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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: th Intermediate Accounting, 14 Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of $55,000 in 2013, $60,000 in 2014, and $75,000 in 2015. Starfleets pretax financial income for 2012 is $400,000 and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2012. Instructions: (a) Compute taxable income and income taxes payable for 2012. Pretax financial income for 2012 Temporary difference resulting in future taxable amounts in year: $400,000 2013 2014 2015 $55,000 60,000 75,000

Taxable income for 2012 Enacted tax rate Income tax payable for 2012

(190,000) 210,000 30% $63,000

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012. Future Years Future taxable (deductible) amounts Tax rate Deferred tax liability (asset) 2013 $55,000 30% $16,500 2014 $60,000 30% 18,000 2015 $75,000 30% 22,500 Total $190,000 $57,000 $57,000 0 57,000 63,000 $120,000

Deferred tax liability at the end of 2012 Deferred tax liability at the beginning of 2012 Deferred tax expense for 2012 (increase in deferred tax liability) Current tax expense for 2012 (Income tax payable) Income tax expense for 2012 Income Tax Expense Income Tax Payable Deferred Tax Liability 120,000

63,000 57,000

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes." Income before income taxes $400,000 Income tax expense Current $63,000 Deferred 57,000 120,000 Net income after income taxes $280,000 Note: The current/deferred tax expense detail can be presented in the notes to the financial statements.

153010948.xlsx.ms_office, Exercise 19-1 Solution, Page 3 of 12, 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
E19-1 (One Temporary Difference, Future Taxable Amounts, One Rate, No Beginning Deferred Taxes) Starfleet Corporation has one temporary difference at the end of 2012 that will reverse and cause taxable amounts of $55,000 in 2013, $60,000 in 2014, and $75,000 in 2015. Starfleets pretax financial income for 2012 is $400,000 and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2012. Instructions: (a) Compute taxable income and income taxes payable for 2012. Pretax financial income for 2012 Temporary difference resulting in future taxable amounts in year: Amount 2013 2014 2015 Amount Amount Amount

Taxable income for 2012 Enacted tax rate Income tax payable for 2012

Formula Formula Percentage Formula

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012. Future Years Future taxable (deductible) amounts Tax rate Deferred tax liability (asset) 2013 Amount Percentage Formula 2014 Amount Percentage Formula 2015 Amount Percentage Formula Total Formula Formula Formula Amount Formula Amount Formula

Deferred tax liability at the end of 2012 Deferred tax liability at the beginning of 2012 Deferred tax expense for 2012 (increase in deferred tax liability) Current tax expense for 2012 (Income tax payable) Income tax expense for 2012 Account Title Account Title Account Title Formula

Amount Amount

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes." Income before income taxes Income tax expense Current Deferred Net income after income taxes Amount Amount Amount

Formula Formula

153010948.xlsx.ms_office, Exercise 19-1, Page 4 of 12, 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
E19-3 (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes) Brennan Corporation began 2012 with a $90,000 balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to $350,000 and it will reverse evenly over the next 2 years. Pretax accounting income for 2012 is $525,000 , the tax rate for all years is 40% , and taxable income for 2012 is $400,000 Instructions: (a) Compute income taxes payable for 2012. Taxable income for 2012 Enacted tax rate Income tax payable for 2012 $400,000 40% $160,000

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012. Future Years Future taxable (deductible) amounts Tax Rate Deferred tax liability (asset) 2013 $175,000 40% $70,000 2014 $175,000 40% $70,000 Total $350,000 $140,000 $140,000 90,000 50,000 160,000 $210,000

Deferred tax liability at the end of 2012 Deferred tax liability at the beginning of 2012 Deferred tax expense for 2012 (increase required in deferred tax liability) Current tax expense for 2012 Income tax expense for 2012 Income Tax Expense Income Tax Payable Deferred Tax Liability 210,000

160,000 50,000

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes." Income before income taxes Income tax expense Current Deferred Net income $525,000 $160,000 50,000

210,000 $315,000

Note to instructor: Because of the flat tax rate for all years, the amount of cumulative temporary difference existing at the beginning of the year can be calculated by dividing $90,000 by 40%, which equals $225,000. The difference between the $225,000 cumulative temporary difference at the beginning of 2012 and the $350,000 cumulative temporary difference at the end of 2012 represents the net amount of temporary difference originating during 2012 (which is $125,000). With this information, we can reconcile pretax financial income with taxable income as follows: Pretax financial income Temporary difference originating giving rise to net future taxable amounts Taxable income $525,000 (125,000) $400,000

153010948.xlsx.ms_office, Exercise 19-3 Solution, Page 5 of 12, 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
E19-3 (One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes) Brennan Corporation began 2012 with a $90,000 balance in the Deferred Tax Liability account. At the end of 2012, the related cumulative temporary difference amounts to $350,000 and it will reverse evenly over the next 2 years. Pretax accounting income for 2012 is $525,000 , the tax rate for all years is 40% , and taxable income for 2012 is $400,000 Instructions: (a) Compute income taxes payable for 2012. Taxable income for 2012 Enacted tax rate Income tax payable for 2012 Amount Percentage Formula

(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2012. Future Years Future taxable (deductible) amounts Tax Rate Deferred tax liability (asset) 2013 Amount Percentage Formula 2014 Amount Percentage Formula Total Formula Formula Amount Amount Formula Formula Formula Amount Amount Amount

Deferred tax liability at the end of 2012 Title Title Title Title Account Title Account Title Account Title

(c) Prepare the income tax expense section of the income statement for 2012, beginning with the line "Income before income taxes." Income before income taxes Income tax expense Title Title Title Amount Formula Formula

Formula Formula

Note to instructor: Because of the flat tax rate for all years, the amount of cumulative temporary difference existing at the beginning of the year can be calculated by dividing $90,000 by 40%, which equals $225,000. The difference between the $225,000 cumulative temporary difference at the beginning of 2012 and the $350,000 cumulative temporary difference at the end of 2012 represents the net amount of temporary difference originating during 2012 (which is $125,000). With this information, we can reconcile pretax financial income with taxable income as follows: Pretax financial income Title Title Amount Amount Formula

153010948.xlsx.ms_office, Exercise 19-3, Page 6 of 12, 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
P19-1 (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2012. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000 This difference will reverse in equal amounts of $30,000 over the years 2013-2016. 2. Interest received on municipal bonds was $10,000 3. Rent collected in advance on January 1, 2012, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, for book purposes. 4. The tax rates are 40% for 2012 and 35% for 2013 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2012. 6. No deferred taxes existed at the beginning of 2012. Instructions: (a) Compute taxable income for 2012. A = Net Income, B = Tax Rate, C = Income Tax, A B = C, C / B = A A 40% = $320,000 $320,000 / 40% = A A = $800,000 = Taxable income for 2012 (b) Compute pretax financial income for 2012. Taxable income from part (a) Excess depreciation Municipal interest Unearned rent Pretax financial income for 2012 $800,000 120,000 10,000 (40,000) $890,000

(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2012 and 2013. Assume taxable income was $980,000 in 2013. 2012 Income Tax Expense ($320,000 + $42,000 - $14,000) Deferred Tax Asset ($40,000 35%) Income Tax Payable ($800,000 40%) Deferred Tax Liability ($120,000 35%) Income Tax Expense ($343,000 + $7,000 - $10,500) Deferred Tax Liability [($120,000 / 4) 35%] Income Tax Payable ($980,000 35%) Deferred Tax Asset [($40,000 / 2) 35%] 348,000 14,000 320,000 42,000 339,500 10,500 343,000 7,000

2013

(d) Prepare the income tax expense section of the income statement for 2012, beginning with "Income before income taxes." Income before income taxes Income tax expense Current Deferred ($42,000 $14,000) Net income $890,000 $320,000 28,000

348,000 $542,000

153010948.xlsx.ms_office, Problem 19-1 Solution, Page 7 of 12, 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
P19-1 (Three Differences, No Beginning Deferred Taxes, Multiple Rates) The following information is available for Remmers Corporation for 2012. 1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $120,000 This difference will reverse in equal amounts of $30,000 over the years 2013-2016. 2. Interest received on municipal bonds was $10,000 3. Rent collected in advance on January 1, 2012, totaled $60,000 for a 3-year period. Of this amount, $40,000 was reported as unearned at December 31, for book purposes. 4. The tax rates are 40% for 2012 and 35% for 2013 and subsequent years. 5. Income taxes of $320,000 are due per the tax return for 2012. 6. No deferred taxes existed at the beginning of 2012. Instructions: (a) Compute taxable income for 2012. Use this area for calculations Use this area for calculations Use this area for calculations Use this area for calculations (b) Compute pretax financial income for 2012. Taxable income from part (a) Title Title Title Pretax financial income for 2012 Amount Amount Amount Amount Formula

(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2012 and 2013. Assume taxable income was $980,000 in 2013. 2012 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Formula Amount Amount Amount Formula Formula Formula Formula

2013

(d) Prepare the income tax expense section of the income statement for 2012, beginning with "Income before income taxes." Income before income taxes Income tax expense Title Title Net income Amount Amount Amount

Formula Formula

153010948.xlsx.ms_office, Problem 19-1, Page 8 of 12, 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
P19-5 (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 20082014.. Year Pretax Income (Loss) Tax Rate 2008 $40,000 30% 2009 25,000 30% 2010 50,000 30% 2011 80,000 40% 2012 (180,000) 45% 2013 70,000 40% 2014 100,000 35% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 20112014 were enacted in 2011. Instructions: (a) Prepare the journal entries for the years 20122014 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Jennings elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. 2012 Income Tax Refund Receivable 2010 ($50,000 30%) Income Tax Refund Receivable 2011 ($80,000 40%) Benefit Due to Loss Carryback
Deferred Tax Asset [($180,000-$50,000-$80,000) 40%] Benefit Due to Loss Carryforward

15,000 32,000 47,000 20,000 20,000 28,000 20,000 8,000 35,000 35,000

2013

Income Tax Expense Deferred Tax Asset Income Tax Payable [($70,000 - $50,000) 40%] Income Tax Expense Income Tax Payable ($100,000 35%)

2014

(b) Indicate the effect the 2012 entry(ies) has on the December 31, 2012, balance sheet. The income tax refund receivable account totaling $47,000 will be reported under current assets on the balance sheet at December 31, 2012. This type of receivable is usually listed immediately above inventory in the current assets section. This receivable is normally collectible within two months of filing the amended tax returns reflecting the carryback. A deferred tax asset of 20,000 should also be classified as a current asset because the benefits of the loss carryforward are expected to be realized in the year that immediately follows the loss year which means the benefits are expected to be realized in 2013. A current deferred tax asset is usually listed at or near the end of the list of current assets on the balance sheet. Also, retained earnings is increased by $67,000 ($15,000 + $32,000 + $20,000) as a result of the entries to record the benefits of the loss carryback and the loss carryforward.

153010948.xlsx.ms_office, Problem 19-5 Solution, Page 9 of 12, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
(c) Prepare the portion of the income statement, starting with Operating loss before income taxes, for 2012. 2012 Income Statement Operating loss before income taxes Income tax benefit Benefit due to loss carryback Benefit due to loss carryforward Net loss

($180,000) $47,000 20,000

67,000 ($113,000)

(d) Prepare the portion of the income statement, starting with Income before income taxes, for 2013. 2013 Income Statement Income before income taxes Income tax expense Current Deferred Net income Loss (2012) Loss carryback 2010 Loss carryback 2011 Loss carryforward 2013 Taxable income 2013 before carryforward Taxable income 2013 before carryforward Enacted tax rate for 2013 Income tax payable for 2013 $70,000 $8,000 20,000

28,000 $42,000

(180,000) 50,000 80,000 (50,000) 70,000 20,000 40% $8,000

153010948.xlsx.ms_office, Problem 19-5 Solution, Page 10 of 12, 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
P19-5 (NOL without Valuation Account) Jennings Inc. reported the following pretax income (loss) and related tax rates during the years 20082014.. Year Pretax Income (Loss) Tax Rate 2008 $40,000 30% 2009 25,000 30% 2010 50,000 30% 2011 80,000 40% 2012 (180,000) 45% 2013 70,000 40% 2014 100,000 35% Pretax financial income (loss) and taxable income (loss) were the same for all years since Jennings began business. The tax rates from 20112014 were enacted in 2011. Instructions: (a) Prepare the journal entries for the years 20122014 to record income taxes payable (refundable), income tax expense (benefit), and the tax effects of the loss carryback and carryforward. Assume that Jennings elects the carryback provision where possible and expects to realize the benefits of any loss carryforward in the year that immediately follows the loss year. 2010 Account Title Account Title Account Title Account Title Account Title 2011 Account Title Account Title Account Title Account Title Account Title Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

2012

(b) Indicate the effect the 2012 entry(ies) has on the December 31, 2012, balance sheet. Enter text answer as appropriate.

153010948.xlsx.ms_office, Problem 19-5, Page 11 of 12, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield
(c) Prepare the portion of the income statement, starting with Operating loss before income taxes, for 2012. 2012 Income Statement Operating loss before income taxes Income tax benefit Title Title Title

Amount Amount Amount

Formula Formula

(d) Prepare the portion of the income statement, starting with Income before income taxes, for 2013. 2013 Income Statement Income before income taxes Income tax expense Title Title Net income Loss (2012) Title Title Loss carryforward 2013 Title Taxable income 2013 Title Title Amount Amount Amount

Formula Formula

Amount Amount Amount Formula Amount Formula Percentage Formula

153010948.xlsx.ms_office, Problem 19-5, Page 12 of 12, 6/20/2013, 6:59 AM