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.

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 template workbooks and worksheets are not protected.Overtyping any data may remove it.

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.

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

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

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 is appropriate, 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 any password, you may change any of the formatting found in the templates to meet your 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. These are addressed in the tutorial text provided for Microsoft Excel.

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" will return 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

document.xlsx, Exercise 7-1 Solution, Page 3 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:

$600,000 and a commercial checkingaccount has a balance of $800,000 Both are held at First National Bank of Olathe.

write checks on this balance, $5,000,000

through salary reduction) are: $180,000 $1,500,000

$1,000 $150,000

$110,000 has occurred at one of the banks the company uses todeposit its cash receipts. At the present time, the company has no deposits at this bank.

$500,000 These CDs havea maturity of 120 days.

$125,000 $500,000 at all times at First National

Bank of Olathe to ensure future credit availability.$2,100,000 of commercial paper of Sergio Leone Co. which is due in

60 days.$7,700

Instructions:

Cash for Weinstein includes the following:1. Commercial savings account at First National Bank of Olathe with a balance of: $600,000 1. Commercial checking account at First National Bank of Olathe with a balance of: 800,000 2. Money market fund account held at Volonte Co.: 5,000,000 5. Petty cash fund of: 1,000 11. Commercial paper (cash equivalnet) of Sergio Leone Co. due in 60 days: 2,100,000 12. Currency and coin on hand: 7,700

Cash reported on December 31, 2012, balance sheet: $8,508,700

$180,000

$1,500,000

$150,000

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

Primer on Using Excel in Accounting by Rex A Schildhouse

E7-1 (Determining Cash Balance) The controller for Weinstein Co. is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2012, balance sheet. The following information is provided.

1. Commercial savings account has a balance of:

2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to

3. Travel advances for executive travel for the first quarter of the next year (employee to reimburse

4. A separate cash fund is restricted for the retirement of long-term debt. Its balance is5. Petty cash fund of:6. An I.O.U. from Marianne Koch, a company customer, in the amount of7. A bank overdraft of

8. The company has two certificates of deposit, each totaling

9. Weinstein has received a check that is dated January 12, 2013, in the amount of10. Weinstein has agreed to maintain a cash balance of

11. Weinstein has purchased

12. Currency and coin on hand amounted to

(a) Compute the amount of cash to be reported on Weinstein Co.’s balance sheet at December 31, 2012.

(b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2012, balance sheet.3. Travel advances (reimbursed by employee)* should be reported as receivable—employee in the amount of $180,000.

4. Cash restricted in the amount of $1,500,000 for the retirement of long-term debt should be reported as a noncurrent asset identified as “Cash restricted for retirement of long-term debt.”

6. An IOU from Marianne Koch should be reported as a receivable in the amount of $190,000.

document.xlsx, Exercise 7-1 Solution, Page 4 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:

$150,000

6. An IOU from Marianne Koch should be reported as a receivable in the amount of $190,000.

document.xlsx, Exercise 7-1 Solution, Page 5 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:7. The bank overdraft of $110,000 should be reported as a current liability.

$110,000

$1,000,000 9. Postdated check of $125,000 should be reported as an accounts receivable.

$125,000

$0

8. Certificates of deposits of $500,000 each should be classified as temporary investments.

10. The compensating balance requirement does not affect the balance in cash. A note disclosure indicating the arrangement and the amounts involved should be described in the notes.

document.xlsx, Exercise 7-1, Page 6 of 13, 04/20/2023, 04:28:45

Name: Date:

Instructor: Course:

$600,000 and a commercial checkingaccount has a balance of $800,000 Both are held at First National Bank of Olathe.

write checks on this balance, $5,000,000

through salary reduction) are: $180,000 $1,500,000

$1,000 $150,000

$110,000 has occurred at one of the banks the company uses todeposit its cash receipts. At the present time, the company has no deposits at this bank.

$500,000 These CDs havea maturity of 120 days.

$125,000 $500,000 at all times at First National

Bank of Olathe to ensure future credit availability.$2,100,000 of commercial paper of Sergio Leone Co. which is due in

60 days.$7,700

Instructions:

Cash for Weinstein includes the following:1. Commercial savings account at First National Bank of Olathe with a balance of: AmountText line, as required AmountText line, as required AmountText line, as required AmountText line, as required AmountText line, as required AmountText line, as required AmountText line, as required AmountCash reported on December 31, 2012, balance sheet: Amount

Text line, as required

AmountText line, as required

AmountText line, as required

Amount

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

Primer on Using Excel in Accounting by Rex A Schildhouse

E7-1 (Determining Cash Balance) The controller for Weinstein Co. is attempting to determine the amount of cash and cash equivalents to be reported on its December 31, 2012, balance sheet. The following information is provided.

1. Commercial savings account has a balance of:

2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to

3. Travel advances for executive travel for the first quarter of the next year (employee to reimburse

4. A separate cash fund is restricted for the retirement of long-term debt. Its balance is5. Petty cash fund of:6. An I.O.U. from Marianne Koch, a company customer, in the amount of7. A bank overdraft of

8. The company has two certificates of deposit, each totaling

9. Weinstein has received a check that is dated January 12, 2013, in the amount of10. Weinstein has agreed to maintain a cash balance of

11. Weinstein has purchased

12. Currency and coin on hand amounted to

(a) Compute the amount of cash to be reported on Weinstein Co.’s balance sheet at December 31, 2012.

(b) Indicate the proper reporting for items that are not reported as cash on the December 31, 2012, balance sheet.

document.xlsx, Exercise 7-1, Page 7 of 13, 04/20/2023, 04:28:45

Name: Date:

Instructor: Course:Text line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

AmountText line, as required

Amount

document.xlsx, Exercise 7-5 Solution, Page 8 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:

merchandise having a sale price of $2,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90 , terms n/30, was received by Arquette on

Instructions:

Jun 3 Accounts Receivable - Arquette Company 2,000 Sales 2,000

Jun 12 Cash 1,960 Sales Discounts ($2,000 × 2%) 40

Accounts Receivable - Arquette Company 2,000

Jun 3 Accounts Receivable - Arquette Company 1,960 Sales ($2,000 × 98%) 1,960

Jun 12 Cash 1,960 Accounts Receivable - Arquette Company 1,960

Jul 29 Cash 2,000 Accounts Receivable - Arquette Company 1,960 Sales Discounts Forfeited ($2,000 × 2%) 40

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

Primer on Using Excel in Accounting by Rex A Schildhouse

E7-5 (Record Sales Gross and Net) On June 3, Bolton Company sold to Arquette Company

June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Arquette Company.

(a) Prepare journal entries on the Bolton Company books to record all the events noted above under each of the following bases: (1) Sales and receivables are entered at gross selling price.

(2) Sales and receivables are entered at net cash discounts.

(b) Prepare the journal entry under basis 2, assuming that Arquette Company did not remit payment until July 29.

(Note to instructor: Sales discounts forfeited could have been recognized at the time the discount period lapsed. The company, however, would probably not record this forfeiture until final cash settlement.)

document.xlsx, Exercise 7-5, Page 9 of 13, 04/20/2023, 04:28:45

Name: Date:

Instructor: Course:

merchandise having a sale price of $2,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90 , terms n/30, was received by Arquette on

Instructions:

Jun 3 Account TitleAccount TitleAccount Title

Jun 12 Account TitleAccount Title

Account Title

Jun 3 Account TitleAccount TitleAccount Title

Jun 12 Account TitleAccount TitleAccount Title

Jul 29 Account TitleAccount TitleAccount Title

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

Primer on Using Excel in Accounting by Rex A Schildhouse

E7-5 (Record Sales Gross and Net) On June 3, Bolton Company sold to Arquette Company

June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Arquette Company.

(a) Prepare journal entries on the Bolton Company books to record all the events noted above under each of the following bases: (1) Sales and receivables are entered at gross selling price.

(2) Sales and receivables are entered at net cash discounts.

(b) Prepare the journal entry under basis 2, assuming that Arquette Company did not remit payment until July 29.

document.xlsx, Problem 7-1 Solution, Page 10 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:

$45,640 , of which$28,000 represents cash sales, and $17,640 represents collections on account for

which cash discounts of $360 were given.

of $22,450 on which discounts of $250 were taken.

The company uses the periodic method of inventory.Instructions:

12/31/2012 Accounts Receivable ($17,640 + $360) 18,000 Sales 28,000

Cash 45,640 Sales Discounts 360

12/31/2012 Cash 22,200 Purchases Discounts 250

Accounts Payable 22,450

Per Balance Sheet After AdjustmentCurrent assets Debit Credit Debit Credit

Cash $39,000 $15,560 Receivables 42,000 60,000 Inventories 67,000 67,000

Totals: $148,000 $142,560

Current LiabilitiesAccounts Payable $45,000 $67,450 Other Current Liabilities 14,200 14,200

Totals: $59,200 $81,650 Working capital $88,800 $60,910

Current ratio: 2.50 to 1 1.75 to 1Current Ratios: $148,000 ÷ $59,200 = 2.50 to 1, and $142,560 ÷ $81,650 = 1.75 to 1

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

Primer on Using Excel in Accounting by Rex A Schildhouse

P7-1 (Determine Proper Cash Balance) Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.

1. January cash receipts recorded in the December cash book totaled

2. January cash disbursements recorded in the December check register liquidated accounts payable

3. The ledger has not been closed for 2012.4. The amount shown as inventory was determined by physical count on December 31, 2012.

(a) Prepare any entries you consider necessary to correct Francis’s accounts at December 31.

(b) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts:

document.xlsx, Problem 7-1, Page 11 of 13, 04/20/2023, 04:28:45

Name: Date:

Instructor: Course:

$45,640 , of which$28,000 represents cash sales, and $17,640 represents collections on account for

which cash discounts of $360 were given.

of $22,450 on which discounts of $250 were taken.

The company uses the periodic method of inventory.Instructions:

Dec 31, 12 Account Title AmountAccount Title Amount

Account Title AmountAccount Title Amount

Dec 31, 12 Account Title AmountAccount Title Amount

Account Title Amount

Per Balance Sheet After AdjustmentCurrent assets Debit Credit Debit Credit

Cash $39,000 AmountReceivables 42,000 AmountInventories 67,000 Amount

Totals: $148,000 Formula

Current LiabilitiesAccounts Payable $45,000 AmountOther Current Liabilities 14,200 Amount

Totals: $59,200 FormulaWorking capital Formula Formula

Current ratio: Formula to 1 Formula to 1

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

Primer on Using Excel in Accounting by Rex A Schildhouse

P7-1 (Determine Proper Cash Balance) Francis Equipment Co. closes its books regularly on December 31, but at the end of 2012 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.

1. January cash receipts recorded in the December cash book totaled

2. January cash disbursements recorded in the December check register liquidated accounts payable

3. The ledger has not been closed for 2012.4. The amount shown as inventory was determined by physical count on December 31, 2012.

(a) Prepare any entries you consider necessary to correct Francis’s accounts at December 31.

(b) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts:

document.xlsx, Problem 7-3 Solution, Page 12 of 13, 04/20/2023, 04:28:45

Name: Solution Date:

Instructor: Course:

was $555,000 and the Allowance for Doubtful Accounts had a credit balance of $40,000 The year-end balance reported in the balance sheet for the Allowance for Doubtful

Accounts will be based on the aging schedule shown below.

Days Account Outstanding Amount Probability of CollectionLess than 16 days $300,000 0.98 Between 16 and 30 days 100,000 0.90 Between 31 and 45 days 80,000 0.85 Between 46 and 60 days 40,000 0.80 Between 61 and 75 days 20,000 0.55 Over 75 days 15,000 0.00

Instructions:

Days Account Outstanding Amount Probability of Collection Doubtful Accts:0-15 days $300,000 0.98 $6,000 16 - 30 days 100,000 0.90 10,000 31 - 45 days 80,000 0.85 12,000 46 - 60 days 40,000 0.80 8,000 61 - 75 days 20,000 0.55 9,000 Over 75 days 15,000 0.00 Balance for Allowance for Doubtful Accounts $45,000

Accounts Receivable ($555,000 - $15,000) $540,000 Less: Allowance for Doubtful Accounts 45,000

Accounts Receivable - Net $495,000

The year-end bad debt adjustment would decrease before-tax income $20,000 as computed below:

Estimated amount required in the Allowance for Doubtful Accounts $45,000

25,000 Required charge to expense $20,000

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

Primer on Using Excel in Accounting by Rex A Schildhouse

P7-3 (Bad-Debt Reporting—Aging) Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow’s Accounts Receivable account

(a) What is the appropriate balance for the Allowance for Doubtful Accounts at the year-end?

The accounts which have been outstanding over 75 days ($15,000) and have zero probability of collection would be written off immediately by a debit to Allowance for Doubtful Accounts for $15,000 and a credit to Amounts Receivable for $15,000 . It is not considered when determining the proper amount for the Allowance for Doubtful Accounts.

(b) Show how Accounts Receivable would be presented on the balance sheet.

(c) What is the dollar effect of the year-end bad debt adjustment on the before-tax income?

Balance in the account after write-off of uncollectible accounts but before adjustment ($40,000 - $15,000)

document.xlsx, Problem 7-3, Page 13 of 13, 04/20/2023, 04:28:45

Name: Date:

Instructor: Course:

was $555,000 and the Allowance for Doubtful Accounts had a credit balance of $40,000 The year-end balance reported in the balance sheet for the Allowance for Doubtful

Accounts will be based on the aging schedule shown below.

Days Account Outstanding Amount Probability of CollectionLess than 16 days $300,000 0.98 Between 16 and 30 days 100,000 0.90 Between 31 and 45 days 80,000 0.85 Between 46 and 60 days 40,000 0.80 Between 61 and 75 days 20,000 0.55 Over 75 days 15,000 0.00

Instructions:

Days Account Outstanding Amount Probability of Collection Doubtful Accts:0-15 days $300,000 0.98 Formula16 - 30 days 100,000 0.90 Formula31 - 45 days 80,000 0.85 Formula46 - 60 days 40,000 0.80 Formula61 - 75 days 20,000 0.55 FormulaOver 75 days 15,000 0.00 Formula

Formula

Enter text answer here.

Account Title AmountLess: Account Title Amount

Text Title Formula

Enter text answer as desired here.

Text Title AmountText explanation as required.

AmountText Title Formula

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

Primer on Using Excel in Accounting by Rex A Schildhouse

P7-3 (Bad-Debt Reporting—Aging) Manilow Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Manilow’s Accounts Receivable account

(a) What is the appropriate balance for the Allowance for Doubtful Accounts at the year-end?

(b) Show how Accounts Receivable would be presented on the balance sheet.

(c) What is the dollar effect of the year-end bad debt adjustment on the before-tax income?