Directions
Critical Thinking Assignment #2
This assignment continues Critical Thinking Assignment #1 on Cody Mountain Sports (CMS).
CMS completed the following adjusting transactions during March of 2021:
Mar. 31 Accrued Wages Expense of $2,000
Mar. 31 One month of prepaid insurance has expired.
Requirements:
1. Copy in original journal entries from Critical Thinking Assignment #1. Journalize the adjusting entries and post
these entries to the t-accounts.
2. Prepare an adjusted trial balance as of March 31st, 2021.
3. Prepare an income statement for CMS as of March 31st, 2021.
4. Prepare a statement of retained earnings for CMS for the month ended March 31st, 2021.
5. Prepare a balance sheet for CMS for the month ended March 31st, 2021.
6. Journalize all closing entries and post to the t-accounts.
7. Prepare a post-closing trial balance as of March 31st, 2021.
Non-Closing Journal Entries
Debit Account Credit Account Debit Amount Credit Amount
Mar. 1
Mar. 1
Mar. 4
Mar. 15
Mar. 18
Mar. 19
Mar. 22
Mar. 24
Mar. 27
Mar. 31
Mar. 31
Mar. 31
T-Accounts
Cash Common Stock Prepaid Insurance Service Revenue
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Accounts Receivable Dividends Expense Insurance Expense Rent Expense
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Wages Payable Wages Expense Accounts Payable Fuel Expense
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Adjusted Trial Balance
Unadjusted Trial Balance
CMS
March 31st, 2021
Debit Bal. Credit Bal.
Cash
Prepaid Insurance
Accounts Receivable
Wages Payable
Accounts Payable
Common Stock
Service Revenue
Wages Expense
Fuel Expense
Rent Expense
Dividends Expense
Insurance Expense
Totals
Income Statement
Service Revenue
Wages Expense
Fuel Expense
Rent Expense
Insurance Expense
Net Income
Statement of Retained Earnings
Retained Earnings, Beginning Balance
Net Income
Dividends Expense
Retained Earnings, Ending Balance
Balance Sheet
Assets
Cash
Accounts Receivable
Prepaid Insurance
Total Assets
Liabilities
Accounts Payable
Wages Payable
Insurance Payable
Total Liabilities
Stockholders' Equity
Retained Earnings
Common Stock
Total Stockholders' Equity
Total Liabilities + Stockholders' Equity
Closing Journal Entries
Debit Account Credit Account Debit Amount Credit Amount
Mar. 31
Mar. 31
Mar. 31
Mar. 31
Closing T-Accounts
Cash Common Stock Prepaid Insurance Service Revenue
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Accounts Receivable Dividends Expense Income Summary Retained Earnings
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Wages Payable Wages Expense Accounts Payable Fuel Expense
Debits Credits Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.: Bal.:
Rent Expense Insurance Expense
Debits Credits Debits Credits
Bal.: Bal.:
Post-Closing Trial Balance
Post-Closing Trial Balance
CMS
March 31st, 2021
Debit Bal. Credit Bal.
Cash
Prepaid Insurance
Accounts Receivable
Wages Payable
Accounts Payable
Common Stock
Service Revenue
Wages Expense
Fuel Expense
Rent Expense
Dividends Expense
Insurance Expense
Income Summary
Retained Earnings
Totals
Directions
Critical Thinking Assignment #3
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:
Tikkity Tock Clock Company
Balance Sheet
October 31st, 2021
Account Balance
Assets
Cash $ 239,558.00
Accounts Receivable $ 105,682.00
Inventory $ 97,476.00
Office Supplies $ 1,232.00
Merchandising Furniture + Equipment $ 150,000.00
Accumulated Depreciation $ 119,952.00
Total Assets $ 473,996.00
Liabilities
Accounts Payable $ 108,979.00
Total Liabilities $ 108,979.00
Stockholders' Equity
Common Stock $ 300,000.00
Retained Earnings $ 65,017.00
Total Stockholders' Equity $ 365,017.00
Total Liabilities + Stockholders' Equity $ 473,996.00
Merchandise Inventory as of October 31st, 2021 consists of the following clocks:
Item Quantity Unit Cost Total Cost
Base Level Clock 2,940.00 $ XXXXXXXXXX $ 68,237.40
Mid Level Clock 582.00 $ XXXXXXXXXX $ 19,491.18
Luxury Clock 177.00 $ XXXXXXXXXX $ 9,747.39
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 332 Base Level Clocks at a unit cost of $23.96/unit, 172 Mid Level Clocks
at a unit cost of $35.51/unit, and 23 Luxury Clocks at a unit cost of $61.09/unit.
November 7th - Sold 1,000 Base Level Clocks to a Alpine Retail at $32.99/unit, paid in full via cash.
November 12th - Sold 22 Luxury Clocks at $82.99/unit and 200 Mid Level Clocks at $44.59/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 788 Base Level Clocks to Mountain Meadows Retail at $32.99/unit
on account, terms 2/10, n/30.
November 30th - Paid utilities, $2,500.
November 30th - Refilled office supplies for $250, paid cash.
November 30th - Accumulated depreciation of $833 on merchandising furniture and equipment.
November 30th - Counted office supplies, valued at $1,268.
November 30th - Physical inventory count yielded 1,474 Base Level Clocks, 547 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. Journalize 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. Journalize all closing entries and post to the t-accounts.
10. Prepare a post-closing trial balance as of November 30th, 2021.
Inventory Records
Item:
Date Quantity Purchase Quantity Sold Cost per Unit Quantity on Hand
Item:
Date Quantity Purchase Quantity Sold Cost per Unit Quantity on Hand
Item:
Date Quantity Purchase Quantity Sold Cost per Unit Quantity on Hand
Non-Closing Journal Entries
Date Debit Account Credit Account Debit Amount Credit Amount
T-Accounts
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Adjusted Trial Balance
Account Debit Bal. Credit Bal.
Income Statement
Retained Earnings
Retained Earnings, Beginning Balance
Net Income
Dividend Expense
Retained Earnings, Ending Balance
Balance Sheet
Assets
Total Assets
Liabilities
Total Liabilities
Stockholders' Equity
Total Stockholders' Equity
Total Liabilities + Stockholders' Equity
Closing Journal Entries
Date Debit Account Credit Account Debit Amount Credit Amount
Closing T-Accounts
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Debits Credits Debits Credits Debits Credits
Bal.: Bal.: Bal.:
Post-Closing Trial Balance
Account Debit Bal. Credit Bal.
Directions
Critical Thinking Assignment #4
On August 31st, 2021, the bank statement of Jill's Auto Shop a
ived from Local Bank.
Additionally, you have gathered the following information in order to complete a bank
reconciliation. First, the bank balance as of August 31st, 2021 is $17,412.00 and the Cash
Book Balance was $14, XXXXXXXXXXSecondly, there is a $622.37 deduction for a check drawn
by Jim's Auto Parts that was notified to Local Bank as an e
or. The statement additionally
included three charges for NSF checks - for $482.31, $182.41, and $532.68.
On August 21st, 2021 a deposit was made for $600 that
is not reflected in the bank statement. Jill does collect some payments from customers
by EFT- the bank statement lists two EFT deposits, one for $1,562.89 and one for $2,367.82.
The bank statement also has a $75 deduction for bank service charges.
Jill also has two outstanding checks - Check #324 for $567.32 and Check #362 for $987.31.
Requirements:
1. Prepare the bank reconciliation for Jill's Auto Shop at August 31, 2021.
2. Journalize any required entries from the bank reconciliation, including explanations.
3. Complete a cash t-account showing the beginning balance and applicable transactions
from the reconciliation.
Bank Reconciliation
Bank Book
Balance, August 31st, 2021 Balance, August 31st, 2021
ADD: ADD:
LESS: LESS:
Adj. Bank Balance, August 31st, 2021 Adj. Book Balance, August 31st, 2021
Journal Entries
Date Debit Account Credit Account Debit Amount Credit Amount
T-Account
Cash
Debits Credits
Bal.:
Directions
Critical Thinking Assignment #5
Jack and Jill's Water Delivery Service is preparing adjusting entries for the month end of April 2021.
As part of this, they need you to complete depreciation schedules for the first five years fo
three assets that they purchased April 1st, 2021. On April 1st, 2021 they purchased two trucks and a forklift -
the following transactions show these purchases:
1. Paid $30,000 for a Ford truck retrofitted with water delivery supplies. The truck has a 15 year useful life,
a residual value of $4,000, and 43,800 hours of useful life. In each year, it is used 2,920 hours,
or eight hours a day for 365 days a year.
2. Paid $40,000 for a Dodge truck retrofitted with water delivery supplies. The truck has a 15 year useful life,
a residual value of $6,000, and the same hours of useful life as well as use per year as the Ford truck.
3. Paid $10,000 for a Forklift to load the trucks. The forklift has a nine year useful life, a $1,000 residual value,
and 10,000 hours of useful life. In its first year, it is used for 2,000 hours due to training involved.
Each year after it is used for 1,000 hours per year.
Requirements:
1. Complete depreciation schedules of the first five years for each asset. As part of these depreciation schedules,
you must decide which type of depreciation to utilize and provide a short paragraph on why
you chose that schedule.
Ford Truck
Depreciation for the Yea
Date
2021
2022
2023
2024
2025
2026
Reasoning:
Dodge Truck
Depreciation for the Yea
Date
2021
2022
2023
2024
2025
2026
Reasoning:
Forklift
Depreciation for the Yea
Date
2021
2022
2023
2024
2025
2026
Reasoning:
Instructions
Critical Thinking Assignment #6
Ankel Footwear employees three salespeople, and pays time-and-a-half for overtime. Weekly paychecks are distributed on the Tuesday following the last day of the week (Saturday). Ankel withholds income tax (18%), FICA—OASDI (6.2%), and FICA—Medicare (1.45%). Ankel also pays payroll taxes for FICA—OASDI (6.2%), FICA—Medicare (1.45%), and state and federal unemployment (5.4% and 0.6% respectively). The payroll data for the three salespeople for the week ended March 31 follows:
Name Straight Hours Beginning
Time Worked Cumulative
Rate Earnings
Jimmy Chew $15 52 $420
Manny Blanik 17 48 540
Alexa King 22 46 480
Requirements:
1.     Complete the Payroll Register for the three employees for the week ended March 31, 2018.
2.     Complete the Payroll Tax Register.
3.     Compute the total payroll expense for the week ended March 31. Format to two decimal places.
4.     Record the payroll entries Ankel makes for each of the following:
a.     Wage expense related to the three employees on Saturday, March 31.
b.     Employer payroll taxes related to the three employees on Saturday, March 31.
c.      Payment of all payroll taxes (employee and employer related) on Tuesday, April 3.
d.     Payment of wages on Tuesday, April 3.
Payroll
Requirement 1 Complete the Payroll Register for the three employees for the week ended March 31, 2018.
Payroll Register Payroll Tax Registe
Employee Name Earnings Earnings Withholdings Witholdings Net Pay Check No Wages Expense
Beginning Cumulative Earnings Pay Rate Hours Worked Regular Pay Overtime Pay Cu
ent Period Earnings Ending Cumulative Earnings OASDI Medicare Income Tax Other Total Withholdings
6.2% 1.45%
Jimmy Chew 1104
Manny Blanik 1105
Alexa King 1106
Total
Requirement 2 Complete the Payroll Tax Register for the week ended March 31, 2018.
Payroll Tax Register Payroll Tax Registe
Employee Name Earnings Employer Payroll Taxes
Beginning Cumulative Earnings Cu
ent Period Earnings Ending Cumulative Earnings OASDI Medicare FUTA SUTA Total Taxes
6.2% 1.45% 0.60% 5.40%
Jimmy Chew
Manny Blanik
Alexa King
Total
Requirement 3 Compute the total payroll expense for the week ended March 31.
Description Amount
Journal Entries
Requirement 4a Record the payroll entry Ankel makes for wages expense related to the three employees on Saturday, March 31.
Date Account/Explanation DR CR
To record wages expense and payroll withholdings.
Requirement 4b Record the payroll entry Ankel makes for employer payroll taxes related to the three employees on Saturday, March 31.
Date Account/Explanation DR CR
To record employer's payroll tax expense.
Requirement 4c Record the payroll entry Ankel makes for payment of all payroll taxes (employee and employer related) on Tuesday, April 3.
Date Account/Explanation DR CR
To record payment of payroll tax liabilities.
Requirement 4d Record the payroll entry Ankel makes for payment of wages on Tuesday, April 3.
Date Account/Explanation DR CR
To record payment of wages.