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.
If more than one page is required by the template, manual page breaks have been set to provide consistent
presentation.
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 "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.
Be advised, the template workbooks and worksheets are not protected.
Overtyping any data may remove it.
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.
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.
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 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 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.
Name: Date:
Instructor: Course:
Debit Credit
$3,600
2,800
25,000
$8,400
20,000
9,300
60,000
0
14,000
$45,400 $97,700
$250
$500
$650
$300
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
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.
Prepaid Insurance
Supplies
Equipment
Accumulated Depreciation - Equipment
Notes Payable
Unearned Rent Revenue
Rent Revenue
Interest Expense
4. Supplies on hand total:
Salaries and Wage Expense
Totals:
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:
5. The monthly insurance expiration rate is:
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 Account Title
Account Title
Text / Memo Line - Optional
2 Account Title
Account Title
Text / Memo Line - Optional
3 Account Title
Account Title
Text / Memo Line - Optional
4 Account Title
Account Title
Text / Memo Line - Optional
Intermediate Accounting, 15
h
Edition by Kieso, Weygandt, and Warfield
Supplies Expense
Interest Payable
5 Account Title
Account Title
Text / Memo Line - Optional
247229830.xlsx.ms_office, E3-5, Page 3 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Debit Credit
$3,600
2,800
25,000
$8,400
20,000
9,300
60,000
0
14,000
$45,400 $97,700
$250
$500
$650
$300
750
750
3,100
3,100
500
500
2,150
2,150
900
900
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.
Prepaid Insurance
Supplies
Equipment
Accumulated Depreciation - Equipment
Notes Payable
Unearned Rent Revenue
Rent Revenue
Interest Expense
4. Supplies on hand total:
Salaries and Wage Expense
Totals:
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:
5. The monthly insurance expiration rate is:
Instructions:
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts
are: (Omit explanations.)
Depreciation Expense Interest Payable
Insurance Expense
1 Depreciation Expense ($250 per month 3 months)
Accumulated Depreciation - Equipment
End of quarter adjusting entry - Depreciation Expense / Equipment
Supplies Expense
2 Unearned Rent Revenue ($9,300 / 3)
Rent Revenue
End of quarter adjusting entry - Unearned Rent Revenue / Rent Revenue
3 Interest Expense
Interest Payable
End of quarter adjusting entry - Interest Expense / Interest Payable
4 Supplies Expense ($2,800 - $650)
Supplies
End of quarter adjusting entry - Supplies Expense / Supplies
5 Insurance Expense ($300 per month 3 months)
Prepaid Insurance
End of quarter adjusting entry - Insurance Expense / Prepaid Insurance
Solution
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
247229830.xlsx.ms_office, E3-5 Solution, Page 4 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
$1,900
$600
$60,000 15
8%
$117
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
1. At August 31, Roddick owed his employees salaries $1,900 in wages that will be paid on September 1.
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:
from a local bank on a
4. A telephone bill in the amount of covering August charges is unpaid at
-year mortgage. The annual interest rate is
Account Title
Text / Memo line
2
Account Title
Account Title
Text / Memo line
1
Account Title
Account Title
Text / Memo line
August 31.
Instructions:
Prepare the adjusting journal entries as of August 31, 2014.
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.
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
3. On August 1, Bryant borrowed
4
Account Title
Account Title
Text / Memo line
3
Account Title
247229830.xlsx.ms_office, E3-8, Page 5 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
$1,900
$600
$60,000 15
8%
$117
1,900
1,900
600
600
400
400
117
117
1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1.
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:
from a local bank on a
4. A telephone bill in the amount of covering August charges is unpaid at
-year mortgage. The annual interest rate is
Interest Payable
Solution
To record interest payable at 08/31
2
Utilities Expense
Accounts Payable
To record utilities payable at 08/31
1
Salaries and Wages Expense
Salaries and Wages Payable
To record wages payable at 08/31
August 31.
Instructions:
Prepare the adjusting journal entries as of August 31, 2014.
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.
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
3. On August 1, Roddick borrowed
4
Utilities Expense
Accounts Payable
To record telephone expense / payable at 08/31
3
Interest Expense ($60,000 8.00% (1/12))
247229830.xlsx.ms_office, E3-8 Solution, Page 6 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Debit Credit Debit Credit
$11,000 $11,000
20,000 23,500
8,400 3,000
3,350 2,500
60,000 60,000
$28,000 $33,000
5,000 5,000
0 150
5,000 5,000
7,000 5,600
0 1,300
10,000 10,000
3,500 3,500
58,600 63,500
10,000 11,300
850
350 500
5,000
5,400
4,000 4,000
$117,100 $117,100 $127,050 $127,050
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Account Title
Account Title
Dec 31
Dec 31
Dec 31
Account Title
Account Title
Account Title
Account Title
Dec 31
Account Title
Dec 31
Account Title
MASON ADVERTISING AGENCY
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.
Cash
Accounts Receivable
Supplies
Trial Balance
December 31, 2014
Unadjusted Adjusted
Interest Payable
Notes Payable
Unearned Service Revenue
Salaries and Wages Payable
Prepaid Insurance
Equipment
Accumulated Depreciation - Equipment
Accounts Payable
Insurance Expense
Interest Expense
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Depreciation Expense
Supplies Expense
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
(a) Journalize the annual adjusting entries that were made. (Omit explanations.)
Rent Expense
Totals:
Instructions:
Account Title
Account Title
247229830.xlsx.ms_office, Problem 3-2, Page 7 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Amount
Formula
Formula
Amount
Add: Amount
Formula
Amount
Amount
Amount
Amount
Amount
Amount Formula
Formula
(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.
Total Assets
Balance Sheet
December 31, 2014
For the Year Ended December 31, 2014
Retained Earnings, Jan 1
Title
Retained Earnings, Dec 31
Account Title
Account Title
Account Title
Assets
Account Title
Account Title
Account Title
MASON ADVERTISING AGENCY
Statement of Retained Earnings
Net income
Account Title
Account Title
Account Title
Total expenses
MASON ADVERTISING AGENCY
Account Title
Account Title
Account Title
Expenses
Income Statement
For the Year Ended December 31, 2014
Revenues
Account Title
Dec 31
MASON ADVERTISING AGENCY
Account Title
Account Title
Dec 31
Account Title
Account Title
247229830.xlsx.ms_office, Problem 3-2, Page 8 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Amount
Amount
Amount
Amount
Amount
Formula
Amount
Amount Formula
Formula
3
$12,500
Total liabilities and stockholders' equity
Total Liabilities
Stockholders' Equity
Enter text answer here.
Enter text answer here.
Account Title
Account Title
Account Title
Account Title
Account Title
Liabilities and Stockholders' Equity
Account Title
Account Title
(c) Answer the following questions:
(1) If the note has been outstanding months, what is the annual interest rate on that note?
Wages Payable on December 31, 2013
Liabilities
(2) If the company paid in salaries and wages in 2014, what was the balance in Salaries and
247229830.xlsx.ms_office, Problem 3-2, Page 9 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Debit Credit Debit Credit
$11,000 $11,000
20,000 23,500
8,400 3,000
3,350 2,500
60,000 60,000
$28,000 $33,000
5,000 5,000
0 150
5,000 5,000
7,000 5,600
0 1,300
10,000 10,000
3,500 3,500
58,600 63,500
10,000 11,300
850
350 500
5,000
5,400
4,000 4,000
$117,100 $117,100 $127,050 $127,050
3,500
3,500
1,400
1,400
5,400
5,400
5,000
5,000
150
150
(a) Journalize the annual adjusting entries that were made. (Omit explanations.)
Instructions:
Dec 31
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.
Dec 31
Supplies Expense
Interest Expense
Interest Payable
Dec 31
Depreciation Expense
Accumulated Depreciation - Equipment
Service Revenue
Salaries and Wages Expense
Insurance Expense
Interest Expense
Unadjusted Adjusted
MASON ADVERTISING AGENCY
Trial Balance
Interest Payable
Notes Payable
Cash
Accounts Receivable
Common Stock
Supplies
Prepaid Insurance
Unearned Service Revenue
Salaries and Wages Payable
December 31, 2014
Solution
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
Totals:
Equipment
Accumulated Depreciation - Equipment
Depreciation Expense
Supplies Expense
Accounts Payable
Supplies
Accounts Receivable
Service Revenue
Unearned Service Revenue
Dec 31
Dec 31
Service Revenue
Rent Expense
Retained Earnings
247229830.xlsx.ms_office, Problem 3-2 Solution, Page 10 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Solution
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield 850
850
1,300
1,300
$63,500
$11,300
5,400
5,000
4,000
850
500
27,050
$36,450
$3,500
Add: 36,450
$39,950
$11,000
23,500
3,000
2,500
$60,000
33,000 27,000
$67,000
(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.
Total Assets
Less: Accumulated Depreciation - Equipment
Cash
Accounts Receivable
Supplies
Prepaid Insurance
MASON ADVERTISING AGENCY
Balance Sheet
December 31, 2014
Assets
For the Year Ended December 31, 2014
Retained Earnings, Jan 1
Net Income
Retained Earnings, Dec 31
Equipment
Net income
Total expenses
Expenses
Revenues
Dec 31
Dec 31
Insurance Expense
Prepaid Insurance
MASON ADVERTISING AGENCY
Statement of Retained Earnings
Rent Expense
Insurance Expense
Interest Expense
Salaries and Wages Expense
Salaries and Wages Payable
Salaries and Wages Expense
Supplies Expense
For the Year Ended December 31, 2014
MASON ADVERTISING AGENCY
Income Statement
Service Revenue
Depreciation Expense
247229830.xlsx.ms_office, Problem 3-2 Solution, Page 11 of 12, 10/12/2014, 7:06 AM
Name: Date:
Instructor: Course:
Solution
Intermediate Accounting, 15
th
Edition by Kieso, Weygandt, and Warfield
$5,000
5,000
5,600
1,300
150
$17,050
$10,000
39,950 49,950
$67,000
3
$12,500
(c) Answer the following questions:
Total liabilities and stockholders' equity
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.
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.
Common Stock
Retained Earnings
Wages Payable on December 31, 2013?
(1) If the note has been outstanding months, what is the annual interest rate on that note?
Stockholders' Equity
Salaries and Wages Payable
Interest Payable
Accounts Payable
Unearned Service Revenue
Liabilities and Stockholders' Equity
Total Liabilities
Notes Payable
Liabilities
(2) If the company paid in salaries and wages in 2014, what was the balance in Salaries and
247229830.xlsx.ms_office, Problem 3-2 Solution, Page 12 of 12, 10/12/2014, 7:06 AM