Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and...
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Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and sell them to retail stores. Tikkity Tock uses a perpetual inventory system, weighted average method. Tikkity Tock rents their building, but owns the merchandising fumiture and equipment within the building | for these depreciable assets, they use a sole accumulated depreciation account The balance sheet for Tikkity Tock Clock Company is seen below: Tikkity Tock Clock Company Balance Sheet October 31st, 2021 Account Assets Cash Accounts Receivable Inventory Office Supplies Balance $ 240,617.00 $ 108,982.00 $ 129,896.36 $ 1,478.00 $ 121,968.00 $ 519.005.36 Merchandising Fumiture + Equipment $160,000.00 Accumulated Depreciation Total Assets Liabilities Accounts Payable Total Liabilities Stockholders' Equity Common Stock $ 122,646.00 $ 122,646.00 Retained Earnings Total Stockholders' Equity Total Liabilities + Stockholders' Equity $ 381,342.36 $ 15,017.00 $ 396,359.36 $ 519.005.36 Merchandise Inventory as of October 31st, 2021 consists of the following clocks: Item Total Cost Base Level Clock Mid Level Clock Luxury Clock Quantity Unit Cost 3,940.00 $ 25.21 $ 99,327.40 584.00 $ 34.94 $ 20,404.96 175.00 $ 58.08 $ 10.164.00 During the month of November, Tikkity Tock completed the following transactions: November 3rd- Purchased clocks on account from Clock Manufacturers, Inc. terms n/30, FOB destination. These were composed of 432 Base Level Clocks at a unit cost of $24.96/unit, 184 Mid Level Clocks at a unit cost of $36.51/unit, and 27 Luxury Clocks at a unit cost of $62.87/unit. November 7th - Sold 1,300 Base Level Clocks to a Alpine Retail at $34.99/unit, paid in full via cash. November 12th - Sold 22 Luxury Clocks at $95.99/unit and 200 Mid Level Clocks at $48.59/unit to Aspen Local on account, terms 2/15, n/30. November 16th - Paid amount due to Clock Manufacturer's Inc. in full. November 17th- Paid rent on building, $5,000. November 23rd - Received a check from Aspen Local for total amount due on November 12th sale. November 26th - Sold 898 Base Level Clocks to Mountain Meadows Retail at $34.99/unit on account, terms 2/10, n/30. November 30th - Paid utilities, $3,700. November 30th - Refilled office supplies for $290, paid cash. November 30th - Accumulated depreciation of $847 on merchandising fumiture and equipment. November 30th - Counted office supplies, valued at $1,198. November 30th - Physical inventory count yielded 2,172 Base Level Clocks, 562 Mid Level Clocks, and 177 Luxury Clocks. Requirements: 1. Open T-accounts and enter opening balances as of October 31st, 2021. 2. Open inventory records for the three inventory items and enter opening balances. Complete the inventory records. 3. Joumalize the transactions. Explanations are not required. 4. Post the transactions to the t-accounts. 5. Prepare an adjusted trial balance as of November 30th, 2021. 6. Prepare an income statement as of November 30th, 2021. 7. Prepare a statement of retained earnings as of November 30th, 2021. 8. Prepare a balance sheet as of November 30th, 2021. 9. Joumalize all closing entries and post to the t-accounts. 10. Prepare a post-closing trial balance as of November 30th, 2021. Tikkity Tock Clock Company sells three types of clocks. They purchase these clocks from manufacturers and sell them to retail stores. Tikkity Tock uses a perpetual inventory system, weighted average method. Tikkity Tock rents their building, but owns the merchandising fumiture and equipment within the building | for these depreciable assets, they use a sole accumulated depreciation account The balance sheet for Tikkity Tock Clock Company is seen below: Tikkity Tock Clock Company Balance Sheet October 31st, 2021 Account Assets Cash Accounts Receivable Inventory Office Supplies Balance $ 240,617.00 $ 108,982.00 $ 129,896.36 $ 1,478.00 $ 121,968.00 $ 519.005.36 Merchandising Fumiture + Equipment $160,000.00 Accumulated Depreciation Total Assets Liabilities Accounts Payable Total Liabilities Stockholders' Equity Common Stock $ 122,646.00 $ 122,646.00 Retained Earnings Total Stockholders' Equity Total Liabilities + Stockholders' Equity $ 381,342.36 $ 15,017.00 $ 396,359.36 $ 519.005.36 Merchandise Inventory as of October 31st, 2021 consists of the following clocks: Item Total Cost Base Level Clock Mid Level Clock Luxury Clock Quantity Unit Cost 3,940.00 $ 25.21 $ 99,327.40 584.00 $ 34.94 $ 20,404.96 175.00 $ 58.08 $ 10.164.00 During the month of November, Tikkity Tock completed the following transactions: November 3rd- Purchased clocks on account from Clock Manufacturers, Inc. terms n/30, FOB destination. These were composed of 432 Base Level Clocks at a unit cost of $24.96/unit, 184 Mid Level Clocks at a unit cost of $36.51/unit, and 27 Luxury Clocks at a unit cost of $62.87/unit. November 7th - Sold 1,300 Base Level Clocks to a Alpine Retail at $34.99/unit, paid in full via cash. November 12th - Sold 22 Luxury Clocks at $95.99/unit and 200 Mid Level Clocks at $48.59/unit to Aspen Local on account, terms 2/15, n/30. November 16th - Paid amount due to Clock Manufacturer's Inc. in full. November 17th- Paid rent on building, $5,000. November 23rd - Received a check from Aspen Local for total amount due on November 12th sale. November 26th - Sold 898 Base Level Clocks to Mountain Meadows Retail at $34.99/unit on account, terms 2/10, n/30. November 30th - Paid utilities, $3,700. November 30th - Refilled office supplies for $290, paid cash. November 30th - Accumulated depreciation of $847 on merchandising fumiture and equipment. November 30th - Counted office supplies, valued at $1,198. November 30th - Physical inventory count yielded 2,172 Base Level Clocks, 562 Mid Level Clocks, and 177 Luxury Clocks. Requirements: 1. Open T-accounts and enter opening balances as of October 31st, 2021. 2. Open inventory records for the three inventory items and enter opening balances. Complete the inventory records. 3. Joumalize the transactions. Explanations are not required. 4. Post the transactions to the t-accounts. 5. Prepare an adjusted trial balance as of November 30th, 2021. 6. Prepare an income statement as of November 30th, 2021. 7. Prepare a statement of retained earnings as of November 30th, 2021. 8. Prepare a balance sheet as of November 30th, 2021. 9. Joumalize all closing entries and post to the t-accounts. 10. Prepare a post-closing trial balance as of November 30th, 2021.
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Related Book For
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
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