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. Instructions, Page 1 of 10, 6/20/2013, 6:59 AM

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

Instructions, Page 2 of 10, 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
E6-2 (Simple and Compound Interest Computations) Lyle OKeefe invests $30,000 at 8% annual interest, leaving the money 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money. Instructions: (a) Compute the amount Lyle would withdraw assuming the investment earns simple interest. Simple interest of $30,000 8% per year 8 years = Principal Total withdrawn

$19,200 $30,000 $49,200

(b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. Interest compounded annuallyFuture value of 1 @ 8% for 8 periods = 1.85093 Amount invested: $30,000 Total withdrawn: $55,527.91 (c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded semi-annually. Interest compounded annuallyFuture value of 1 @ 4% for 16 periods = 1.87298 Amount invested: $30,000 Total withdrawn: $56,189.44

153010875.xlsx.ms_office, Exercise 6-2 Solution, Page 3 of 10, 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
E6-2 (Simple and Compound Interest Computations) Lyle OKeefe invests $30,000 at 8% annual interest, leaving the money 8 years. At the end of the 8 years, Lyle withdrew the accumulated amount of money. Instructions: (a) Compute the amount Lyle would withdraw assuming the investment earns simple interest. Text Title Text Title Text Title

Formula Amount Formula

(b) Compute the amount Lyle would withdraw assuming the investment earns interest compounded annually. Text Title Formula Text Title Amount Text Title Formula (c) Compute the amount Lyle would withdraw assuming the investment earns interest compounded semi-annually. Text Title Formula Text Title Amount Text Title Formula

153010875.xlsx.ms_office, Exercise 6-2, 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
E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel formula, answer each of the following questions: (Each case is independent of the others.) (a) What is the future value of $9,000 at the end of compounded interest? The future value of $9,000 at 8% interest for 5 periods is: (b) What is the present value of $9,000 discounted at 11% The future value of $9,000 at 11% interest for 8 periods is: 5 periods at 8% $13,223.95 due 8 periods hence, $3,905.34 $9,000 each made at $285,952.34

(c) What is the future value of 15 periodic payments of the end of each period and compounded at 10% ? The future value of $9,000 payments at 10% interest for 15 periods is:

(d) What is the present value of $9,000 to be received at the end of each of 20 periods, discounted at 5% compound interest? The present value of $9,000 payments at 5% interest for 20 periods is: $112,159.89 Note: Students using the tables or other sources of present and future values may have values slightly different due to rounding.

153010875.xlsx.ms_office, Exercise 6-3 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
E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel formula, answer each of the following questions: (Each case is independent of the others.) (a) What is the future value of compounded interest? Text as appropriate. (b) What is the present value of discounted at 11% Text as appropriate. (c) What is the future value of 15 the end of each period and compounded at Text as appropriate. (d) What is the present value of 20 periods, discounted at Text as appropriate. $9,000 at the end of 5 periods at 8% Fomula $9,000 due 8 periods hence, Formula periodic payments of 10% ? $9,000 each made at Formula $9,000 5% to be received at the end of each of compound interest? Formula

Note: Students using the tables or other sources of present and future values may have values slightly different due to rounding.

153010875.xlsx.ms_office, Exercise 6-3, Page 6 of 10, 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
P6-2 (Various Time Value Situations) Using the appropriate interest table or Excel formula, provide the solution to each of the following four questions by computing the unknowns. (a) What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually? The payment that must be made to accumulate $90,000 over 8 periods at 8% interest is: $8,461.33

(b) Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his 65 th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 12% interest compounded annually? The annual deposit that must be made to accumulate $500,000 over 25 periods at 12% interest is: (c) Diane Ross has $20,000 to invest today at How many years will it take her to accumulate enough to liquidate the debt? 9% to pay a debt of $3,348.20 $47,347

The duration that the deposit must remain in place to accumulate to $47,347 at 9% interest is: (d) Cindy Houston has a $27,600 debt that she wishes to repay in today; she has $19,553 that she intends to invest for the 4 will she need to earn annually in order to accumulate enough to pay the debt?

10

4 years from years. What rate of interest

The interest that the deposit must earn while in place to accumulate from $19,553 to $27,600 over 4 periods is: 9.00%

153010875.xlsx.ms_office, Problem P6-2 Solution, Page 7 of 10, 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
P6-2 (Various Time Value Situations) Using the appropriate interest table or Excel formula, provide the solution to each of the following four questions by computing the unknowns. (a) What is the amount of the payments that Ned Winslow must make at the end of each of 8 years to accumulate a fund of $90,000 by the end of the eighth year, if the fund earns 8% interest, compounded annually? Text Title Formula

(b) Robert Hitchcock is 40 years old today and he wishes to accumulate $500,000 by his 65 th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to accumulate this amount by making equal deposits on his fortieth through sixty-fourth birthdays. What annual deposit must Robert make if the fund will earn 12% interest compounded annually? Text Title (c) Diane Ross has $20,000 to invest today at How many years will it take her to accumulate enough to liquidate the debt? Text Title (d) Cindy Houston has a $27,600 debt that she wishes to repay in today; she has $19,553 that she intends to invest for the 4 will she need to earn annually in order to accumulate enough to pay the debt? Text Title Formula 9% to pay a debt of Formula $47,347

Formula 4 years from years. What rate of interest

153010875.xlsx.ms_office, Problem P6-2, 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
P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes all 46% the money today, the state and the federal governments will deduct taxes at a rate of immediately. (2) Alternatively, the lottery offers Howie a payout of 20 equal payments of $36,000 with the first payment occurring when Howie turns in the winning ticket. Howie will be taxed on each of these payments at a rate of 25% Instructions: Assuming Howie can earn an 8% rate of return (compounded annually) on any money during this period, which pay-out option should he choose? Step 1: Determine of single payment cash yield: Step 2: Determine the present value of an annuity of $36,000 less 25% in taxes for 20 periods. Cash payment is: $36,000 Tax burden is: 25% Annual cash yield is: $27,000 The present value of an annuity of $27,000 for 20 periods at 8% interest is: Long should choose the annuity payout; its present value is $16,297 greater. $286,297.18 $270,000

Note: Due to significant digits of formulas, calculators, and tables, minor value differences may occur.

153010875.xlsx.ms_office, Problem P6-4 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
P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a $500,000 prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes all 46% the money today, the state and the federal governments will deduct taxes at a rate of immediately. (2) Alternatively, the lottery offers Howie a payout of 20 equal payments of $36,000 with the first payment occurring when Howie turns in the winning ticket. Howie will be taxed on each of these payments at a rate of 25% Instructions: Assuming Howie can earn an 8% rate of return (compounded annually) on any money during this period, which pay-out option should he choose? Step 1: Determine of single payment cash yield: Step 2: Determine the present value of an annuity. Cash payment is: Tax burden is: Annual cash yield is: Text Title Enter text answer here. Formula

Amount Percentage Formula Formula

Note: Due to significant digits of formulas, calculators, and tables, minor value differences may occur.

153010875.xlsx.ms_office, Problem P6-4, Page 10 of 10, 6/20/2013, 6:59 AM