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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
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 $15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2012 500,000 Service cost 60,000 Instructions: (a) Compute pension expense for the year 2012. Computation of pension expense: Service cost Interest cost ($500,000 10%) Actual (expected) return on plan assets Unrecognized prior service cost amortization Pension expense for 2012

$60,000 50,000 (15,000) 8,000 $103,000

(b) Prepare the journal entry to record pension expense and the employer's contribution to the pension plan in 2012. Pension Expense Cash Pension Asset/Liability Other Comprehensive Income (PSC) 103,000 90,000 5,000 8,000

153010958.xlsx.ms_office, Exercise 20-1 Solution, Page 3 of 10, 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
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 $15,000 Benefits paid to retirees 40,000 Contributions (funding) 90,000 Interest/discount rate 10% Prior service cost amortization 8,000 Projected benefit obligation, January 1, 2012 500,000 Service cost 60,000 Instructions: (a) Compute pension expense for the year 2012. Computation of pension expense: Text Title Text Title Text Title Text Title Text Title

Amount Amount Amount Amount Formula

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

153010958.xlsx.ms_office, Exercise 20-1, Page 4 of 10, 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
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) $560,000 Plan assets, 1/1/12 546,200 Pension liability 13,800 On January 1, 2012, Rydell Corp., through plan amendment, 120,000 grants prior service benefits having a present value of Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2012 17,000 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 Worksheet2012 General Journal Entries Annual OCI - Prior Pension Cash Service Cost Expense 120,000 58,000 61,200 (52,280) 17,000 (65,000) 40,000 83,920 (65,000) 103,000 0 103,000 (121,920) (135,720) (759,200) 623,480

Items Balance, January 1, 2011 (a) Prior service cost New balance, January 1, 2012 (b) Service cost (c) Interest cost (d) Actual return (e) Amortization of PSC (f) Contributions (g) Benefits Journal entry, December 31 Accumulated OCI, December 31, 2011 Balance, December 31, 2012

Pension Asset/ Liability (13,800)

Memo Record Projected Plan Benefit Assets Obligation (560,000) 546,200 (120,000) (680,000) 546,200 (58,000) (61,200) 52,280 65,000 (40,000)

(17,000)

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.

153010958.xlsx.ms_office, Exercise 20-7 Solution, Page 5 of 10, 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
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) $560,000 Plan assets, 1/1/12 546,200 Pension liability 13,800 On January 1, 2012, Rydell Corp., through plan amendment, 120,000 grants prior service benefits having a present value of Settlement rate 9% Service cost 58,000 Contributions (funding) 65,000 Actual (expected) return on plan assets 52,280 Benefits paid to retirees 40,000 Prior service cost amortization for 2012 17,000 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 Worksheet2012 General Journal Entries Annual OCI - Prior Pension Cash Service Cost Expense Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula Amount Formula Formula Formula Formula Formula

Items Balance, January 1, 2011 (a) Prior service cost New balance, January 1, 2012 (b) Service cost (c) Interest cost (d) Actual return (e) Amortization of PSC (f) Contributions (g) Benefits Journal entry, December 31 Accumulated OCI, December 31, 2011 Balance, December 31, 2012

Pension Asset/ Liability Formula

Memo Record Projected Plan Benefit Assets Obligation Formula Formula Formula Formula Formula Formula Formula Formula Formula Formula

Formula

153010958.xlsx.ms_office, Exercise 20-7, Page 6 of 10, 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
P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. Projected benefit obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is agreement so that service costs of $500,000 10% On January 1, 2013, the company amends its pension are created. Other data related to the pension plan are as follows: 2012 $150,000 0 240,000 200,000 252,000 6% 2013 $180,000 90,000 285,000 280,000 260,000 8%

Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets Instructions: (a) Prepare a pension worksheet for the pension plan for 2012 and 2013.

HARRINGTON COMPANY Pension Worksheet2012 and 2013 General Journal Entries Items Balance, Jan. 1, 2012 (a) Service cost (b) Interest cost (c) Actual return (d) Contributions (e) Benefits Journal entry, 12/31/12 Accum OCI, 12/31/11 Balance, Dec. 31, 2012 (f) Additional PSC January 1, 2013 (g) Service cost (h) Interest cost (i) Actual return (j) Unexpected loss (k) Amortization of PSC (l) Contributions (m) Benefits Journal entry, 12/31/13 Accum OCI, 12/31/12 Balance, Dec. 31, 2013 Annual Pension Expense 150,000 450,000 (252,000) (240,000) 348,000 (240,000) 0 0 (108,000) (408,000) 500,000 180,000 540,000 (260,000) (99,360) 90,000 (285,000) Cash OCI - Prior Service Cost OCI Gain/Loss Pension Asset/ Liability (300,000)

Memo Record Projected Plan Benefit Assets Obligation (4,500,000) 4,200,000 (150,000) (450,000) 252,000 240,000 200,000 (200,000)

(4,900,000) (500,000) (5,400,000) (180,000) (540,000)

4,492,000

260,000 99,360 (90,000) 280,000 285,000 (280,000)

450,640

(285,000)

410,000 0 410,000

99,360 0 99,360

(675,000) (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 Expense Other Comprehensive Income (PSC) Other Comprehensive Income (G/L) Cash Pension Asset/Liability

450,640 410,000 99,360 285,000 675,000

153010958.xlsx.ms_office, Problem 20-1 Solution, Page 7 of 10, 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
P20-1 (2-Year Worksheet) On January 1, 2012, Harrington Company has the following defined benefit pension plan balances. Projected benefits obligation $4,500,000 Fair value of plan assets 4,200,000 The interest (settlement) rate applicable to the plan is agreement so that service costs of $500,000 10% On January 1, 2013, the company amends its pension are created. Other data related to the pension plan are as follows: 2012 $150,000 0 240,000 200,000 252,000 6% 2013 $180,000 90,000 285,000 280,000 260,000 8%

Service costs Prior service costs amortization Contributions (funding) to the plan Benefits paid Actual return on plan assets Expected rate of return on assets Instructions: (a) Prepare a pension worksheet for the pension plan for 2012 and 2013.

HARRINGTON COMPANY Pension Worksheet2012 and 2013 General Journal Entries Items Balance, Jan. 1, 2012 (a) Service cost (b) Interest cost (c) Actual return (d) Contributions (e) Benefits Journal entry, 12/31/12 Accum OCI, 12/31/11 Balance, Dec. 31, 2012 (f) Additional PSC January 1, 2013 (g) Service cost (h) Interest cost (i) Actual return (j) Unexpected loss (k) Amortization of PSC (l) Contributions (m) Benefits Journal entry, 12/31/13 Accum OCI, 12/31/12 Balance, Dec. 31, 2013 Area for calculations as desired Area for calculations as desired Area for calculations as desired Annual Pension Expense Amount Amount Amount Amount Formula Formula Formula Formula Formula Formula Amount Amount Formula Amount Formula Amount Amount Cash OCI - Prior Service Cost OCI Gain/Loss Pension Asset/ Liability Amount

Memo Record Projected Plan Benefit Assets Obligation Amount Amount Amount Amount Amount Amount Amount Amount Formula Formula Formula Amount Formula Amount Formula Formula

Amount Amount Amount Amount Amount Amount

Formula

Formula

Formula Amount Formula

Formula Amount Formula

Formula Formula Formula Formula

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

Amount Amount Amount Amount Amount

153010958.xlsx.ms_office, Problem 20-1, Page 8 of 10, 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
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. 2012 2013 Plan assets (fair value), December 31 $699,000 $849,000 Projected benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 (140,000) ? Prior service cost, January 1 250,000 240,000 Service cost 60,000 90,000 Actual and expected return on plan assets 24,000 30,000 Amortization of prior service cost 10,000 12,000 Contributions (funding) 115,000 120,000 Accumulated benefit obligation, December 31 500,000 550,000 Interest/settlement rate 9% 9% Instructions: (a) Compute pension expense for 2012 and 2013. Computation of pension expense: Service cost Interest cost [($700,000 9% and ($800,000 9%)] Expected return on plan assets Amortization of prior service cost Pension expense 2012 $60,000 63,000 (24,000) 10,000 $109,000 2013 $90,000 72,000 (30,000) 12,000 $144,000

(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. 2012 39,000 109,000 10,000 23,000 115,000 2013 Pension Expense Cash Pension Asset/Liability Other Comprehensive Income (PSC) 144,000 120,000 12,000 12,000

Pension Asset/Liability Pension Expense Other Comprehensive Income (PSC) Other Comprehensive Income (G/L) Cash

153010958.xlsx.ms_office, Problem 20-4 Solution, Page 9 of 10, 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
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. 2012 2013 Plan assets (fair value), December 31 $699,000 $849,000 Projected benefit obligation, January 1 700,000 800,000 Pension asset/liability, January 1 (140,000) ? Prior service cost, January 1 250,000 240,000 Service cost 60,000 90,000 Actual and expected return on plan assets 24,000 30,000 Amortization of prior service cost 10,000 12,000 Contributions (funding) 115,000 120,000 Accumulated benefit obligation, December 31 500,000 550,000 Interest/settlement rate 9% 9% Instructions: (a) Compute pension expense for 2012 and 2013. Computation of pension expense: Service cost Interest cost Expected return on plan assets Amortization of prior service cost Pension expense 2012 Amount Formula Amount Amount Formula 2013 Amount Amount Amount Amount Formula

(b) Prepare the journal entries to record the pension expense and the company's funding of the pension plan for both years. 2012 Amount Amount Amount Amount Amount 2013 Amount Amount Amount Amount

Pension Asset/Liability Pension Expense Other Comprehensive Income (PSC) Other Comprehensive Income (G&L) Cash Pension Expense Cash Pension Asset/Liability Other Comprehensive Income (PSC)

153010958.xlsx.ms_office, Problem 20-4, Page 10 of 10, 6/20/2013, 6:59 AM