal Unemployment Tax Payable State Unemployment Tax Payable Salaries Payable Beth Argo, Capital 25,457 Cr. Beth Argo, Drawing 20,000 Dr. Sales 90,048 Cr. Sales Returns and Allowances 1,100 Dr. Purchases 46,400 Dr. Purchases Returns and Allowances 430 Cr. Rent Expense 6,000 Dr. Telephone Expense 590 Dr. Salaries Expense 14,100 Dr. Payroll Taxes Expense 1,270 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, 2016, is $12,321. c. During 2016, the firm had net credit sales of $35,000; the firm estimates that 0.6 percent of these sales will result in uncollectible accounts. d. On December 31, 2016, an inventory of the supplies showed that items costing $275 were on hand. e. On October 1, 2016, the firm signed a six-month advertising contract for $960 with a local newspaper and paid the full amount in advance. f. On January 2, 2015, the firm purchased store equipment for $8,100. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $600. g. On January 2, 2015, the firm purchased office equipment for $1,600. At that time, the equipment was estimated to have a useful life of five years and a salvage value of $200. h. On December 31, 2016, the firm owed salaries of $1,830 that will not be paid until 2017. i. On December 31, 2016, the firm owed the employer’s social security tax (assume 6.2 percent) and Medicare tax (assume 1.45 percent) on the entire $1,830 of accrued wages. j. On December 31, 2016, the firm owed federal unemployment tax (assume 0.6 percent) and state unemployment tax (assume 5.4 percent) on the entire $1,830 of accrued wages. 3. Complete the worksheet. (Round your intermediate calculations and final answers to 2 decimal places.)

Answer 1

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you.
Date	Account	Debit	Credit
a	Income Summary	$       11,300
a	Merchandise Inventory		$       11,300
b	Merchandise Inventory	$       12,321
b	Income Summary		$       12,321
c	Uncollectible Accounts Expense	$             158		(35000*0.6%)-52
c	Allowance for doubtful accounts		$             158
d	Supplies Expense	$             925		1200-275
d	Supplies		$             925
e	Advertising Expense	$             240		960/12*3
e	Prepaid Advertising		$             240
f	Depreciation Expesne-Store Equipment	$         1,500		(8100-600)/5
f	Accumulated Depreciation-Store Equipment		$         1,500
g	Depreciation Expesne-Office Equipment	$             280		(1600-200)/5
g	Accumulated Depreciation-Office Equipment		$             280
h	Salaries Expense	$         1,830
h	Salaries Payable		$         1,830
i	Payroll Tax Expense	$             140
i	Social Security Tax Payable		$             113	1830*6.2%
i	Medicare Tax Payable		$               27	1930*1.45%
j	Payroll Tax Expense	$             110
j	Federal Unemployment Tax Payable		$               11	1830*0.6%
j	State Unemployment Tax Payable		$               99	1830*5.4%

	Trial Balance		Adjustments		Adjusted		Income Satement		Balance Sheet
Account name	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit	Debit	Credit
Cash	$            5,700				$      5,700				$     5,700
Accounts Receivable	$            2,600				$      2,600				$     2,600
Allowance for doubtful accounts		$                  52		$        158		$         210				$        210
Merchandise Inventory	$         11,300		$   12,321	$ 11,300	$   12,321				$ 12,321
Supplies	$            1,200			$        925	$         275				$        275
Prepaid Advertising	$               960			$        240	$         720				$        720
Store Equipment	$            8,100				$      8,100				$     8,100
Depreciation Expesne-Store Equipment		$            1,500		$     1,500		$      3,000				$     3,000
Office Equipment	$            1,600				$      1,600				$     1,600
Depreciation Expesne-Office Equipment		$               280		$        280		$         560				$        560
Accounts Payable		$            2,625		$     1,830		$      4,455				$     4,455
Social Security Tax Payable		$               430		$        113		$         543				$        543
Medicare Tax Payable		$                  98		$           27		$         125				$        125
Federal Unemployment Tax Payable				$           11		$            11				$           11
State Unemployment Tax Payable				$           99		$            99				$           99
Salaries Payable						$             -				$            -
Beth Agro, Capital		$         25,457				$   25,457				$ 25,457
Beth Agro, Drawings	$         20,000				$   20,000				$ 20,000
Sales		$         90,048				$   90,048		$ 90,048
Sales Returns and Allowances	$            1,100				$      1,100		$     1,100
Purchases	$         46,400				$   46,400		$ 46,400
Purchases Returns and Allowances		$               430				$         430		$        430
Rent Expense	$            6,000				$      6,000		$     6,000
Telephone Expense	$               590				$         590		$        590
Salaries Expense	$         14,100		$      1,830		$   15,930		$ 15,930
Payroll Tax Expense	$            1,270		$         250		$      1,520		$     1,520
Income Summary			$   11,300	$ 12,321		$      1,021		$     1,021
Supplies Expesne			$         925		$         925		$        925
Advertising Expense			$         240		$         240		$        240
Depreciation Expesne-Store Equipment			$      1,500		$      1,500		$     1,500
Depreciation Expesne-Office Equipment			$         280		$         280		$        280
Uncollectible Accounts Expense			$         158		$         158		$        158
Total	$       120,920	$       120,920	$   28,804	$ 28,804	$ 125,959	$ 125,959	$ 74,643	$ 91,499	$ 51,316	$ 34,460
Net Income							$ 16,856			$ 16,856
Total									$ 51,316	$ 51,316