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 furniture 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:
tableTikkity Tock Clock CompanyBalance SheetOctober stAccountBalanceAssetsCashAccounts Receivable,InventoryOffice Supplies,Merchandising Furniture Equipment,Accumulated Depreciation,,Total Assets,,LiabilitiesAccounts Payable,,Total Liabilities,,Stockholders EquityCommon Stock,,Retained Earnings,,Total Stockholders' Equity,,Total Liabilities Stockholders' Equt,,
Merchandise Inventory as of October st consists of the following clocks:
tableItemQuantity,Unit Cost,Total CostBase Level Clock,
