accounting.pdf

It is good p ractice to alw ays m ove your cu rsor to cell A1 before savin g your spreadsh eet. Th is will en su re th at your spreadsh eet open s in th e first cell wh en you reop en it . For m an y spreadsh eet app lication s, a sh ortcu t for m ovin g to cell A1 is by h old in g down th e <Ctrl> key an d pressin g th e <Hom e> key. Ch eck your software’s Help file for its specific sh ortcu t com m an ds.

Step 11 Prin t th e com pleted spreadsh eet.Step 12 Exit th e spreadsheet program .Step 13 In th e Close Option s win dow, select th e location where you would like to save

your work.

Com plete th e Analyze activity for Problem 4-6 from your textbook.

_____________________________________________________________ _____________________________________________________________ _____________________________________________________________

Always save your work before perform in g Wh at-If An alysis. It is n ot n ecessary to save your work after perform in g Wh at-If An alysis un less your teach er in structs you to do so. If you are required to save your work after perform in g Wh at-If An alysis, be su re to ren am e th e spreadsh eet to avoid savin g over your origin al work.

If Juan ita Ortega purch ased a com puter for $1,500 cash , wh at would the balance in th e Cash in Ban k accoun t be?

_____________________________________________________________ _____________________________________________________________ _____________________________________________________________

Stu d en t Na m e ______________________________________Date ___________________

Step 1 Read the in structions for Problem 5-8 in your textbook. Th is problem involves determ in in g th e m issing am oun ts for th e accoun ting equation s given .

Step 2 Go to th e Glen coe Accoun ting On lin e Learn in g Cen ter at glen coe.com .Step 3 From th e Studen t Cen ter m en u, click on Spreadsh eet Tem plates.Step 4 Select tem plate 5-8 from th e Ch apter 5 drop-down list. The tem plate sh ould

look like the one below.

Step 5 Type your n am e an d today’s date in th e cells con tain ing th e an d placeh olders.

Step 6 Th e first equation is com pleted for you. Notice th at Assets ($64,400) equal Liabilities ($8,200) + Own er’s Capital ($56,300) – With drawals ($500) + Reven ue ($10,000) – Expen ses ($9,600).

Step 7 To com plete the secon d equation , type th e am oun ts given in your textbook for Assets, Liabilities, Own er’s Equity, With drawals, an d Reven ue in the appropriate cells. To calculate th e am oun t for Expen ses, add Liabilities ($525) + Own er’s Equity ($18,800) – Withdrawals ($1,200) + Revenue ($12,100) to get a total of $30,225. Subtract Assets ($22,150) from th is am oun t to get $8,075, th e m issing am oun t for Expen ses. Type 8075 in cell L12.

Rem em ber, do n ot type a dollar sign or a com m a wh en you en ter th e data—th e sp readsh eet tem plate w ill au tom at ically form at th e data for you .

Step 8 To check your work, look at cells L23 and L25. Total Assets sh ould equal Total Liabilities + Own er’s Equity – Withdrawals + Revenue – Expen ses.

Step 9 Com plete th e rem ain in g equations in Problem 5-8 by typin g th e appropriate data from your text in to the spreadsh eet tem plate an d calculatin g th e m issin g am oun ts.

Check th e totals at th e bottom of th e spreadsh eet after the am oun ts h ave been en tered to m ake sure they are in balan ce. If th e totals do n ot balan ce, ch eck your work closely to fin d th e error, and m ake any n ecessary correction s. When you h ave en tered all of th e equation s, ask your teach er to check your work.

Step 10 Save th e spreadsheet usin g th e Save option from th e File m en u.Step 11 Prin t th e com pleted spreadsh eet.Step 12 Exit th e spreadsheet program .Step 13 In th e Close Option s win dow, select th e location where you would like to save

your work.


Always save your work before perform in g Wh at-If An alysis. It is n ot n ecessary to save your work after perform in g Wh at-If An alysis un less your teach er in structs you to do so. If you are required to save your work after perform in g Wh at-If An alysis, be sure to ren am e th e spreadsh eet to avoid savin g over your origin al work.

If Liabilities are $50,000, Own er’s Capital is $39,250, With drawals are $1,176, Reven ue is $15,802, an d Expen ses are $11,660, wh at are Assets?

Use row 11 of th e spreadsh eet tem p late to an swer th is question . Type th e am oun ts for Liabilities, Ow n er’s Cap ital, With d rawals, Reven ue, an d Expen ses. Note th at th e am oun t for Assets is au tom atically com puted for you! Th is is because cell B11 con tain s a form u la th at au tom atically calcu lates th e m issin g am oun t. Form ulas are very usefu l in spreadsh eets, savin g t im e an d im provin g accuracy.


Step 1 Read the in structions for Problem 8-4 in your textbook. Th is problem involves preparing a six-colum n work sh eet for Wildern ess Ren tals.




Step 6 Th e first accoun t, Cash in Ban k, has a m on th -en d debit balan ce of $5,814. Move th e cell poin ter to cell C14 an d type th e accoun t balan ce in to th e Trial Balan ce section of th e spreadsh eet tem plate: 5814.

It is n ot n ecessary to in clude a com m a or th e decim al poin t an d two zeroes as part of th e am oun t. Th e spreadsh eet w ill au tom atically form at th e data as you type.

Step 7 Type th e rem ain in g balances in to th e Trial Balan ce section of the spreadsh eet tem plate. When you h ave typed all of th e balan ces, m ove th e cell poin ter in to th e Incom e Statem en t an d Balan ce Sheet section s of th e spreadsh eet tem plate. Notice that th e am oun ts for th e In com e Statem en t an d Balan ce Sh eet are autom atically en tered. As you type th e data in to th e Trial Balan ce section of th e spreadsh eet tem plate, th e program autom atically calculates the rem ain in g section s of th e work sh eet for you. Th e program also calculates th e colum n totals and the n et in com e for Wildern ess Ren tals.

Wh en you have fin ished en terin g th e accoun t balan ces, ask your teach er to check your work.

Step 8 Save th e spreadsh eet usin g th e Save option from th e m enu.Step 9 Prin t th e com pleted spreadsh eet.

If your spreadsh eet is too w ide to fit on an 8.5-in ch wide p iece of paper, you can ch an ge your prin t settin gs to prin t th e worksh eet

. Som e spread sh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction w ill reduce th e wid th an d depth of th e w orksh eet to fit on on e page.

Step 10 Exit th e spreadsheet program .Step 11 In th e Close Option s win dow, select th e location wh ere you would like to save

your work.


Alw ays save your work before perform in g Wh at-If An alysis. It is n ot n ecessary to save your w ork after perform in g Wh at-If An alysis un less your teach er in structs you to do so. If you are requ ired to save your work after perform in g Wh at-If An alysis, be sure to ren am e th e spreadsh eet to avoid savin g over you r origin al work.

If Cash in Ban k were $4,314 an d Ren t Expen se were $5,000, wh at would Wildern ess Ren tals’ n et in com e (or n et loss) be?


Step 1 Read the in structions for Problem 8-8 in your textbook. Th is problem involves com pletin g a six-colum n work sh eet for Job Con nect.



Step 5 Type your n am e an d today’s date in th e cells con tain ing th e ) and placeh olders.

Step 6 Th e work sh eet for Job Con n ect is given in th e spreadsh eet tem plate. However, several am oun ts are m issin g from various colum n s. Calculate the m issin g am oun ts an d type them in th e cells con tain in g th e AMOUNT placeholders. For exam ple, the first am oun t m issin g is th e Trial Balan ce debit am oun t for

Accoun ts Receivable—Marquez Man ufacturin g. By lookin g in th e Balan ce Sh eet debit colum n, you can see th is am oun t is $908.00. Type 908 in cell C16. Rem em ber, it is not necessary to type a dollar sign or the decim al poin t an d en din g zeroes.

Step 7 En ter th e rem ain in g m issing am oun ts in to the work sh eet. Notice th at the tem plate recalculates th e colum n totals an d th e net incom e for Job Con n ect as you type the m issin g am oun ts. Wh en you h ave fin ished en terin g th e accoun t balan ces, ask your teach er to check your work.

Step 8 Save th e spreadsheet usin g th e Save option from th e m enu.Step 9 Prin t th e com pleted spreadsh eet.

If your spreadsh eet is too w ide to fit on an 8.5-in ch wide p iece of paper, you can ch an ge your p rin t set t in gs to prin t th e worksh eet

. Som e spreadsh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction will reduce th e wid th an d / or dep th of th e worksh eet to fit on on e page.

Step 10 Exit th e spreadsheet program .Step 11 In th e Close Option s win dow, select th e location where you would like to save

your work.


Prepa ring a Sta tement of Cha nges in Owner’s EquityStu d en t Na m e ______________________________________Date ___________________

Step 1 Read the in structions for Problem 9-8 in your textbook. Th is problem involves preparing a statem en t of chan ges in own er’s equity.




Step 6 Type th e investm en ts by owner, n et in com e, with drawals by own er, and en din g capital in th e cells con tain in g the AMOUNT placeholders. Rem em ber, it is n ot n ecessary to add th e decim al poin t an d en din g zeroes. Th e beginn in g capital an d th e total increase in capital will be autom atically com puted.

Step 7 Save the spreadsh eet usin g th e Save option from th e File m en u.

Step 8 Prin t th e com pleted spreadsh eet.Step 9 Exit th e spreadsheet program .Step 10 In th e Close Option s win dow, select th e location wh ere you would like to save

your work.

Com plete th e Analyze activity for Problem 9-8 from your textbook. _____________________________________________________________

Rem em ber, always save your work before perform in g Wh at-If An alysis. Be su re to ren am e th e sp readsh eet if you save your work after perform in g Wh at-If An alysis.

If th e own er with drew $3,200 durin g th e period, wh at would begin n in g capital be? _____________________________________________________________


Step 1 Read the in structions for Problem 10-9 in your textbook. Th is problem involves preparing a six-colum n work sh eet an d th e end-of-period fin an cial statem en ts for Job Con n ect.

Step 2 Go to th e Glen coe Accoun ting On lin e Learn in g Cen ter at glen coe.com .Step 3 From th e Studen t Cen ter m en u, click on Spreadsh eet Tem plates.Step 4 Select tem plate 10-9 from the Ch apter 10 drop-down list. Th e tem plate sh ould



Step 6 Th e first accoun t, Cash in Ban k, has a m on th -en d balan ce of $6,000. Move th e cell poin ter to cell C14 and type th e accoun t balan ce in to the Trial Balan ce debit colum n of the work sh eet: 6000.

Rem em ber, it is n ot n ecessary to in clude a com m a or th e decim al poin t an d two zeroes as part of th e am oun t . Th e spreadsh eet w ill au tom atically form at th e data wh en it is en tered .

Step 7 En ter th e rem ain in g balan ces in to the Trial Balance section of th e work sh eet. Wh en you h ave en tered all of th e balan ces, m ove the cell poin ter in to the Incom e Statem en t and Balan ce Sh eet section s of th e work sh eet. Notice th at

th e am oun ts for th e In com e Statem en t an d Balance Sh eet are autom atically en tered. As you type th e data in to th e Trial Balan ce section of th e work sheet, th e program autom atically calculates th e rem ain in g section s of th e work sh eet for you. The program also calculates th e colum n totals an d th e net in com e for Job Con n ect.

Step 8 Now scroll down below th e work sh eet and look at the incom e statem en t, statem en t of changes in own er’s equity, and balance sh eet for Job Con n ect. Notice the fin an cial statem en ts are already com pleted. Th is is because th e spreadsheet tem plate in cludes form ulas th at autom atically pull in form ation from th e filled-in work sheet to com plete th e financial statem en ts.

Step 9 Now scroll down below th e balan ce sheet an d com plete th e closin g en tries in th e gen eral journal. The accoun t n am es and postin g references are given for you.

Step 10 Scroll down below th e closing en tries and look at th e post-closin g trial balan ce. Th e am oun ts h ave been autom atically calculated usin g form ulas.

Wh en you have fin ished the problem , ask your teach er to check your work.Step 11 Save th e spreadsh eet usin g th e Save option from th e File m enu.Step 12 Prin t th e com pleted spreadsh eet.

If your spreadsh eet is too w ide to fit on an 8.5-in ch wide p iece of paper, you can ch an ge your prin t settin gs to prin t th e worksh eet la n dsca pe. Som e spread sh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction w ill reduce th e wid th an d/ or dep th of th e worksh eet to fit on on e page.

Wh en prin tin g a lon g sp readsh eet with m ultip le parts, you m ay wan t to in sert p age breaks between th e section s so th at each on e begin s p rin tin g at th e top of a n ew page. Page breaks h ave already been en tered in to th is spreadsh eet tem plate. Ch eck your program ’s Help file for in struction s on h ow to en ter page breaks.


your work.


TIP 10-9D: Rem em ber, always save your work before perform in g Wh at-If An alysis. Be su re to ren am e th e spreadsh eet if you save your work after perform in g Wh at-If An alysis.

If Cash in Ban k were $5,000 an d Advertisin g Expense were $4,000, wh at would Job Con n ect’s n et incom e be? Wh at would Job Con nect’s en ding capital be?


Step 1 Read the in structions for Problem 11-6 in your textbook. Th is problem involves recon cilin g a ban k statem en t for Outback Guide Service.



Step 5 Type your n am e an d today’s date in th e cells con tain ing the an d placeholders.

Step 6 Th e balance sh own on th e ban k statem en t is $2,272.36. Move th e cell poin ter to cell E12 an d type the ban k statem en t balan ce: 2272.36. (Rem em ber, it is n ot n ecessary to include a com m a as part of the en try.)

Step 7 A deposit was n ot reflected on th e ban k statem en t. Move th e cell poin ter to cell D15 an d type th e am oun t of th e deposit.

Step 8 Begin n in g in cell D19, type th e am oun ts for th e outstan ding checks. Th e spreadsheet tem plate will autom atically calculate the adjusted ban k balan ce.

Step 9 Move th e cell poin ter to cell E26 an d type the ch eckbook balan ce.Step 10 No in terest was earn ed for th e period, so there are n o addition s to th e

checkbook balan ce. Move the cell poin ter to cell D29 an d type 0 as th e am oun t of in terest earn ed.

Step 11 Move the cell poin ter to cell D33 and type th e am oun t of th e ban k service charge.

Step 12 Move the cell poin ter to cell D34 and type th e am oun t of th e NSF ch eck. Th e spreadsheet tem plate will autom atically calculate th e adjusted ch eckbook balan ce.

Step 13 Th e adjusted ban k balan ce and adjusted ch eckbook balance sh ould be equal. If th ey are n ot equal, fin d th e error(s) an d m ake the n ecessary correction s. When th e balan ces are equal, ask your teach er to ch eck your work.

Step 14 Save th e spreadsheet usin g th e Save option from th e File m en u.Step 15 Prin t th e com pleted spreadsh eet.Step 16 Exit th e spreadsheet program .Step 17 In th e Close Option s win dow, select th e location where you would like to save

your work.



Step 1 Read the in structions for Problem 12-6 in your textbook. Th is problem involves preparing a payroll register.




Step 6 Type th e m arital status, n um ber of allowances, total hours worked, an d h ourly rate for each em ployee in the appropriate cells of th e spreadsh eet tem plate. The spreadsheet tem plate will autom atically calculate the regular earn in gs, overtim e earn ings, total earn in gs, Social Security tax, Medicare tax, an d state incom e tax for each em ployee.

Th e cells for Social Security tax , Medicare tax, an d state in com e tax are set up to roun d th ese n um bers to two decim al p laces. Wh en you are typ in g data in th is spreadsh eet tem p late, always roun d n um bers to two decim al p laces wh en roun d in g is n ecessary.

Step 7 Use the tax tables in your textbook to determ ine th e federal in com e tax for each em ployee. Type th e federal incom e tax for each em ployee.

Step 8 Type th e h ospital in suran ce deduction of $6.75 for th e em ployees wh o h ave h ealth an d h ospital in suran ce.

Step 9 Type th e un ion dues of $4.50 for th e em ployees wh o are un ion m em bers. The spreadsheet tem plate autom atically calculates the total deductions an d n et pay for each em ployee. Wh en you h ave typed all of th e data, ask your teach er to check your work.

Step 10 Save th e spreadsh eet usin g th e Save option from th e m enu.Step 11 Prin t th e com pleted spreadsh eet.

If your sp readsh eet is too w ide to fit on an 8.5-in ch wid e p iece of paper, you can ch an ge your p rin t set tin gs to prin t th e worksh eet

. Som e sp readsh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction w ill reduce th e wid th an d/ or depth of th e worksh eet to fit on on e page.


your work.


If Jam es Dum ser worked 43 h ours, wh at would h is n et pay be?TIP12-6C: Rem em ber to update th e federal with h old in g tax to reflect Mr.

Dum ser’s gross pay.

Ca lcula ting Employer’s Pa yroll Ta xesStu d en t Na m e ______________________________________Date ___________________

Step 1 Read the in structions for Problem 13-6 in your textbook. Th is problem involves calculating em ployer’s payroll taxes.




Step 6 Type th e total gross earn in gs for th e first em ployee in cell A11 of th e spreadsh eet tem plate: 914.80. Th e spreadsh eet tem plate will au tom atically calculate th e Social Security tax, Medicare tax, federal un em ploym en t tax, an d state un em ploym en t tax for th e first em ployee usin g th e rates stated in your textbook.

Th e cells for Social Security tax, Med icare tax , federal un em ploym en t tax, an d state un em ploym en t tax are set u p to roun d th ese n um bers to two decim al p laces. Wh en you are typ in g data in th is spreadsh eet tem plate, alw ays rou n d n um bers to tw o decim al p laces wh en roun d in g is n ecessary.

Step 7 Type th e total gross earn in gs for th e rem ain in g em ployees. The Social Security tax, Medicare tax, federal un em ploym en t tax, and state un em ploym en t tax will be autom atically calculated for each em ployee.

To ch eck your w ork, m ult ip ly th e total gross earn in gs of each em ployee by th e tax rates given in your textbook.

Wh en you h ave typed all of the data, ask your teach er to ch eck your work.Step 8 Save th e spreadsheet usin g th e Save option from th e File m en u.Step 9 Prin t th e com pleted spreadsh eet.Step 10 Exit th e spreadsheet program .Step 11 In th e Close Option s win dow, select th e location where you would like to save

your work.


Wh at would the em ployer’s payroll taxes be on total gross earn in gs of $1,891.02, assum in g th e em ployee h ad not reach ed th e taxable earn in gs lim it?


Step 1 Read the in structions for Problem 15-5 in your textbook. Th is problem involves determ in in g th e due date, discoun t am oun t, an d am oun t to be paid for six in voices.




Step 6 Type th e invoice n um ber, in voice date, credit term s, an d in voice am oun t for the first in voice in th e appropriate cells of the spreadsh eet tem plate. Th e spreadsheet tem plate will autom atically calculate the due date, discoun t am oun t, an d am oun t to be paid for th e first invoice.

Type d ates as m on th / day in th e spreadsh eet tem plate. For exam ple, en ter March 5 as 3/ 5. Th e sp readsh eet will au tom atically con vert th is to a d ate form at.

Step 7 Check your work by ch ecking th e due date, discoun t am oun t, and am oun t to be paid again st your textbook, sin ce th e first invoice h as been com pleted for you.

Step 8 Con tinue to type the in voice n um ber, in voice date, credit term s, an d in voice am oun t for th e rem ain in g in voices. Th e due date, discoun t am oun t, an d am oun t to be paid will be autom atically calculated for each in voice.

Be carefu l w h en you type th e last in voice n um ber: 00985. Man y spreadsh eet p rogram s will n ot recogn ize th e two zeroes at th e begin n in g of th e n um ber an d will sh ow it in th e tem plate as 985. To sh ow th e two zeroes at th e begin n in g of th e n um ber, you m ust type an apostroph e before th e n um ber: '00985. Th e apostroph e in d icates th at th e n u m ber sh ould be sh own as a “label,” m ean in g th at all th e d igits will sh ow in clud in g th e begin n in g zeroes.

Wh en you have typed all of th e data, ask your teach er to ch eck your work.Step 9 Save th e spreadsh eet usin g th e Save option from th e File m en u.Step 10 Prin t th e com pleted spreadsh eet.Step 11 Exit th e spreadsheet program .Step 12 In th e Close Option s win dow, select th e location wh ere you would like to save

your work.


Suppose th e in voice am oun t for In voice #34120 were $2,001.03. Wh at would th e discoun t be? Wh at would th e am oun t to be paid be?


Step 1 Read the in structions for Problem 18-5 in your textbook. Th is problem involves com pletin g a ten -colum n work sh eet for In Beat CD Sh op.




Step 6 The trial balan ce amoun ts are given for you. Th e first adjustm en t that m ust be m ade is to adjust begin n in g m erch andise in ven tory of $86,897 to an ending balan ce of $77,872. To m ake th is adjustm en t, you must debit In com e Sum m ary an d credit Merch an d ise In ven tory for the difference between th e beginn in g an d ending m erch andise in ven tory am oun ts. Type th e In com e Sum m ary adjustm en t in cell E29 an d th e Merch an dise In ven tory adjustm en t in cell F14.

Notice th at, as you type th e adjustm en ts, th e balan ces for th e affected accoun ts in th e adjusted trial balan ce ch an ge accordin gly.

Step 7 Type th e rem ain in g adjustm en ts in to the Adjustm en ts section of th e spreadsheet tem plate. Wh en you h ave typed all of th e adjustm en ts, m ove th e cell poin ter in to th e Adjusted Trial Balance, Incom e Statem en t, an d Balan ce Sh eet section s of th e spreadsh eet tem plate. Notice th at th e am oun ts for th e Adjusted Trial Balan ce, In com e Statem en t, an d Balan ce Sh eet are autom atically en tered. Th e program also calculates the colum n totals and th e n et in com e for InBeat CD Sh op.

Wh en you h ave fin ished typin g th e adjustm en ts, ask your teacher to ch eck your work.

Step 8 Save th e spreadsheet usin g th e Save option from th e m enu.Step 9 Prin t th e com pleted spreadsh eet.

If your sp readsh eet is too wide to fit on an 8.5-in ch wid e p iece of paper, you can ch an ge your p rin t set t in gs to prin t th e worksh eet

. Som e spreadsh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction will reduce th e wid th an d/ or dep th of th e worksh eet to fit on on e page.

Step 10 Exit th e spreadsheet program .Step 11 In th e Close Option s win dow, select th e location where you would like to save

your work.


If Merchan dise Inven tory on August 31 were $80,123, wh at adjustm en ts would be m ade? What would be th e effect on n et in com e?


Step 1 Read the in structions for Problem 19-5 in your textbook. Th is problem involves preparing an in com e statem en t for Sun set Surfwear.


look like the one on th e next page.Step 5 Type your n am e an d today’s date in th e cells con tain ing th e an d

placeh olders. Step 6 Using the data provided in the work sh eet for Sun set Surfwear given in your

workin g papers, type th e in com e statem en t data in to th e spreadsh eet tem plate in th e cells con tain in g th e AMOUNT placeh olders. Th e spreadsh eet tem plate will autom atically calculate th e n et sales, cost of m erch an dise sold, gross profit on sales, total operatin g expenses, operatin g incom e, and n et in com e. Rem em ber, it is not necessary to en ter a com m a or the decim al poin t and en din g zeroes when en terin g th e am oun ts.

Step 7 Wh en you h ave fin ished typin g th e data for th e in com e statem en t, ask your teacher to ch eck your work.

Step 8 Save the spreadsh eet usin g th e Save option from th e File m en u.Step 9 Prin t th e com pleted spreadsh eet.Step 10 Exit th e spreadsheet program .Step 11 In the Close Option s win dow, select th e location wh ere you would like to save

your work.


If Sun set Surfwear’s m erch an dise in ven tory on Jan uary 1 was $100,000, wh at would the cost of m erch an dise sold be? Wh at would n et in com e be?


Step 1 Read the in structions for Problem 20-7 in your textbook. Th is problem involves preparing a ten -colum n work sheet an d th e en d-of-period fin an cial statem en ts for River’s Edge Can oe & Kayak.


look like the one shown below.


Step 6 Th e trial balan ce am oun ts in the work sh eet are given for you. The first adjustm en t that m ust be m ade is to adjust beginn ing m erch andise in ven tory of $25,000 to an en din g balan ce of $20,000. To m ake th is adjustm en t, you m ust debit In com e Sum m ary an d credit Merch an dise In ven tory for th e differen ce between th e begin n in g an d endin g m erch an dise in ven tory am oun ts. Type th e Incom e Sum m ary adjustm en t in cell E25 and th e Merch an dise In ven tory adjustm en t in cell F16. Rem em ber, it is n ot n ecessary to include a com m a or th e

decim al poin t an d two zeroes as part of th e am oun t. Notice th at, as you type th e adjustm en ts, the balances for th e affected accoun ts in th e adjusted trial balan ce change accordingly.

Step 7 Type the rem ain in g adjustm en ts in to the Adjustm en ts section of the work sh eet. Wh en you have typed all of th e adjustm en ts, m ove the cell poin ter in to the Adjusted Trial Balan ce, In com e Statem en t, an d Balan ce Sheet sections of the work sh eet. Notice th at the am oun ts for th e Adjusted Trial Balan ce, In com e Statem en t, an d Balan ce Sh eet are autom atically en tered. The program also calculates th e colum n totals an d the n et in com e for River’s Edge Can oe & Kayak.

Step 8 Now scroll down below th e work sh eet and look at the incom e statem en t, statem en t of retained earn in gs, and balan ce sh eet for River’s Edge Can oe & Kayak. Notice th e finan cial statem en ts are already com pleted. Th is is because th e spreadsh eet tem plate in cludes form ulas th at autom atically pull in form ation from th e filled-in work sheet to com plete th e financial statem en ts.

Step 9 Now scroll down below th e balan ce sheet an d com plete th e closin g en tries in th e gen eral journal. The accoun t n am es and postin g references are given for you.

Step 10 Scroll down below th e closing en tries and look at th e post-closin g trial balan ce. Th e am oun ts are autom atically calculated usin g form ulas.

Wh en you have fin ished the problem , ask your teach er to check your work.Step 11 Save th e spreadsh eet usin g th e Save option from th e m enu.Step 12 Prin t th e com pleted spreadsh eet.

If your spreadsh eet is too w ide to fit on an 8.5-in ch wide p iece of paper, you can ch an ge your prin t settin gs to prin t th e worksh eet

. Som e spread sh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction w ill reduce th e wid th an d/ or dep th of th e worksh eet to fit on on e page.Wh en p rin tin g a lon g spreadsh eet w ith m ultip le parts, you m ay wan t to in sert p age breaks between th e section s so th at each on e begin s p rin tin g at th e top of a n ew page. Page breaks h ave already been en tered in to th is spreadsh eet tem plate. Ch eck your program ’s Help file for in struction s on h ow to en ter page breaks.


your work.


If un expired in suran ce on Decem ber 31 were $2,500, what adjustm en ts would be m ade? What would n et in com e be? How would th is affect endin g Retain ed Earn in gs?


Step 1 Read the in structions for Problem 21-8 in your textbook. Th is problem involves preparing a statem en t of stockh olders’ equity and a balance sh eet.




Step 6 Type th e m issing am oun ts in th e statem en t of stockh olders’ equity in the cells con tain in g th e AMOUNT placeh olders. Rem em ber, it is not n ecessary to add a com m a or th e decim al poin t and en din g zeroes. Th e total for each line will be autom atically com puted.

To type a n egative n um ber, p recede th e am oun t typed by a m in us sign . Th e spread sh eet will au tom atically form at th e n um ber as n egative usin g paren th eses.

Step 7 Now scroll down below th e statem en t of stockh olders’ equity an d look at th e balan ce sh eet. Note th e am oun ts have already been com puted. Th e spreadsh eet autom atically pulls in form ation from th e statem en t of stockholders’ equity to com plete the balan ce sheet.

Wh en you h ave fin ished en terin g th e am oun ts, ask your teach er to check your work.

Step 8 Save th e spreadsheet usin g th e Save option from th e m enu.Step 9 Prin t th e com pleted spreadsh eet.Step 10 Exit th e spreadsheet program .Step 11 In th e Close Option s win dow, select th e location where you would like to save

your work. If your spreadsh eet is too w ide to fit on an 8.5-in ch wid e p iece of paper, you can ch an ge your p rin t set t in gs to prin t th e worksh eet

. Som e spreadsh eet application s also allow you to ch oose a “fit to page” op tion . Th is fun ction will reduce th e wid th an d/ or dep th of th e worksh eet to fit on on e page.


If n et in com e was $511,000, h ow would th is affect retain ed earn ings?


Step 1 Read the in structions for Problem 25-6 in your textbook. Th is problem involves calculating gross profit on sales usin g each of th e four in ven tory costing m eth ods.




Step 6 For each of the four in ven tory costin g m eth ods, type th e followin g data in th e appropriate cells of th e spreadsh eet tem plate: n et sales, purch ases available for sale, an d cost of en ding in ven tory. Th e spreadsh eet will autom atically calculate th e cost of m erch andise sold and the gross profit on sales for each inven tory costin g m ethod.

Wh en you h ave typed all of th e data, ask your teach er to ch eck your work.Step 7 Save the spreadsh eet usin g th e Save option from th e File m en u.Step 8 Prin t th e com pleted spreadsh eet.Step 9 Exit th e spreadsheet program .Step 10 In the Close Option s win dow, select th e location wh ere you would like to save

your work.


If th e cost of en din g in ven tory usin g th e last-in , first-out m eth od was $21,399.13, wh at would gross profit on sales be?

Ca lcula ting the Percenta ge of a Pa rtner’s Ca pita l InvestmentStu d en t Na m e ______________________________________Date ___________________

Step 1 Read the in structions for Problem 27-5 in your textbook. Th is problem involves calculating a partn er’s percen tage own ersh ip in a partnersh ip.




Step 6 Type each partn er’s in dividual in vestm en t an d total partn ersh ip in vestm en t in th e appropriate cells of th e spreadsh eet tem plate. Th e spreadsheet tem plate will autom atically calculate th e partn er’s percen tage own ersh ip.

Wh en you h ave typed all of th e data, ask your teach er to ch eck your work.Step 7 Save the spreadsh eet usin g th e Save option from th e File m en u.Step 8 Prin t th e com pleted spreadsh eet.Step 9 Exit th e spreadsheet program .Step 10 In the Close Option s win dow, select th e location wh ere you would like to save

your work.


If Partner 1’s individual in vestm en t was $50,000 and the total partn ersh ip in vestm en t was $200,000, wh at would th e partn er’s percen tage of th e total own ersh ip be?


Step 1 Read the in structions for Problem 28-4 in your textbook. Th is problem involves preparing an in com e statem en t an d a balan ce sh eet for a partn ersh ip.




Step 6 Joy Webster an d Diana Ruiz sh are in th e partn ersh ip equally. Th erefore, each h as a 50% sh are of th e profits. Type Webster’s an d Ruiz’s partnersh ip percen tage in cells B10 an d B11: 50.

Cells B10 an d B11 are form atted for percen tages. Th erefore, it is n ot n ecessary to type a percen t sign after th e n um ber, n or is it n ecessary to type th e n um ber as a decim al.

Step 7 Now type net in com e in cell C13: 5780. Rem em ber, it is n ot n ecessary to type a com m a or th e decim al poin t an d en din g zeroes. Th e division of n et in com e for Webster an d Ruiz will be autom atically calculated.

Step 8 Now scroll down below th e division of n et in com e an d look at th e partial balan ce sh eet. The partn ers’ equity section h as been com pleted.

Wh en you h ave fin ished th e problem , ask your teach er to ch eck your work.Step 9 Save th e spreadsheet usin g th e Save option from th e File m en u.Step 10 Prin t th e com pleted spreadsh eet.Step 11 Exit th e spreadsheet program .Step 12 In th e Close Option s win dow, select th e location where you would like to save

your work.


If Webster’s partnersh ip percen tage was 60% an d Ruiz’s partnersh ip percen tage was 40%, wh at would the division of net in com e be? How would th is affect each partn er’s en ding capital?


Step 1 Read the in structions for Problem 28-9 in your textbook. Th is problem involves preparing the en d-of-period finan cial statem en ts for a partn ersh ip.




Step 6 Rich ard Sm ooth an d Carrie Overh ill agree to divide R & C Roofing’s n et incom e or loss on th e followin g basis: Sm ooth , 3/4; Overh ill, 1/4. Therefore, Sm ooth h as a 75% partn ersh ip percen tage, an d Overh ill h as a 25% partn ersh ip percen tage. Type Sm ooth ’s and Overh ill’s partn ersh ip percen tages in cells B9 an d B10.

Cells B9 an d B10 are form atted for percen tages. Th erefore, it is n ot n ecessary to type a percen t sign after th e n um ber, n or is it n ecessary to type th e n um ber as a decim al.

Step 7 Now scroll down below th e partn ersh ip percen tages and look at th e in com e statem en t, statem en t of ch an ges in partners’ equity, an d balan ce sh eet for R & C Roofin g. Notice th e financial statem en ts are already com pleted, usin g in form ation from th e work sheet in your workin g papers and from th e partn ersh ip percen tages you typed in cells B9 an d B10.

Wh en you have fin ished the problem , ask your teach er to check your work.Step 8 Save th e spreadsh eet usin g th e Save option from th e File m en u.Step 9 Prin t th e com pleted spreadsh eet.

Wh en p rin tin g a lon g spreadsh eet with m ult ip le parts, you m ay wan t to in sert p age breaks between th e section s so th at each on e begin s p rin tin g at th e top of a n ew page. Page breaks h ave already been en tered in to th is spreadsh eet tem plate. Ch eck your program ’s Help file for in struction s on h ow to en ter page breaks.


your work.


If Sm ooth and Overh ill shared in th e partn ersh ip equally, wh at would th e division of net in com e be? How would th is affect each partn er’s endin g capital?


Step 1 Read the in structions for Addition al Rein forcem en t Problem 3A in your textbook. Th is problem in volves en terin g transaction s in th e accoun tin g equation .

Step 2 Go to th e Glen coe Accoun ting On lin e Learn in g Cen ter at glen coe.com .Step 3 From th e Studen t Cen ter m en u, click on Spreadsh eet Tem plates.Step 4 Select tem plate 3A from th e Appen dix G drop-down list. Th e tem plate should



Step 6 In th e first tran saction , Ms. Won g, th e own er of the busin ess, opened a ch eckin g accoun t for th e busin ess. Rem em ber from Ch apter 2 that two parts of th e accoun ting equation are affected by th is tran saction : Cash and Pam ela Won g, Capital. Cash is in creasin g, and Pam ela Won g, Capital, is in creasing. To record th is transaction in the spreadsheet tem plate, m ove th e cell poin ter to cell B12 an d type 48000.

Rem em ber, to type data in to th e cell, you m ust first key th e data an d th en p ress <En ter>. Do not type a dollar sign or a com m a wh en you en ter th e data—th e spreadsh eet tem plate will au tom atically form at th e data wh en it is en tered .

Step 7 Next, m ove the cell poin ter to cell J12. Type 48000 in cell J12 to record the in crease in Pam ela Wong, Capital. Again , do in clude a dollar sign or a com m a as part of th e cell en try—th e spreadsh eet tem plate will autom atically form at th e data when it is en tered. Move th e cell poin ter to cell J24. Notice th at th e spreadsh eet autom atically calculates th e balan ce in each accoun t as you type th e data.

Step 8 To check your work, look at rows 27 th rough 31 in colum n D. Total assets equal $48,000. Total liabilities plus own er’s equity also equal $48,000. The accoun tin g equation is in balance.

Step 9 An alyze the rem ain in g tran saction s in Problem 3A an d type the appropriate data in to th e spreadsh eet tem plate.

To d ecrease an accoun t balan ce, p recede th e am oun t typed by a m in us sign . For exam p le, to decrease Cash in Ban k by $1,500, type –1500 in th e Cash in Ban k colum n .

Check th e totals at th e bottom of th e spreadsh eet after each tran saction h as been en tered. Rem em ber, total assets sh ould always equal total liabilities plus own er’s equity. If the accoun ting equation becom es out of balan ce, ch eck your work closely to fin d th e error, and m ake an y n ecessary correction s. Wh en you h ave en tered all of th e tran sactions, ask your teach er to ch eck your work.

Step 10 Save th e spreadsh eet usin g th e Save option from th e File m en u.Step 11 Prin t th e com pleted spreadsh eet.Step 12 Exit th e spreadsheet program .Step 13 In th e Close Option s win dow, select th e location wh ere you would like to save

your work.

Com plete th e Analyze activity for Problem 3A from your textbook.

If Ms. Wong paid $550 cash for a n ew prin ter for the business, wh at would the Cash in Ban k balan ce be?


Step 1 Read the in structions for Problem 23A in your textbook. Th is problem involves preparing a depreciation sch edule.

Step 2 Go to th e Glen coe Accoun ting On lin e Learn in g Cen ter at glen coe.com .Step 3 From th e Studen t Cen ter m en u, click on Spreadsh eet Tem plates.Step 4 Select tem plate 23A from th e Appendix G drop-down list. It sh ould look like

th is:


Step 6 Type th e cost, origin al book value, and salvage value of th e delivery truck in th e cells con tain in g th e AMOUNT placeh olders. Th e an nual depreciation , accum ulated depreciation , an d book value for each year will be autom atically com puted. Wh en you are don e, ask your teach er to check your work.

Step 7 Save the spreadsh eet using the Save option from th e File menu. Step 8 Prin t th e com pleted spreadsh eet.Step 9 Exit th e spreadsheet program .Step 10 In the Close Option s win dow, select th e save location .


If th e salvage value was $1,500, wh at would th e an nual depreciation for each year be?


Step 1 Read the in structions for Problem 26A in your textbook. Th is problem in volves determ in in g th e m aturity date an d in terest expen se to be paid in th e curren t an d followin g year for ten notes.

Step 2 Go to th e Glen coe Accoun ting On lin e Learn in g Cen ter at glen coe.com .Step 3 From th e Studen t Cen ter m en u, click on Spreadsh eet Tem plates.Step 4 Select tem plate 26A from th e drop-down list. Th e tem plate should look like th e

one shown below.

Step 5 Type your n am e an d today’s date in th e cells con tain ing th e an d placeholders.

Step 6 Type th e am oun t an d in terest rate for the first note in th e appropriate cells of th e spreadsh eet tem plate. Th e spreadsh eet tem plate will autom atically calculate th e in terest for th e curren t year an d followin g year for th e first n ote.

Wh en en terin g th e in terest rates, it is n ot n ecessary to type a percen t sign after th e n um ber, n or is it n ecessary to type th e n um ber as a d ecim al. For exam ple, en ter 9% as 9 in cell D11. Th e spreadsh eet will au tom atically form at th is as a percen t.

Step 7 Con tinue to type the am oun t an d in terest rate for th e rem ain in g n otes. Th e curren t year in terest an d following year in terest will be autom atically calculated for each n ote. Wh en you have typed all of the data, ask your teacher to ch eck your work.

Step 8 Save the spreadsh eet usin g th e Save option from th e File m en u.Step 9 Prin t th e com pleted spreadsh eet.Step 10 Exit th e spreadsheet program .Step 11 In the Close Option s win dow, select th e location wh ere you would like to save

your work.


Suppose th e n ote am oun t for Note #10 was $3,333. What would th e curren t year in terest be? Wh at would the followin g year in terest be?

$2,500 is owed to creditors after Tran saction 10.

Th e balance in th e Juan ita Ortega, Capital accoun t would be $56,650.

Th e en din g balan ce of th e Com puter Equipm en t accoun t is $0.00.

Th e balance in th e Cash in Ban k accoun t would be $48,625.

Th e sum of own er’s equity is $44,611.

Assets = $92,216.

Th e perm anen t accoun ts with n orm al debit balan ces are Cash in Ban k, A/R Helen Katz, A/R Polk & Co., Office Suppies, Office Equipm en t, an d Cam ping Equipm en t.

Wildern ess Ren tals will h ave a n et loss of $471.

Th e total owner’s equity is $42,834.

Prepa ring a Sta tement of Cha nges in Owner’s Equity

Salaries Expen se was th e largest expen se for th e busin ess durin g th e period.

Th e begin n in g capital balan ce would be $15,082.

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Advertisin g Expen se is the greatest expen diture for th e period of $3000.

Job Con nect’s n et in com e would be $800. Job Con n ect’s en din g capital would be $21,400.

Th e balance in th e Miscellan eous Expense accoun t is $70.

Jam es Dum ser h ad th e greatest am oun t with h eld for federal in com e tax for th e week, $29.00.

If Jam es Dum ser worked 43 h ours, h is net pay would be $222.31.

Ca lcula ting Employer’s Pa yroll Ta xes

Th e m axim um federal unem ploym en t tax is 6.2%. Em ployers m ay deduct up to 5.4% of th e state unem ploym en t taxes from federal un em ploym en t taxes. Most em ployees pay a federal tax of .8% (6.2% - 5.4%), as a result.

With gross earn in gs of $1,891.02, Social Security tax would be $117.24, Medicare tax would be $27.42, federal un em ploym en t tax would be $15.13, an d state un em ploym en t tax would be $102.12.

Sun set Surfwear will save $271.63 if all discoun ts are taken .

Th e discoun t would be $40.02. The am oun t to be paid would be $1,961.01.

After th e adjustm en ts were m ade on the work sh eet, Salaries Expen se h ad th e h igh est balance.

Th e adjustm en ts would be a debit to In com e Sum m ary of $6,774 an d a credit to Merch an dise In ven tory of $6,774. Net in com e would in crease by $2,251.

Purchases Returns an d Allowan ces is larger for the period.

Th e cost of m erch an dise sold would be $93,022. Net in com e would be $4,715.

Yes, th e com pany m ade a profit of $41,285.00 for th e year.

Th e adjustm en ts would be a debit to In suran ce Expense for $500 and a credit to Prepaid In suran ce for $500. Net in com e would be $41,985. Th is would increase Retained Earn in gs by $700.

Total stockh olders’ equity on Decem ber 31 is $2,402,500.

Retained Earn in gs would in crease by $86,000 to $938,500.

Th e FIFO m eth od resulted in th e largest gross profit on sales.

Gross profit on sales would be $17,652.74.

Ca lcula ting the Percenta ge of a Pa rtner’s Ca pita l Investment

In partn ersh ip 1, Partn er A’s sh are is 0.3333 or 1/3. Th e oth er partn ers con trol 0.6667 or 2/3. In partn ersh ip 4, Partn er A’s share is 0.75 or 3/4. Th e oth er partn ers con trol 0.25 or 1/4 .

Partn er 1’s percen tage of th e total ownersh ip would be 25%.

Th e en din g balan ce for Webster, Capital = $7,090. Th e en ding balan ce for Ruiz, Capital = $7,190.

Webster’s share of n et in com e would be $3,468. Ruiz’s sh are of n et in com e would be $2,312. Webster’s endin g capital would in crease by $578. Ruiz’s en din g capital would decrease by $578.

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If Sm ooth or Overh ill h ad n ot m ade with drawals, th e total equity balan ce at year en d would h ave been $86,132.

Each partn er’s sh are of n et incom e would be $13,178. Sm ooth ’s en din g capital would decrease by $6,589 an d Overh ill’s en din g capital would in crease by $6,589.

(A) Th e total am oun t of equipm en t assets is $8,000. (B) The total am oun t of assets is $49,800. (C) Total liabilities an d own er’s equity is $49,800. (D) Yes, the accoun tin g equation is in balance.

Cash in Bank would be $39,950.

$78,000 in depreciation expense will be recorded over th e useful life of th e delivery truck. The Accum ulated Depreciation —Delivery Truck accoun t will sh ow all th e depreciation recorded for th is asset over its useful life.

2004, $6,450; 2005 an d 2006, $25,800; an d 2007, $19,350

Th ree of the n otes have m ore in terest applied to th e followin g year th an th e curren t year. Th e notes m aturin g on February 3, March 10, an d March 1 h ave m ore in terest in th e followin g year.

Th e curren t year in terest would be $111.10. The followin g year in terest would be $88.88.

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