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Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text.

You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be

printed on the top of each page if the template requires more than one page.

If more than one page is required by the template, manual page breaks have been set to provide consistentpresentation.

And information or data which may be required by the solution will be entered in cells with borders to help identify them.

Be advised, the temp late workb ooks and wo rksheets are not p rotected.

Over typing any data may remov e i t .

Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist inassembly of multiple pages.

All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells.

In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include

date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions.

Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date

format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will

return January 01, 2012, in the format set in the template.

Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the

text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered.

Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This

is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts

appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title

without typing it.Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable,

"A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these

abbreviates may not be acceptable.

Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical

value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign isappropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits

(decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by

an assword, ou ma chan e an of the formattin found in the tem lates to meet our desires.

Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical

value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the

template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal

sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula.

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Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a

memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials.

These titles can simply be typed over.

Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record

the following events in General Journal number six."

The print area is defined to fit onto 8 1/2" × 11" sheets in portrait or landscape mode as required. Margins are generally set

to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you

may have to reformat the margins through Page Setup.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by

utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes."

When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or

-$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" willreturn a negative value if both cells E10 and E11 contain positive values.

Microsoft Office and Microsoft Excel are products of, and copyrighted by,

Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

These are addressed in the tutorial text provided for Microsoft Excel.

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Name: Date:

Instructor: Course:

Debit Credit

$3,6002,800

25,000$8,40020,0006,300

60,0000

14,000

$45,400 $94,700

$250

$500$650$300

750750

2,1002,100

500500

2,150 2,150

900900

Solution

Primer on Using Excel in Accounting by Rex A Schildhouse

Intermediate Accounting, 14th

Edition by Kieso, Weygandt, and Warfield

5 Insurance Expense ($300 per month × 3 months)Prepaid Insurance

End of quarter adjusting entry - Insurance Expense / Prepaid Insurance

4 Supplies Expense ($2,800 - $650)SuppliesEnd of quarter adjusting entry - Supplies Expense / Supplies

3 Interest ExpenseInterest Payable

End of quarter adjusting entry - Interest Expense / Interest Payable

2 Unearned Rent Revenue ($6,300 / 3)Rent Revenue

End of quarter adjusting entry - Unearned Rent Revenue / Rent Revenue

Insurance Expense

1 Depreciation Expense ($250 per month × 3 months) Accumulated Depreciation - Equipment

End of quarter adjusting entry - Depreciation Expense / Equipment

Supplies Expense

5. The monthly insurance expiration rate is:

Inst ruct ions:

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accountsare: (Omit explanations.)

Depreciation Expense Interest Payable

Interest Expense

4. Supplies on hand total:

Salaries and Wage Expense

Totals:

An analysis of the accounts shows the following:1. The equipment depreciation per month is:2. One-third of the unearned rent was earned during the quarter.3. Interest accrued for the month on notes payable is:

Notes PayableUnearned Rent RevenueRent Revenue

SuppliesEquipment Accumulated Depreciation - Equipment

E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes

the following selected accounts before adjusting entries have been prepared.

Prepaid Insurance

150435521.xlsx.ms_office, E3-5 Solution, Page 3 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

Debit Credit

$3,6002,800

25,000$8,40020,0006,300

60,0000

14,000

$45,400 $94,700

$250

$500$650$300

Amount

Amount

Amount Amount

Amount

Amount

Amount Amount

Amount

Amount




Supplies ExpenseInterest Payable

5 Account Title

Account Title

Text / Memo Line - Optional

4 Account Title Account Title


3 Account Title

Account Title


2 Account Title Account Title


Insurance Expense

1 Account Title

Account Title


5. The monthly insurance expiration rate is:

Inst ruct ions:

Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accountsare: (Omit explanations.)

Depreciation Expense

Interest Expense

4. Supplies on hand total:

Salaries and Wage Expense

Totals:

An analysis of the accounts shows the following:1. The equipment depreciation per month is:2. One-third of the unearned rent was earned during the quarter.3. Interest accrued for the month on notes payable is:

Notes PayableUnearned Rent RevenueRent Revenue

SuppliesEquipment Accumulated Depreciation - Equipment

E3-5 (Adjusting Entries) The ledger of Chopin Rental Agency on March 31 of the current year includes

the following selected accounts before adjusting entries have been prepared.

Prepaid Insurance

150435521.xlsx.ms_office, E3-5, Page 4 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

$2,900

$600$60,000 15

8%

$117

2,9002,900

600

600

400400

117117

E3-8 (Adjusting Entries) William Bryant is the new owner of Ace Computer Services. At the end of

August 2012, his first month of ownership, Bryant is trying to prepare monthly financial statements. Belowis some information related to unrecorded expenses that the business incurred during August.

Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield


3. On August 1, Bryant borrowed

4

Utilities Expense Accounts Payable

To record telephone expense / payable at 08/31

3

Interest Expense ($60,000 × 8.00% × (1/12))Interest Payable

Solution

To record interest payable at 08/31

2

Utilities Expense Accounts Payable

To record utilities payable at 08/31

1

Salaries and Wages ExpenseSalaries and Wages Payable

To record wages payable at 08/31

August 31.

Instruct ions:

Prepare the adjusting journal entries as of August 31, 2012.

1. At August 31, Bryant owed his employees salaries and wages that will be paid on September 1 in the

2. At the end of the month he had not yet received the month's utility bill. Based on past experience, heestimated the bill would be approximately:

from a local bank on a

4. A telephone bill in the amount of covering August charges is unpaid at-year mortgage. The annual interest rate is

150435521.xlsx.ms_office, E3-8 Solution, Page 5 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

$2,900

$600$60,000 15

8%

$117

Amount

Amount

Amount Amount

Amount

Amount

Amount

Amount

E3-8 (Adjusting Entries) William Bryant is the new owner of Ace Computer Services. At the end of

August 2012, his first month of ownership, Bryant is trying to prepare monthly financial statements. Belowis some information related to unrecorded expenses that the business incurred during August.

Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield


3. On August 1, Bryant borrowed

4

Account Title

Account Title

Text / Memo line

3

Account Title

Account Title

Text / Memo line

2

Account Title Account Title

Text / Memo line

1

Account Title

Account Title

Text / Memo line

August 31.

Instruct ions:

Prepare the adjusting journal entries as of August 31, 2012.

1. At August 31, Bryant owed his employees salaries and wages that will be paid on September 1 in the

2. At the end of the month he had not yet received the month's utility bill. Based on past experience, heestimated the bill would be approximately:

from a local bank on a

4. A telephone bill in the amount of covering August charges is unpaid at-year mortgage. The annual interest rate is

150435521.xlsx.ms_office, E3-8, Page 6 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

Debit Credit Debit Credit$11,000 $11,00020,000 23,5008,400 3,0003,350 2,500

60,000 60,000

$28,000 $33,0005,000 5,000

0 1505,000 5,0007,000 5,600

0 1,30010,000 10,0003,500 3,500

58,600 63,50010,000 11,300

850350 500

5,0005,400

4,000 4,000

$117,100 $117,100 $127,050 $127,050

3,5003,500

1,4001,400

5,400 5,400

5,0005,000

150150

Solution




Totals:

Equipment

Accumulated Depreciation - Equipment


Supplies Expense

Accounts Payable

Supplies

Accounts ReceivableService Revenue

Unearned Service RevenueDec 31

Dec 31

Service Revenue

Rent Expense

Retained EarningsService RevenueSalaries and Wages ExpenseInsurance ExpenseInterest Expense

Unadjusted Adjusted

MASON ADVERTISING AGENCY

Trial Balance

Interest PayableNotes Payable

Cash Accounts Receivable

Common Stock

SuppliesPrepaid Insurance

Unearned Service RevenueSalaries and Wages Payable

December 31, 2012

Supplies Expense

Interest ExpenseInterest Payable

Dec 31Depreciation Expense

Accumulated Depreciation - Equipment

P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January2008. Presented below are adjusted and unadjusted trial balances as of December 31, 2012.

Dec 31

(a) Journalize the annual adjusting entries that were made. (Omit explanations.)

Ins t ruct ions:

Dec 31

150435521.xlsx.ms_office, Problem 3-2 Solution, Page 7 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

Solution

850850

1,3001,300

$63,500

$11,300

5,4005,0004,000

850

500

27,050$36,450

$3,500

Add: 36,450

$39,950

$11,00023,5003,0002,500

$60,000

33,000 27,000

$67,000

Salaries and Wages ExpenseSalaries and Wages Payable

Salaries and Wages Expense

Supplies Expense

For the Year Ended December 31, 2012


Income Statement

Service Revenue


Net incomeTotal expenses

Expenses

Revenues

Dec 31

Dec 31Insurance Expense

Prepaid Insurance


Statement of Retained Earnings

Rent ExpenseInsurance Expense

Interest Expense


Balance Sheet

December 31, 2012

Assets


Retained Earnings, Jan 1

Net Income

Retained Earnings, Dec 31

Equipment

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2012, and

an unclassified balance sheet at December 31.

Total Assets

Less: Accumulated Depreciation - Equipment

Cash Accounts ReceivableSuppliesPrepaid Insurance


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Name: Date:

Instructor: Course:

Solution

$5,0005,0005,6001,300

150

$17,050

$10,000

39,950 49,950

$67,000

3

$12,500(2) If the company paid in salaries and wages in 2012, what was the balance in Salaries and

Total Liabilities

Notes PayableLiabilities

Stockholders' Equity

Salaries and Wages Payable

Interest Payable

Accounts PayableUnearned Service Revenue

Liabilities and Stockholders' Equity

(c) Answer the following questions:

Total liabilities and stockholders' equity

Interest is ($150 / 3 months) $50 per month or ($5,000 / $50) 1.00% of the note payable. This 1.00% × 12 monthsequals an annual interest rate of 12.00% interest per year.

Salaries and Wages Expense, $11,300 less Salaries and Wages Payable 12/31/12, $1,300 = $10,000. Totalpayments, $12,500 - $10,000 = $2,500 Salaries and Wages Payable 12/31/11.

Common Stock

Retained Earnings

Wages Payable on December 31, 2011?

(1) If the note has been outstanding months, what is the annual interest rate on that note?


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Name: Date:

Instructor: Course:

Debit Credit Debit Credit$11,000 $11,00020,000 23,5008,400 3,0003,350 2,500

60,000 60,000

$28,000 $33,0005,000 5,000

0 1505,000 5,0007,000 5,600

0 1,30010,000 10,0003,500 3,500

58,600 63,50010,000 11,300

850350 500

5,0005,400

4,000 4,000

$117,100 $117,100 $127,050 $127,050

Amount

Amount

Amount Amount

Amount Amount

Amount

Amount

Amount

Amount





Supplies Expense

Common StockRetained EarningsService RevenueSalaries and Wages Expense

(a) Journalize the annual adjusting entries that were made. (Omit explanations.)

Rent Expense

Totals:

Ins t ruct ions:

Account Title

Account Title


P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January2008. Presented below are adjusted and unadjusted trial balances as of December 31, 2012.

Cash Accounts ReceivableSupplies

Trial Balance

December 31, 2012

Unadjusted Adjusted

Interest PayableNotes PayableUnearned Service RevenueSalaries and Wages Payable

Prepaid InsuranceEquipment

Accumulated Depreciation - Equipment Accounts Payable

Insurance ExpenseInterest Expense

Dec 31

Account TitleDec 31

Account Title


Dec 31

Dec 31

Dec 31

Account Title

Account Title

Account Title

Account Title

150435521.xlsx.ms_office, Problem 3-2, Page 10 of 12, 6/7/2013, 6:13 PM

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Name: Date:

Instructor: Course:

Amount

Amount

Amount Amount

Amount

Amount

Amount Amount

Amount

Amount

Amount

FormulaFormula

Amount

Add: Amount

Formula

Amount Amount Amount

Amount

Amount

Amount Formula

Formula

Account Title

Account TitleDec 31


Account Title Account TitleDec 31

Account Title


Expenses

Income Statement


Revenues Account Title


Statement of Retained Earnings

Net income

Account Title

Account Title

Account Title

Total expenses


Balance Sheet

December 31, 2012


Retained Earnings, Jan 1

Title

Retained Earnings, Dec 31

Account Title

Account Title

Account Title

Assets

Account Title Account Title Account Title

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2012, and

an unclassified balance sheet at December 31.

Total Assets


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Name: Date:

Instructor: Course:

Amount Amount

Amount

Amount

Amount

Formula

Amount

Amount Formula

Formula

3

$12,500

Liabilities

(2) If the company paid in salaries and wages in 2012, what was the balance in Salaries andWages Payable on December 31, 2011?

months, what is the annual interest rate on that note?

Total liabilities and stockholders' equity

Total Liabilities

Stockholders' Equity

Enter text answer here.

Enter text answer here.

Account Title

Account Title

Account Title

Account Title

Account Title

Liabilities and Stockholders' Equity


(c) Answer the following questions:(1) If the note has been outstanding


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