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.
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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 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 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 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 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 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 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 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 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 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
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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.

Name:
Date:
Instructor:
Course:
h
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E3-5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includes
the following selected accounts before adjusting entries have been prepared.
Debit
Credit
Prepaid Insurance
$3,600
Supplies
2,800
Equipment
25,000
Accumulated Depreciation - Equipment
$8,400
Notes Payable
20,000
Unearned Rent Revenue
9,300
Rent Revenue
60,000
Interest Expense
0
Salaries and Wage Expense
14,000
Totals:
$45,400
$97,700
An analysis of the accounts shows the following:
1. The equipment depreciation per month is:
2. One-third of the unearned rent was earned during the quarter.
3. Interest accrued for the month on notes payable is:
4. Supplies on hand total:
5. The monthly insurance expiration rate is:

$250
$500
$650
$300

Instructions:
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts
are: (Omit explanations.)
Depreciation Expense
Insurance Expense
1

Interest Payable
Supplies Expense

Account Title
Account Title
Text / Memo Line - Optional

Amount

Account Title
Account Title
Text / Memo Line - Optional

Amount

Account Title
Account Title
Text / Memo Line - Optional

Amount

Account Title
Account Title
Text / Memo Line - Optional

Amount

Account Title
Account Title
Text / Memo Line - Optional

Amount

Amount

Amount

Amount

Amount

331323419.xlsx, E3-5, Page 3 of 20, 09/28/2016, 02:54:47

Amount

Name:
Solution
Date:
Instructor:
Course:
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E3-5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includes
the following selected accounts before adjusting entries have been prepared.
Debit
Credit
Prepaid Insurance
$3,600
Supplies
2,800
Equipment
25,000
Accumulated Depreciation - Equipment
$8,400
Notes Payable
20,000
Unearned Rent Revenue
9,300
Rent Revenue
60,000
Interest Expense
0
Salaries and Wage Expense
14,000
Totals:
$45,400
$97,700
An analysis of the accounts shows the following:
1. The equipment depreciation per month is:
2. One-third of the unearned rent was earned during the quarter.
3. Interest accrued for the month on notes payable is:
4. Supplies on hand total:
5. The monthly insurance expiration rate is:

$250
$500
$650
$300

Instructions:
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts
are: (Omit explanations.)
Depreciation Expense
Insurance Expense
1

Interest Payable
Supplies Expense

750
Depreciation Expense ($250 per month 3 months)
Accumulated Depreciation - Equipment
End of quarter adjusting entry - Depreciation Expense / Equipment
3,100
Unearned Rent Revenue ($9,300 / 3)
Rent Revenue
End of quarter adjusting entry - Unearned Rent Revenue / Rent Revenue
500
Interest Expense
Interest Payable
End of quarter adjusting entry - Interest Expense / Interest Payable
Supplies Expense ($2,800 - $650)
Supplies
End of quarter adjusting entry - Supplies Expense / Supplies

750

3,100

500

2,150

900
Insurance Expense ($300 per month 3 months)
Prepaid Insurance
End of quarter adjusting entry - Insurance Expense / Prepaid Insurance

331323419.xlsx, E3-5 Solution, Page 4 of 20, 09/28/2016, 02:54:47

2,150

900

Name:
Date:
Instructor:
Course:
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E3-8 (Adjusting Entries) Andy Roddick is the new owner of Ace Computer Services. At the end of August
2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is
some information related to unrecorded expenses that the business incurred during August.
1. At August 31, Roddick owed his employees salaries $1,900 in wages that will be paid on September 1.
$1,900
2. At the end of the month he had not yet received the month's utility bill. Based on past experience, he
estimated the bill would be approximately:
$600
3. On August 1, Bryant borrowed
$60,000
from a local bank on a
15
-year mortgage. The annual interest rate is
8%
4. A telephone bill in the amount of
$117
covering August charges is unpaid at
August 31.
Instructions:
Prepare the adjusting journal entries as of August 31, 2014.
Account Title
Account Title
Text / Memo line

Amount

Account Title
Account Title
Text / Memo line

Amount

Account Title
Account Title
Text / Memo line

Amount

Account Title
Account Title
Text / Memo line

Amount

Amount

Amount

Amount

331323419.xlsx, E3-8, Page 5 of 20, 09/28/2016, 02:54:47

Amount

Name:
Solution
Date:
Instructor:
Course:
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E3-8 (Adjusting Entries) Andy Roddick is the new owner of Ace Computer Services. At the end of August
2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is
some information related to unrecorded expenses that the business incurred during August.
1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1.
$1,900
2. At the end of the month he had not yet received the month's utility bill. Based on past experience, he
estimated the bill would be approximately:
$600
3. On August 1, Roddick borrowed
$60,000
from a local bank on a
15
-year mortgage. The annual interest rate is
8%
4. A telephone bill in the amount of
$117
covering August charges is unpaid at
August 31.
Instructions:
Prepare the adjusting journal entries as of August 31, 2014.
1,900

Salaries and Wages Expense

Salaries and Wages Payable
To record wages payable at 08/31
Utilities Expense
Accounts Payable
To record utilities payable at 08/31

600

Interest Expense ($60,000 8.00% (1/12))

Interest Payable
To record interest payable at 08/31

400

Utilities Expense
Accounts Payable
To record telephone expense / payable at 08/31

117

1,900

600

400

331323419.xlsx, E3-8 Solution, Page 6 of 20, 09/28/2016, 02:54:47

117

Name:
Date:
Instructor:
Course:
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January
2008. Presented below are adjusted and unadjusted trial balances as of December 31, 2012.
MASON ADVERTISING AGENCY
Trial Balance
December 31, 2014
Unadjusted
Debit
Credit
Cash
$11,000
Accounts Receivable
20,000
Supplies
8,400
Prepaid Insurance
3,350
Equipment
60,000
Accumulated Depreciation - Equipment
$28,000
Accounts Payable
5,000
Interest Payable
0
Notes Payable
5,000
Unearned Service Revenue
7,000
Salaries and Wages Payable
0
Common Stock
10,000
Retained Earnings
3,500
Service Revenue
58,600
Salaries and Wages Expense
10,000
Insurance Expense
Interest Expense
350
Depreciation Expense
Supplies Expense
Rent Expense
4,000
Totals:
$117,100
$117,100

Adjusted
Debit
Credit
$11,000
23,500
3,000
2,500
60,000
$33,000
5,000
150
5,000
5,600
1,300
10,000
3,500
63,500
11,300
850
500
5,000
5,400
4,000
$127,050
$127,050

Instructions:
(a) Journalize the annual adjusting entries that were made. (Omit explanations.)
Account Title
Amount
Dec 31
Account Title
Dec 31

Account Title
Account Title

Amount

Dec 31

Account Title
Account Title

Amount

Dec 31

Account Title
Account Title

Amount

Amount

Amount

Amount

331323419.xlsx, Problem 3-2, Page 7 of 20, 09/28/2016, 02:54:47

Amount

Name:
Instructor:

Date:
Course:

Dec 31

Account Title
Account Title

Amount

Dec 31

Account Title
Account Title

Amount

Dec 31

Account Title
Account Title

Amount

Amount

Amount

Amount

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014 and
an unclassified balance sheet at December 31.
MASON ADVERTISING AGENCY
Income Statement
For the Year Ended December 31, 2014
Revenues
Account Title
Expenses
Account Title
Account Title
Account Title
Account Title
Account Title
Account Title
Total expenses
Net income

Amount
Amount
Amount
Amount
Amount
Amount
Amount
Formula
Formula

MASON ADVERTISING AGENCY

Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained Earnings, Jan 1
Add:
Title
Retained Earnings, Dec 31

Amount
Amount
Formula

MASON ADVERTISING AGENCY

Balance Sheet
December 31, 2014
Assets
Account Title
Account Title
Account Title
Account Title
Account Title
Account Title
Total Assets

Amount
Amount
Amount
Amount
Amount
Amount

331323419.xlsx, Problem 3-2, Page 8 of 20, 09/28/2016, 02:54:47

Formula
Formula

Name:
Instructor:

Date:
Course:

331323419.xlsx, Problem 3-2, Page 9 of 20, 09/28/2016, 02:54:47

Name:
Instructor:

Date:
Course:
Liabilities and Stockholders' Equity
Liabilities
Account Title
Account Title
Account Title
Account Title
Account Title
Total Liabilities

Amount
Amount
Amount
Amount
Amount

Stockholders' Equity
Account Title
Account Title
Total liabilities and stockholders' equity

Amount
Amount

(c) Answer the following questions:

(1) If the note has been outstanding

Formula

Formula
Formula

months, what is the annual interest rate on that note?

Enter text answer here.

(2) If the company paid

$12,500
Wages Payable on December 31, 2013

in salaries and wages in 2014, what was the balance in Salaries and

Enter text answer here.

331323419.xlsx, Problem 3-2, Page 10 of 20, 09/28/2016, 02:54:47

in January

331323419.xlsx, Problem 3-2, Page 11 of 20, 09/28/2016, 02:54:47

cember 31, 2014 and

331323419.xlsx, Problem 3-2, Page 12 of 20, 09/28/2016, 02:54:47

331323419.xlsx, Problem 3-2, Page 13 of 20, 09/28/2016, 02:54:47

st rate on that note?

ance in Salaries and

331323419.xlsx, Problem 3-2, Page 14 of 20, 09/28/2016, 02:54:47

Name:
Solution
Date:
Instructor:
Course:
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January
2010. Presented below are adjusted and unadjusted trial balances as of December 31, 2014.
MASON ADVERTISING AGENCY
Trial Balance
December 31, 2014
Unadjusted
Debit
Credit
Cash
$11,000
Accounts Receivable
20,000
Supplies
8,400
Prepaid Insurance
3,350
Equipment
60,000
Accumulated Depreciation - Equipment
$28,000
Accounts Payable
5,000
Interest Payable
0
Notes Payable
5,000
Unearned Service Revenue
7,000
Salaries and Wages Payable
0
Common Stock
10,000
Retained Earnings
3,500
Service Revenue
58,600
Salaries and Wages Expense
10,000
Insurance Expense
Interest Expense
350
Depreciation Expense
Supplies Expense
Rent Expense
4,000
Totals:
$117,100
$117,100

Adjusted
Debit
Credit
$11,000
23,500
3,000
2,500
60,000
$33,000
5,000
150
5,000
5,600
1,300
10,000
3,500
63,500
11,300
850
500
5,000
5,400
4,000
$127,050
$127,050

Instructions:
(a) Journalize the annual adjusting entries that were made. (Omit explanations.)
Accounts Receivable
Dec 31
Service Revenue

3,500
3,500

Dec 31

Unearned Service Revenue

Service Revenue

1,400

Dec 31

Supplies Expense
Supplies

5,400

Dec 31

Depreciation Expense
Accumulated Depreciation - Equipment

5,000

1,400

5,400

331323419.xlsx, Problem 3-2 Solution, Page 15 of 20, 09/28/2016, 02:54:47

5,000

Name:
Instructor:

Solution

Date:
Course:

Dec 31

Interest Expense
Interest Payable

150

Dec 31

Insurance Expense
Prepaid Insurance

850

Dec 31

Salaries and Wages Expense

Salaries and Wages Payable

150

850
1,300
1,300

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and
an unclassified balance sheet at December 31.
MASON ADVERTISING AGENCY
Income Statement
For the Year Ended December 31, 2014
Revenues
Service Revenue
Expenses
Salaries and Wages Expense
Supplies Expense
Depreciation Expense
Rent Expense
Insurance Expense
Interest Expense
Total expenses
Net income

$63,500
$11,300
5,400
5,000
4,000
850
500
27,050
$36,450

MASON ADVERTISING AGENCY

Statement of Retained Earnings
For the Year Ended December 31, 2014
Retained Earnings, Jan 1
Add:
Net Income
Retained Earnings, Dec 31

$3,500
36,450
$39,950

MASON ADVERTISING AGENCY

Balance Sheet
December 31, 2014
Assets
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Equipment
Less: Accumulated Depreciation - Equipment
Total Assets

$11,000
23,500
3,000
2,500
$60,000
33,000

331323419.xlsx, Problem 3-2 Solution, Page 16 of 20, 09/28/2016, 02:54:47

27,000
$67,000

Name:
Instructor:

Solution

Date:
Course:

Liabilities and Stockholders' Equity

Liabilities
Notes Payable
$5,000
Accounts Payable
5,000
Unearned Service Revenue
5,600
Salaries and Wages Payable
1,300
Interest Payable
150
Total Liabilities

$17,050

Stockholders' Equity
Common Stock
Retained Earnings
Total liabilities and stockholders' equity

49,950
$67,000

(c) Answer the following questions:

(1) If the note has been outstanding

$10,000
39,950

months, what is the annual interest rate on that note?

Interest is ($150 / 3 months) $50 per month or ($5,000 / $50) 1.00% of the note payable. This 1.00% 12 months
equals an annual interest rate of 12.00% interest per year.

(2) If the company paid

$12,500
in salaries and wages in 2014, what was the balance in Salaries and
Wages Payable on December 31, 2013?
Salaries and Wages Expense, $11,300 less Salaries and Wages Payable 12/31/14, $1,300 = $10,000. Total
payments, $12,500 - $10,000 = $2,500 Salaries and Wages Payable 12/31/13.

331323419.xlsx, Problem 3-2 Solution, Page 17 of 20, 09/28/2016, 02:54:47

in January

331323419.xlsx, Problem 3-2 Solution, Page 18 of 20, 09/28/2016, 02:54:47

cember 31, 2014, and

331323419.xlsx, Problem 3-2 Solution, Page 19 of 20, 09/28/2016, 02:54:47

st rate on that note?

1.00% 12 months

ance in Salaries and

$10,000. Total

331323419.xlsx, Problem 3-2 Solution, Page 20 of 20, 09/28/2016, 02:54:47