InstructionsInstructions for the Microsoft Excel Templates by Rex A SchildhouseBe advised, the template workbooks and worksheets are not protected.Overtyping any data may remove it.

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.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.

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

Exercise 19-1 Solution

Name:SolutionDate:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of$55,000in 2013,$60,000in 2014, and$75,000in 2015. Starfleets pretax financial income for 2012 is$400,000and the tax rate is30%for all years. There are no deferred taxes at the beginning of 2012.

Instructions:(a) Compute taxable income and income taxes payable for 2012.

Pretax financial income for 2012$400,000Temporary difference resulting in future taxable amounts in year:2013$55,000201460,000201575,000(190,000)Taxable income for 2012210,000Enacted tax rate30%Income tax payable for 2012$63,000

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.

Future Years201320142015TotalFuture taxable (deductible) amounts$55,000$60,000$75,000$190,000Tax rate30%30%30%Deferred tax liability (asset)$16,50018,00022,500$57,000

Deferred tax liability at the end of 2012$57,000Deferred tax liability at the beginning of 20120Deferred tax expense for 2012 (increase in deferred tax liability)57,000Current tax expense for 2012 (Income tax payable)63,000Income tax expense for 2012$120,000

Income Tax Expense120,000Income Tax Payable63,000Deferred Tax Liability57,000

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes."

Income before income taxes$400,000Income tax expenseCurrent$63,000Deferred57,000120,000Net income after income taxes$280,000Note: The current/deferred tax expense detail can be presented in the notes to the financial statements.

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Exercise 19-1

Name:Date:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of$55,000in 2013,$60,000in 2014, and$75,000in 2015. Starfleets pretax financial income for 2012 is$400,000and the tax rate is30%for all years. There are no deferred taxes at the beginning of 2012.

Instructions:(a) Compute taxable income and income taxes payable for 2012.

Pretax financial income for 2012AmountTemporary difference resulting in future taxable amounts in year:2013Amount2014Amount2015AmountFormulaTaxable income for 2012FormulaEnacted tax ratePercentageIncome tax payable for 2012Formula

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.

Future Years201320142015TotalFuture taxable (deductible) amountsAmountAmountAmountFormulaTax ratePercentagePercentagePercentageDeferred tax liability (asset)FormulaFormulaFormulaFormula

Deferred tax liability at the end of 2012FormulaDeferred tax liability at the beginning of 2012AmountDeferred tax expense for 2012 (increase in deferred tax liability)FormulaCurrent tax expense for 2012 (Income tax payable)AmountIncome tax expense for 2012Formula

Account TitleFormulaAccount TitleAmountAccount TitleAmount

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes."

Income before income taxesAmountIncome tax expenseCurrentAmountDeferredAmountFormulaNet income after income taxesFormula

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Exercise 19-3 Solution

Name:SolutionDate:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

E19-3 (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes) Brennan Corporation began 2012 with a$90,000balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to$350,000and it will reverse evenly over the next 2 years. Pretax accounting income for 2012 is $525,000, the tax rate for all years is40%, and taxable income for 2012is$400,000

Instructions:(a) Compute income taxes payable for 2012.

Taxable income for 2012$400,000Enacted tax rate40%Income tax payable for 2012$160,000

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.

Future Years20132014TotalFuture taxable (deductible) amounts$175,000$175,000$350,000Tax Rate40%40%Deferred tax liability (asset)$70,000$70,000$140,000

Deferred tax liability at the end of 2012$140,000Deferred tax liability at the beginning of 201290,000Deferred tax expense for 2012 (increase required in deferred tax liability)50,000

Current tax expense for 2012160,000Income tax expense for 2012$210,000

Income Tax Expense210,000Income Tax Payable160,000Deferred Tax Liability50,000

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes."

Income before income taxes$525,000Income tax expenseCurrent$160,000Deferred50,000210,000Net income$315,000

Note to instructor: Because of the flat tax rate for all years, the amount of cumulative temporary difference existing at the beginning of the year can be calculated by dividing $90,000 by 40%, which equals $225,000. The difference between the $225,000 cumulative temporary difference at the beginning of 2012 and the $350,000 cumulative temporary difference at the end of 2012 represents the net amount of temporary difference originating during 2012 (which is $125,000). With this information, we can reconcile pretax financial income with taxable income as follows:

Pretax financial income$525,000Temporary difference originating giving rise to net future taxable amounts(125,000)

Taxable income$400,000

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Exercise 19-3

Name:Date:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

E19-3 (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes) Brennan Corporation began 2012 with a$90,000balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to$350,000and it will reverse evenly over the next 2 years. Pretax accounting income for 2012 is $525,000, the tax rate for all years is40%, and taxable income for 2012is$400,000

Instructions:(a) Compute income taxes payable for 2012.

Taxable income for 2012AmountEnacted tax ratePercentageIncome tax payable for 2012Formula

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012.

Future Years20132014TotalFuture taxable (deductible) amountsAmountAmountFormulaTax RatePercentagePercentageDeferred tax liability (asset)FormulaFormulaFormula

Deferred tax liability at the end of 2012AmountTitleAmountTitleFormula

TitleFormulaTitleFormula

Account TitleAmountAccount TitleAmountAccount TitleAmount

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes."

Income before income taxesAmountIncome tax expenseTitleFormulaTitleFormulaFormulaTitleFormula

Note to instructor: Because of the flat tax rate for all years, the amount of cumulative temporary difference existing at the beginning of the year can be calculated by dividing $90,000 by 40%, which equals $225,000. The difference between the $225,000 cumulative temporary difference at the beginning of 2012 and the $350,000 cumulative temporary difference at the end of 2012 represents the net amount of temporary difference originating during 2012 (which is $125,000). With this information, we can reconcile pretax financial income with taxable income as follows:

Pretax financial incomeAmountTitleAmount

TitleFormula

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Problem 19-1 Solution

Name:SolutionDate:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

P19-1 (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2012.

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by$120,000This difference will reverse in equal amounts of$30,000over the years2013-2016.2. Interest received on municipal bonds was$10,0003. Rent collected in advance on January 1, 2012, totaled$60,000for a 3-year period. Of this amount,$40,000was reported as unearned at December 31, for book purposes.4. The tax rates are40%for 2012 and35%for 2013 and subsequent years.5. Income taxes of$320,000are due per the tax return for 2012.6. No deferred taxes existed at the beginning of 2012.

Instructions:(a) Compute taxable income for 2012.

A = Net Income, B = Tax Rate, C = Income Tax, A B = C, C / B = AA 40% = $320,000$320,000 / 40% = AA = $800,000 = Taxable income for 2012

(b) Compute pretax financial income for 2012.

Taxable income from part (a)$800,000Excess depreciation120,000Municipal interest10,000Unearned rent(40,000)Pretax financial income for 2012$890,000

(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2012 and 2013. Assume taxable income was$980,000in 2013.

2012Income Tax Expense ($320,000 + $42,000 - $14,000)348,000Deferred Tax Asset ($40,000 35%)14,000Income Tax Payable ($800,000 40%)320,000Deferred Tax Liability ($120,000 35%)42,000

2013Income Tax Expense ($343,000 + $7,000 - $10,500)339,500Deferred Tax Liability [($120,000 / 4) 35%]10,500Income Tax Payable ($980,000 35%)343,000Deferred Tax Asset [($40,000 / 2) 35%]7,000

(d) Prepare the income tax expense section of the income statement for 2012, beginning with "Income before income taxes."

Income before income taxes$890,000Income tax expenseCurrent$320,000Deferred ($42,000 $14,000)28,000348,000Net income$542,000

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Problem 19-1

Name:Date:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

P19-1 (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2012.

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by$120,000This difference will reverse in equal amounts of$30,000over the years2013-2016.2. Interest received on municipal bonds was$10,0003. Rent collected in advance on January 1, 2012, totaled$60,000for a 3-year period. Of this amount,$40,000was reported as unearned at December 31, for book purposes.4. The tax rates are40%for 2012 and35%for 2013 and subsequent years.5. Income taxes of$320,000are due per the tax return for 2012.6. No deferred taxes existed at the beginning of 2012.

Instructions:(a) Compute taxable income for 2012.

Use this area for calculationsUse this area for calculationsUse this area for calculationsUse this area for calculations

(b) Compute pretax financial income for 2012.

Taxable income from part (a)AmountTitleAmountTitleAmountTitleAmountPretax financial income for 2012Formula

(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2012 and 2013. Assume taxable income was$980,000in 2013.

2012Account TitleFormulaAccount TitleAmountAccount TitleAmountAccount TitleAmount

2013Account TitleFormulaAccount TitleFormulaAccount TitleFormulaAccount TitleFormula

(d) Prepare the income tax expense section of the income statement for 2012, beginning with "Income before income taxes."

Income before income taxesAmountIncome tax expenseTitleAmountTitleAmountFormulaNet incomeFormula

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Problem 19-5 Solution

Name:SolutionDate:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

P19-5 (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 20082014..

YearPretax Income (Loss)Tax Rate2008$40,00030%200925,00030%201050,00030%201180,00040%2012(180,000)45%201370,00040%2014100,00035%Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 20112014 were enacted in 2011.

Instructions:(a) Prepare the journal entries for the years 20122014 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Jennings elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

2012Income Tax Refund Receivable 2010 ($50,000 30%)15,000Income Tax Refund Receivable 2011 ($80,000 40%)32,000Benefit Due to Loss Carryback47,000

Deferred Tax Asset [($180,000-$50,000-$80,000) 40%]20,000Benefit Due to Loss Carryforward20,000

2013Income Tax Expense28,000Deferred Tax Asset20,000Income Tax Payable [($70,000 - $50,000) 40%]8,000

2014Income Tax Expense35,000Income Tax Payable ($100,000 35%)35,000

(b) Indicate the effect the 2012 entry(ies) has on the December 31, 2012, balance sheet.

The income tax refund receivable account totaling $47,000 will be reported under current assets on the balance sheet at December 31, 2012. This type of receivable is usually listed immediately above inventory in the current assets section. This receivable is normally collectible within two months of filing the amended tax returns reflecting the carryback. A deferred tax asset of 20,000 should also be classified as a current asset because the benefits of the loss carryforward are expected to be realized in the year that immediately follows the loss year which means the benefits are expected to be realized in 2013. A current deferred tax asset is usually listed at or near the end of the list of current assets on the balance sheet. Also, retained earnings is increased by $67,000 ($15,000 + $32,000 + $20,000) as a result of the entries to record the benefits of the loss carryback and the loss carryforward.

(c) Prepare the portion of the income statement, starting with Operating loss before income taxes, for 2012.

2012 Income StatementOperating loss before income taxes($180,000)Income tax benefitBenefit due to loss carryback$47,000Benefit due to loss carryforward20,00067,000Net loss($113,000)

(d) Prepare the portion of the income statement, starting with Income before income taxes, for 2013.

2013 Income StatementIncome before income taxes$70,000Income tax expenseCurrent$8,000Deferred20,00028,000Net income$42,000

Loss (2012)(180,000)Loss carryback 201050,000Loss carryback 201180,000Loss carryforward 2013(50,000)Taxable income 2013 before carryforward70,000Taxable income 2013 before carryforward20,000Enacted tax rate for 201340%Income tax payable for 2013$8,000

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Problem 19-5

Name:Date:Instructor:Course:Intermediate Accounting, 14th Edition by Kieso, Weygandt, and WarfieldPrimer on Using Excel in Accounting by Rex A Schildhouse

P19-5 (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 20082014..

YearPretax Income (Loss)Tax Rate2008$40,00030%200925,00030%201050,00030%201180,00040%2012(180,000)45%201370,00040%2014100,00035%Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 20112014 were enacted in 2011.

Instructions:(a) Prepare the journal entries for the years 20122014 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Jennings elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year.

2010Account TitleAmountAccount TitleAmountAccount TitleAmount

Account TitleAmountAccount TitleAmount

2011Account TitleAmountAccount TitleAmountAccount TitleAmount

2012Account TitleAmountAccount TitleAmount

(b) Indicate the effect the 2012 entry(ies) has on the December 31, 2012, balance sheet.

Enter text answer as appropriate.

(c) Prepare the portion of the income statement, starting with Operating loss before income taxes, for 2012.

2012 Income StatementOperating loss before income taxesAmountIncome tax benefitTitleAmountTitleAmountFormulaTitleFormula

(d) Prepare the portion of the income statement, starting with Income before income taxes, for 2013.

2013 Income StatementIncome before income taxesAmountIncome tax expenseTitleAmountTitleAmountFormulaNet incomeFormula

Loss (2012)AmountTitleAmountTitleAmountLoss carryforward 2013FormulaTitleAmountTaxable income 2013FormulaTitlePercentageTitleFormula

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