Instructions for the Microsoft Excel Templates

Be advised, the worksheet and workbooks are not protected.

Extensive detail and information is contained within the manual.
Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one of
several help menus.
You should enter your name, course ID, and date name into the cells at the top of the page.
Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of multiple
pages.
Each worksheet contains the identification of the problem or exercise.
All formatting should have been accomplished to provide satisfactory presentation. See the text for additional assistance
in formatting.
There should be no need to insert columns or rows into the workbooks.
If more than one page is required by the problem, the page breaks are preset.
In general, the yellow highlighted cells are the cells which work and effort should be presented.
Place the proper account title in the cell where the word "Account title" appears on the template.
Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed in
some of these cells.
Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be entered. An
amount can be placed in these cells.
Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.
Insert the account number where "Acct Nbr" appears on the template during posting.
Insert the journal reference where "JOURN #" appears on the template during posting.
Insert the title in the cell where "TITLE" appears on the template.
The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.
The gray filled cells define the perimeter of the problem and the print area.
The problem is formatted for whole dollars with comma separations (no cents) except where required.
The display may have "Freeze Pane" invoked so column titles remain visible during data entry.
Negative values may be shown as ($400) or -$400.
Consider using "Split" panes to assist in copy and paste of data.

Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell A34
contains the data to be entered. This precludes typing and data entry errors.

Name:
Problem: P16 Completing the Accounting Cycle
Course:
Date:

Thomas Magnum began operations as a private investigator on January 1, 2015. The trial balance columns of the work sheet for Thomas Magnum, P.I. at March 31 are
THOMAS MAGNUM, P.I.
Worksheet
For the Quarter Ended March 31, 2015
Trial Balance
Adjustments
Adjusted Trial Balance Income Statement
Account titles
Dr.
Cr.
Dr.
Cr.
Dr.
Cr.
Dr.
Cash
11,400
11,400
Accounts Receivable
5,620
530
6,150
Supplies
1,050
670
380
Prepaid Insurance
2,400
600
1,800
Equipment
30,000
30,000
Notes Payable
10,000
10,000
Accounts Payable
12,350
12,350
T. Magnum, Capital
20,000
20,000
T. Magnum, Drawing
600
600
Service Revenue
13,620
530
14,150
Salaries Expense
2,200
2,200
2,200
Travel Expense
1,300
1,300
1,300
Rent Expense
1,200
1,200
1,200
Miscellaneous Expense
200
200
200
55,970
55,970
Supplies Expense
670
670
670
Depreciation Expense
1,000
1,000
1,000
Accumulated Depreciation
1,000
1,000
Interest Expense
150
150
150
Interest Payable
150
150
Insurance Expense
600
600
600
Totals
2,950
2,950
57,650
57,650
7,320
Net Income
6,830
Totals
14,150
Key: (a) Supplies Used; (b) Depreciation Expense; (c) Accrued Interest on note; (d) Insurance Expired; (e) Service Revenue Earned but unbilled.

FileName: 262989562.xlsx, Tab: Problem P16, Page 3 of 12, 03/10/2015, 10:43:59

Name:
Problem: P16 Completing the Accounting Cycle

FileName: 262989562.xlsx, Tab: Problem P16, Page 4 of 12, 03/10/2015, 10:43:59

Name:
Problem: P16 Completing the Accounting Cycle
Other data:
380
1. Supplies on hand total
1,000
2. Depreciation per quarter is
3. Interest accrued on 6-month note payable, issued January 1,
200 per month.
4. Insurance expires at the rate of
530
5. Services provided but unbilled at March 31 total

300

Instructions:
(a) Utilize the worksheet, above, and complete the worksheet.
(b) Prepare an income statement and owner's equity statement for the quarter and a classified balance sheet at March 31. T. Magnum did not make any additional inve
during the quarter ended March 31, 2015.
THOMAS MAGNUM, P.I.
THOMAS MAGNUM, P.I.
Income Statement
Balance Sheet
For the Quarter Ended March 31, 2015
March 31, 2015
Revenues
Assets
Service Revenue
14,150
Current assets
Expenses
Cash
Salaries Expense
2,200
Accounts Receivable
Travel Expense
1,300
Supplies
Rent Expense
1,200
Prepaid Insurance
Miscellaneous Expense
200
Total current assets
Supplies Expense
670
Property, plant, and equipment
Depreciation Expense
1,000
Equipment
Interest Expense
150
Less: Acc. Depreciation - Equipment
Insurance Expense
600
Total assets
Total expenses
7,320
Net income
6,830
Liabilities and Owners Equity
Current liabilities
Notes Payable
THOMAS MAGNUM, P.I.
Accounts Payable
Owners Equity Statement
Interest Payable
For the Quarter Ended March 31, 2015
Total current liabilities
T. Magnum, Capital, Jan 1
20,000
Owners equity
Add: Investment T. Magnum

T. Magnum, Capital
Net Income for March 31
6,830
6,830
Total liabilities and owners equity

FileName: 262989562.xlsx, Tab: Problem P16, Page 5 of 12, 03/10/2015, 10:43:59

Name:
Problem: P16 Completing the Accounting Cycle
Less: T. Magnum, Drawing
T. Magnum, Capital, March 31

26,830
600
26,230

FileName: 262989562.xlsx, Tab: Problem P16, Page 6 of 12, 03/10/2015, 10:43:59

Name:
Problem: P16 Completing the Accounting Cycle
(c) Journalize the adjusting entries from the adjustments columns of the work sheet.
Mar-31
Mar-31
Mar-31
Mar-31
Mar-31

Accounts Receivable
Service Revenue

530

Supplies Expense
Supplies

670

Depreciation Expense
Accumulated Depreciation

530

(d) Journalize the closing entries from the financial state

sheet.
Mar-31
Service Revenue
Income Summary
Mar-31

Expense Summary
Salaries Expense
Travel Expense
Rent Expense
Miscellaneous Expense
Supplies Expense
Depreciation Expense
Interest Expense
Insurance Expense

Mar-31

Revenue and Expense Summary

T. Magnum, Drawing

Mar-31

T. Magnum, Capital
T. Magnum, Drawing

670
1,000
1,000

Interest Expense
Interest Payable

150

Insurance Expense
Prepaid Insurance

600

150
600

FileName: 262989562.xlsx, Tab: Problem P16, Page 7 of 12, 03/10/2015, 10:43:59

as Magnum, P.I. at March 31 are as follows:

Income Statement
Cr.

Balance Sheet
Dr.
Cr.
11,400
6,150
380
1,800
30,000
10,000
12,350
20,000
600

14,150

1,000
150
14,150

50,330

14,150

50,330

43,500
6,830
50,330

unbilled.

FileName: 262989562.xlsx, Tab: Problem P16, Page 8 of 12, 03/10/2015, 10:43:59

FileName: 262989562.xlsx, Tab: Problem P16, Page 9 of 12, 03/10/2015, 10:43:59

did not make any additional investments in the business

MAGNUM, P.I.
nce Sheet
h 31, 2015
Assets
11,400
6,150
380
1,800
19,730
30,000
(1,000)

29,000
48,730

nd Owners Equity
10,000
12,350
150
22,500
20,000
42,500

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FileName: 262989562.xlsx, Tab: Problem P16, Page 11 of 12, 03/10/2015, 10:43:59

g entries from the financial statement columns of the work

Revenue
ome Summary

14,150
14,150

Summary
laries Expense
avel Expense
nt Expense
scellaneous Expense
pplies Expense
preciation Expense
erest Expense
urance Expense

7,320

and Expense Summary

Magnum, Drawing

6,830

m, Capital
Magnum, Drawing

2,200
1,300
1,200
200
670
1,000
150
600
6,830
600
600

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