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 20-1 Solution

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

E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012.

Actual and expected rate of return on plan assets$15,000Benefits paid to retirees40,000Contributions (funding)90,000Interest/discount rate10%Prior service cost amortization8,000Projected benefit obligation, January 1, 2012500,000Service cost60,000

Instructions:(a) Compute pension expense for the year 2012.

Computation of pension expense:Service cost$60,000Interest cost ($500,000 10%)50,000Actual (expected) return on plan assets(15,000)Unrecognized prior service cost amortization8,000Pension expense for 2012$103,000

(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2012.

Pension Expense103,000Cash90,000Pension Asset/Liability5,000Other Comprehensive Income (PSC)8,000

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Exercise 20-1

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

E20-1 (Pension Expense, Journal Entries) The following information is available for the pension plan of Radcliffe Company for the year 2012.

Actual and expected rate of return on plan assets$15,000Benefits paid to retirees40,000Contributions (funding)90,000Interest/discount rate10%Prior service cost amortization8,000Projected benefit obligation, January 1, 2012500,000Service cost60,000

Instructions:(a) Compute pension expense for the year 2012.

Computation of pension expense:Text TitleAmountText TitleAmountText TitleAmountText TitleAmountText TitleFormula

(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2012.

Account TitleAmountAccount TitleAmountAccount TitleAmountAccount TitleAmount

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Exercise 20-7 Solution

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

E20-7 (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2012.Projected benefit obligation, 1/1/12 (before amendment)$560,000Plan assets, 1/1/12546,200Pension liability13,800On January 1, 2012, Rydell Corp., through plan amendment,grants prior service benefits having a present value of120,000

Settlement rate9%Service cost58,000Contributions (funding)65,000Actual (expected) return on plan assets52,280Benefits paid to retirees40,000Prior service cost amortization for 201217,000

Instructions:For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

RYDELL CORP.Pension Worksheet2012General Journal EntriesMemo RecordItemsAnnualPensionExpenseCashOCI - Prior Service CostPensionAsset/LiabilityProjectedBenefitObligationPlanAssetsBalance, January 1, 2011(13,800)(560,000)546,200(a) Prior service cost120,000(120,000)New balance, January 1, 2012(680,000)546,200(b) Service cost58,000(58,000)(c) Interest cost61,200(61,200)(d) Actual return(52,280)52,280(e) Amortization of PSC17,000(17,000)(f) Contributions(65,000)65,000(g) Benefits40,000(40,000)Journal entry, December 3183,920(65,000)103,000(121,920)Accumulated OCI, December 31, 20110Balance, December 31, 2012103,000(135,720)(759,200)623,480

Interest cost = $560,000 + $120,000 = $680,000 Settlement rate of 9% = $61,200.Note: We show actual return on the worksheet to ensure that plan assets are properly reported. If expected and actual return differ, then an additional adjustment is made to compute the proper amount of pension expense.

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Exercise 20-7

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

E20-7 (Basic Pension Worksheet) The following defined pension data of Rydell Corp. apply to the year 2012.Projected benefit obligation, 1/1/12 (before amendment)$560,000Plan assets, 1/1/12546,200Pension liability13,800On January 1, 2012, Rydell Corp., through plan amendment,grants prior service benefits having a present value of120,000

Settlement rate9%Service cost58,000Contributions (funding)65,000Actual (expected) return on plan assets52,280Benefits paid to retirees40,000Prior service cost amortization for 201217,000

Instructions:For 2012, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

RYDELL CORP.Pension Worksheet2012General Journal EntriesMemo RecordItemsAnnualPensionExpenseCashOCI - Prior Service CostPensionAsset/LiabilityProjectedBenefitObligationPlanAssetsBalance, January 1, 2011FormulaFormulaFormula(a) Prior service costFormulaFormulaNew balance, January 1, 2012FormulaFormula(b) Service costFormulaFormula(c) Interest costFormulaFormula(d) Actual returnFormulaFormula(e) Amortization of PSCFormulaFormula(f) ContributionsFormulaFormula(g) BenefitsFormulaFormulaJournal entry, December 31FormulaFormulaFormulaFormulaAccumulated OCI, December 31, 2011AmountBalance, December 31, 2012FormulaFormulaFormulaFormula

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Problem 20-1 Solution

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

P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.Projected benefit obligation$4,500,000Fair value of plan assets4,200,000

The interest (settlement) rate applicable to the plan is10%On January 1, 2013, the company amends its pension agreement so that service costs of$500,000are created. Other data related to the pension plan are as follows:

20122013Service costs$150,000$180,000Prior service costs amortization090,000Contributions (funding) to the plan240,000285,000Benefits paid200,000280,000Actual return on plan assets252,000260,000Expected rate of return on assets6%8%

Instructions:(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.

HARRINGTON COMPANYPension Worksheet2012 and 2013General Journal EntriesMemo RecordItemsAnnualPensionExpenseCashOCI - Prior Service CostOCI - Gain/LossPensionAsset/LiabilityProjectedBenefitObligationPlanAssetsBalance, Jan. 1, 2012(300,000)(4,500,000)4,200,000(a) Service cost150,000(150,000)(b) Interest cost450,000(450,000)(c) Actual return(252,000)252,000(d) Contributions(240,000)240,000(e) Benefits200,000(200,000)Journal entry, 12/31/12348,000(240,000)00(108,000)Accum OCI, 12/31/11Balance, Dec. 31, 2012(408,000)(4,900,000)4,492,000(f) Additional PSC500,000(500,000)January 1, 2013(5,400,000)(g) Service cost180,000(180,000)(h) Interest cost540,000(540,000)(i) Actual return(260,000)260,000(j) Unexpected loss(99,360)99,360(k) Amortization of PSC90,000(90,000)(l) Contributions(285,000)285,000(m) Benefits280,000(280,000)Journal entry, 12/31/13450,640(285,000)410,00099,360(675,000)Accum OCI, 12/31/1200Balance, Dec. 31, 2013410,00099,360(1,083,000)(5,840,000)4,757,000

2012 Interest cost = $4,500,000 10% settlement rate = $450,000.2013 Interest cost = $5,400,000 10% settlement rate = $540,000.2013 Unexpected loss = ($4,492,000 8% expected return on assets in 2012) - $260,000 actual return on plan assets in 2013 = $99,360.

(b) For 2013, prepare the journal entry to record pension-related amounts.Pension Expense450,640Other Comprehensive Income (PSC)410,000Other Comprehensive Income (G/L)99,360Cash285,000Pension Asset/Liability675,000

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Problem 20-1

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

P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances.Projected benefits obligation$4,500,000Fair value of plan assets4,200,000

The interest (settlement) rate applicable to the plan is10%On January 1, 2013, the company amends its pension agreement so that service costs of$500,000are created. Other data related to the pension plan are as follows:

20122013Service costs$150,000$180,000Prior service costs amortization090,000Contributions (funding) to the plan240,000285,000Benefits paid200,000280,000Actual return on plan assets252,000260,000Expected rate of return on assets6%8%

Instructions:(a) Prepare a pension worksheet for the pension plan for 2012 and 2013.

HARRINGTON COMPANYPension Worksheet2012 and 2013General Journal EntriesMemo RecordItemsAnnualPensionExpenseCashOCI - Prior Service CostOCI - Gain/LossPensionAsset/LiabilityProjectedBenefitObligationPlanAssetsBalance, Jan. 1, 2012AmountAmountAmount(a) Service costAmountAmount(b) Interest costAmountAmount(c) Actual returnAmountAmount(d) ContributionsAmountAmount(e) BenefitsAmountAmountJournal entry, 12/31/12FormulaFormulaFormulaFormulaFormulaFormulaFormulaAccum OCI, 12/31/11Balance, Dec. 31, 2012FormulaFormulaFormula(f) Additional PSCAmountAmountJanuary 1, 2013Formula(g) Service costAmountAmount(h) Interest costFormulaFormula(i) Actual returnAmountAmount(j) Unexpected lossFormulaAmount(k) Amortization of PSCAmountAmount(l) ContributionsAmountAmount(m) BenefitsAmountAmountJournal entry, 12/31/13FormulaFormulaFormulaFormulaFormulaAccum OCI, 12/31/12AmountAmountBalance, Dec. 31, 2013FormulaFormulaFormulaFormulaFormula

Area for calculations as desiredArea for calculations as desiredArea for calculations as desired

(b) For 2013, prepare the journal entry to record pension-related amounts.Account titleAmountAccount titleAmountAccount titleAmountAccount titleAmountAccount titleAmount

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Problem 20-4 Solution

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

P20-4 (Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013.

20122013Plan assets (fair value), December 31$699,000$849,000Projected benefit obligation, January 1700,000800,000Pension asset/liability, January 1(140,000)?Prior service cost, January 1250,000240,000Service cost60,00090,000Actual and expected return on plan assets24,00030,000Amortization of prior service cost10,00012,000Contributions (funding)115,000120,000Accumulated benefit obligation, December 31500,000550,000Interest/settlement rate9%9%

Instructions:(a) Compute pension expense for 2012 and 2013.

Computation of pension expense:20122013Service cost$60,000$90,000Interest cost [($700,000 9% and ($800,000 9%)]63,00072,000Expected return on plan assets(24,000)(30,000)Amortization of prior service cost10,00012,000Pension expense$109,000$144,000

(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.

2012Pension Asset/Liability39,000Pension Expense109,000Other Comprehensive Income (PSC)10,000Other Comprehensive Income (G/L)23,000Cash115,0002013Pension Expense144,000Cash120,000Pension Asset/Liability12,000Other Comprehensive Income (PSC)12,000

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Problem 20-4

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

P20-4 (Pension Expense, Journal Entries for 2 Years) Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2012 and 2013.

20122013Plan assets (fair value), December 31$699,000$849,000Projected benefit obligation, January 1700,000800,000Pension asset/liability, January 1(140,000)?Prior service cost, January 1250,000240,000Service cost60,00090,000Actual and expected return on plan assets24,00030,000Amortization of prior service cost10,00012,000Contributions (funding)115,000120,000Accumulated benefit obligation, December 31500,000550,000Interest/settlement rate9%9%

Instructions:(a) Compute pension expense for 2012 and 2013.

Computation of pension expense:20122013Service costAmountAmountInterest costFormulaAmountExpected return on plan assetsAmountAmountAmortization of prior service costAmountAmountPension expenseFormulaFormula

(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years.

2012Pension Asset/LiabilityAmountPension ExpenseAmountOther Comprehensive Income (PSC)AmountOther Comprehensive Income (G&L)AmountCashAmount2013Pension ExpenseAmountCashAmountPension Asset/LiabilityAmountOther Comprehensive Income (PSC)Amount

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