Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Be 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 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

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E10-2 (Acquisition Costs of Realty) Pollachek Co. purchased land as a factory site for $450,000 . The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300 . Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,500 , and a liability insurance premium paid during construction was $900 The contractors charge for construction was $2,740,000 . The company paid the contractor in two installments: $1,200,000 at the end of three months and $1,540,000 upon completion. Interest costs of $170,000 were incurred to finance the construction. Instructions: Determine the cost of the land and the cost of the building as they should be recorded on the books of Pollachek Co. Assume that the land survey was for the building. Land 450,000 42,000 (6,300) 1,850 Building

Land Razing Costs Less: Salvage Legal Fees Survey Plans Title Insurance Liability Insurance Construction Interest Total:

2,200 65,000 1,500 900 2,740,000 170,000 2,978,100

489,050

153010899.xlsx.ms_office, Exercise 10-2 Solution, Page 3 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E10-2 (Acquisition Costs of Realty) Pollachek Co. purchased land as a factory site for $450,000 . The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to raze the old buildings and sold salvaged lumber and brick for $6,300 . Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,500 , and a liability insurance premium paid during construction was $900 The contractors charge for construction was $2,740,000 . The company paid the contractor in two installments: $1,200,000 at the end of three months and $1,540,000 upon completion. Interest costs of $170,000 were incurred to finance the construction. Instructions: Determine the cost of the land and the cost of the building as they should be recorded on the books of Pollachek Co. Assume that the land survey was for the building. Land Amount Amount Amount Amount Building

Text Title Text Title Less: Salvage Text Title Text Title Text Title Text Title Text Title Text Title Text Title

Amount Amount Amount Amount Amount Amount Formula

Formula

153010899.xlsx.ms_office, Exercise 10-2, Page 4 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E10-3 (Acquisition Costs of Trucks) Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2012. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900 2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero-interest bearing note with a face amount of $18,000 The note is due April 1, 2013, Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8% 3. Truck #3 has a list price of $16,000 It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system costs $12,000 and normally sold by Shabbona for $15,200 Shabbona uses perpetual inventory system. 4. Truck #4 has a list price of $14,000 It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a par value per share of $10 and a market value of $13 per share. Instructions: Prepare the appropriate journal entries for the foregoing transactions for Shabbona Corporation. 1 Truck #1 Cash Truck #2 Discount on Notes Payable Cash Notes Payable Hint: Use the Excel Present Value formula. Cells are formatted to show to 2 decimal places. Truck #3 Cost of Goods Sold Inventory Sales Revenue 13,900 13,900 18,363.64 1,636.36 2,000.00 18,000.00

15,200 12,000 12,000 15,200

[Note to instructor: The selling (retail) price of the computer system appears to be a better gauge of the fair value of the consideration given than is the list price of the truck as a gauge of the fair value of the consideration received (truck). Vehicles are very often sold at a price below the list price.] 4 Truck #4 Common Stock Paid-in Capital in Excess of Par Calculation of shares value = 1,000 shares $13 = $13,000 13,000 10,000 3,000

Note: Due to significant digits with worksheets, calculators, and tables, minor differences may occur.

153010899.xlsx.ms_office, Exercise 10-3 Solution, Page 5 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E10-3 (Acquisition Costs of Trucks) Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2012. The terms of acquisition for each truck are described below. 1. Truck #1 has a list price of $15,000 and is acquired for a cash payment of $13,900 2. Truck #2 has a list price of $20,000 and is acquired for a down payment of $2,000 cash and a zero-interest bearing note with a face amount of $18,000 The note is due April 1, 2013, Shabbona would normally have to pay interest at a rate of 10% for such a borrowing, and the dealership has an incremental borrowing rate of 8% 3. Truck #3 has a list price of $16,000 It is acquired in exchange for a computer system that Shabbona carries in inventory. The computer system costs $12,000 and normally sold by Shabbona for $15,200 Shabbona uses perpetual inventory system. 4. Truck #4 has a list price of $14,000 It is acquired in exchange for 1,000 shares of common stock in Shabbona Corporation. The stock has a par value per share of $10 and a market value of $13 per share. Instructions: Prepare the appropriate journal entries for the foregoing transactions for Shabbona Corporation. 1 Account Title Account Title Account Title Account Title Account Title Account Title Hint: Use the Excel Present Value formula. Cells are formatted to show to 2 decimal places. Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount

Amount Amount Amount Amount

Account title Account title Account title

Amount Amount Amount

Note: Due to significant digits with worksheets, calculators, and tables, minor differences may occur.

153010899.xlsx.ms_office, Exercise 10-3, Page 6 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P10-1 (Classification of Acquisition and Other Asset Costs) At December 31, 2011, certain accounts included in the property, plant, and equipment section of Reagan Companys balance sheet had the Land Buildings Leasehold improvements Machinery and equipment $230,000 $890,000 $660,000 $875,000

During 2012 the following transactions occurred: 1. Land site number 621 was acquired for $850,000 In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000 2. A second tract of land (site number 622) with a building was acquired for $420,000 The closing statement indicated that the land value was $300,000 and the building value was $120,000 Shortly after acquisition, the building was demolished at a cost of $41,000 A new building was constructed for $330,000 plus the following costs: Excavation fees $38,000 Architectural design fees $11,000 Building permit fees $2,500 Imputed interest on funds used during $8,500 construction (Stock financing) The building was completed and occupied on September 30, 2012. 3. A third tract of land (site number 623) was acquired for $650,000 and was put on the market for resale. 4. During December 2012, costs of $89,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2014, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,000 freight costs were $3,300 installation costs were $2,400 and royalty payments for 2010 were $17,500 Instructions: (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2012: Land Leasehold Improvements Buildings Machinery and Equipment Disregard the related accumulated depreciation accounts.

153010899.xlsx.ms_office, Problem 10-1 Solution, Page 7 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th REAGAN COMPANY Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield
Analysis of Land Account for 2012 Balance, January 1, 2012 Land site number 621 Acquisition cost Commission to real estate agent Clearing costs Less amounts recovered Total land site number 621 Land site number 622 Land value Building value Demolition cost Total land site number 622 Balance at December 31, 2012 REAGAN COMPANY Analysis of Building Account for 2012 Balance, January 1, 2012 Cost of new building constructed on land site number 622 Construction costs Excavation fees Architectural design fee Building permit fee Balance at December 31, 2012 REAGAN COMPANY Analysis of Leasehold Account for 2012 Balance, January 1, 2012 Office space Balance at December 31, 2012 REAGAN COMPANY Analysis of Machinery & Equipment Account for 2012 Balance, January 1, 2012 Cost of the new machines acquired Invoice price Freight costs Unloading charges Balance at December 31, 2012 $875,000 $87,000 3,300 2,400 $660,000 89,000 $749,000 $890,000 $330,000 38,000 11,000 2,500 $230,000 $850,000 51,000 $35,000 13,000 22,000 $923,000

300,000 120,000 41,000 $461,000 $1,614,000

381,500 $1,271,500

92,700 $967,700

153010899.xlsx.ms_office, Problem 10-1 Solution, Page 8 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th (b) List the items Accounting in the situation,that not used to determine the answer to (a) above, and indicate Intermediate 14 were Edition by Kieso, Weygandt, and Warfield
where, or if, these items should be included in Reagan's financial statements. 1. Interest imputed on common stock financing is not permitted by FASB Statement No. 34 and thus does not appear in any financial statement. 2. Land site number 623, which was acquired for $650,000, should be included in Reagans balance sheet as land held for resale (investment section). 3. Royalty payments of $17,500 should be included as a normal operating expense in Reagans income statement.

153010899.xlsx.ms_office, Problem 10-1 Solution, Page 9 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P10-1 (Classification of Acquisition and Other Asset Costs) At December 31, 2011, certain accounts included in the property, plant, and equipment section of Reagan Companys balance sheet had the Land Buildings Leasehold improvements Machinery and equipment $230,000 $890,000 $660,000 $875,000

During 2012 the following transactions occurred: 1. Land site number 621 was acquired for $850,000 In addition, to acquire the land Reagan paid a $51,000 commission to a real estate agent. Costs of $35,000 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $13,000 2. A second tract of land (site number 622) with a building was acquired for $420,000 The closing statement indicated that the land value was $300,000 and the building value was $120,000 Shortly after acquisition, the building was demolished at a cost of $41,000 A new building was constructed for $330,000 plus the following costs: Excavation fees $38,000 Architectural design fees $11,000 Building permit fees $2,500 Imputed interest on funds used during $8,500 construction (Stock financing) The building was completed and occupied on September 30, 2012. 3. A third tract of land (site number 623) was acquired for $650,000 and was put on the market for resale. 4. During December 2012, costs of $89,000 were incurred to improve leased office space. The related lease will terminate on December 31, 2014, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) 5. A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $87,000 freight costs were $3,300 installation costs were $2,400 and royalty payments for 2010 were $17,500 Instructions: (a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2012: Land Leasehold Improvements Buildings Machinery and Equipment Disregard the related accumulated depreciation accounts.

153010899.xlsx.ms_office, Problem 10-1, Page 10 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th REAGAN COMPANY Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield
Analysis of Land Account for 2012 Balance, January 1, 2012 Land site number 621 Text Title Text Title Text Title Text Title Total land site number 621 Land site number 622 Text Title Text Title Text Title Total land site number 622 Balance at December 31, 2012 REAGAN COMPANY Analysis of Building Account for 2012 Balance, January 1, 2012 Cost of new building constructed on land site number 622 Text Title Text Title Text Title Text Title Balance at December 31, 2012 REAGAN COMPANY Analysis of Leasehold Account for 2012 Balance, January 1, 2012 Text Title Balance at December 31, 2012 REAGAN COMPANY Analysis of Machinery & Equipment Account for 2012 Balance, January 1, 2012 Cost of the new machines acquired Text Title Text Title Text Title Balance at December 31, 2012 Amount Amount Amount Amount Amount Amount Formula Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Formula Formula

Amount Amount Amount Formula Formula

Formula Formula

Formula Formula

153010899.xlsx.ms_office, Problem 10-1, Page 11 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th (b) List the items Accounting in the situation,that not used to determine the answer to (a) above, and indicate Intermediate 14 were Edition by Kieso, Weygandt, and Warfield
where, or if, these items should be included in Reagan's financial statements. Enter text answer as appropriate.

Enter text answer as appropriate.

Enter text answer as appropriate.

153010899.xlsx.ms_office, Problem 10-1, Page 12 of 14, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P10-5 (Classification of Costs and Interest Capitalization) On January 1, 2012, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate brokers commission of $36,000 $6,000 , and title guarantee insurance , legal fees of of $18,000 . The closing statement indicated that the land value was $500,000 and the building value was $100,000 . Shortly after acquisition, the building was razed at a cost of $54,000 Blair entered into a $3,000,000 fixed-price contract with Slatkin Builders, Inc. on March 1, 2012, for the construction of an office building on land site number 101. The building was completed and occupied on September 30, 2013. Additional construction costs were incurred as follows: Plans, specifications, and blueprints $21,000 Architects fees for design and supervision $82,000 The building is estimated to have a 40 year life from date of completion and will be depreciated using the 150% declining balance method. To finance construction costs, Blair borrowed $3,000,000 on March 1, 2012. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 10% Blair's weighted-average amounts of accumulated building construction expenditures were as follows: For the period March 1 to December 31, 2012 $1,300,000 For the period January 1 to September 30, 2013 $1,900,000 Instructions: (a) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of September 30, 2013. BLAIR CORPORATION Cost of Land (Site #101) As of September 30, 2013 Cost of land and old building Real estate brokers commission Legal fees Title insurance Removal of old building Cost of land

$500,000 36,000 6,000 18,000 54,000 $614,000

(b) Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2013. Show supporting computations in good form. BLAIR CORPORATION Cost of Building As of September 30, 2013 Fixed construction contract price Plans, specifications, and blueprints Architects fees Interest capitalized during 2012 (Schedule below) Interest capitalized during 2013 (Schedule below) Cost of building Interest to be capitalized: 2012 $1,300,000 2013 $1,900,000 $3,000,000 21,000 82,000 130,000 190,000 $3,423,000

10% 10%

= =

$130,000 $190,000

153010899.xlsx.ms_office, Problem 10-5 Solution, Page 13 of 14, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
P10-5 (Classification of Costs and Interest Capitalization) On January 1, 2012, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate brokers commission of $36,000 $6,000 , and title guarantee insurance , legal fees of of $18,000 . The closing statement indicated that the land value was $500,000 and the building value was $100,000 . Shortly after acquisition, the building was razed at a cost of $54,000 Blair entered into a $3,000,000 fixed-price contract with Slatkin Builders, Inc. on March 1, 2012, for the construction of an office building on land site number 101. The building was completed and occupied on September 30, 2013. Additional construction costs were incurred as follows: Plans, specifications, and blueprints $21,000 Architects fees for design and supervision $82,000 The building is estimated to have a 40 year life from date of completion and will be depreciated using the 150% declining balance method. To finance construction costs, Blair borrowed $3,000,000 on March 1, 2012. The loan is payable in 10 annual installments of $300,000 plus interest at the rate of 10% Blair's weighted-average amounts of accumulated building construction expenditures were as follows: For the period March 1 to December 31, 2012 $1,300,000 For the period January 1 to September 30, 2013 $1,900,000 Instructions: (a) Prepare a schedule that discloses the individual costs making up the balance in the land account in respect of land site number 101 as of September 30, 2013. BLAIR CORPORATION Cost of Land (Site #101) As of September 30, 2013 Text Title Text Title Text Title Text Title Text Title Cost of land Amount Amount Amount Amount Amount Formula

(b) Prepare a schedule that discloses the individual costs that should be capitalized in the office building account as of September 30, 2013. Show supporting computations in good form. BLAIR CORPORATION Cost of Building As of September 30, 2013 Text Title Text Title Text Title Text Title Text Title Cost of building Interest to be capitalized: 2012 Amount 2013 Amount Amount Amount Amount Amount Amount Formula

Percentage Percentage

= =

Formula Formula

153010899.xlsx.ms_office, Problem 10-5, Page 14 of 14, 6/20/2013, 6:59 AM