Instructions for the Microsoft Excel Templates by Rex A Schildhouse

Be advised, the template workbooks and worksheets are not protected. Overtyping any data may remove it.
Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text. You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed on the top of each page if the template requires more than one page. Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly of multiple pages. If more than one page is required by the template, manual page breaks have been set to provide consistent presentation. All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the appropriate cells. In general, the yellow highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account title(s), values, memorandum appropriate to the entry, or text answers to questions. And information or data which may be required by the solution will be entered in cells with borders to help identify them. Where a yellow highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01, 2012, in the format set in the template. Where a yellow highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously entered. Where a yellow highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is provided and you can use the "look to" formula to reference the appropriate account title without typing it. Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be acceptable. Where a yellow highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of the formatting found in the templates to meet your desires. Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel.

Where a yellow highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference, "=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial text provided for Microsoft Excel. Where a yellow highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed over. Where a yellow highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in General Journal number six." The print area is defined to fit onto 8 1/2" 11" sheets in portrait or landscape mode as required. Margins are generally set to no less than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to reformat the margins through Page Setup. The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the View menu and selecting "Unfreeze Panes" under "Freeze Panes." When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400. Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative value if both cells E10 and E11 contain positive values. Microsoft Office and Microsoft Excel are products of, and copyrighted by, Microsoft Corporation, One Microsoft Way, Redmond, Washington 98052-6399

Solution Name: Date: Instructor: Course: Intermediate Accounting, 14th Edition by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse
E16-1 (Issuance and Conversion of Bonds) Instructions: For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Coyle Corp. issued $10,000,000 par value 10% convertible bonds at 99 If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 Expenses of issuing the bonds were $70,000 Cash ($10,000,000 0.99) Discount on Bonds Payable Bonds Payable Unamortized Bond Issue Costs Cash 2. Lambert Company issued $10,000,000 par value One detachable stock warrant was issued with each of issuance, the warrants were selling for Cash ($10,000,000 0.98) Discount on Bonds Payable Bonds Payable Paid-in CapitalStock Warrants 9,900,000 100,000 10,000,000 70,000 70,000 10% $100 $4 9,800,000 600,000 10,000,000 400,000 $9,800,000 400,000 $9,400,000 bonds at 98 par value bond. At the time

Value of bonds plus warrants ($10,000,000 0.98) Value of warrants ($4.00 100,000 shares) Value of bonds

3. Sepracor, Inc. called its convertible debt in 2012. Assume the following related to the transaction: 11% $10,000,000 par value bonds were converted into 1,000,000 The shares of $1 par value common stock on July 1, 2012. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. Debt Conversion Expense Bonds Payable Discount on Bonds Payable Common Stock Paid-in Capital in Excess of Par* Cash * ($10,000,000 - $55,000 - $1,000,000) 75,000 10,000,000 55,000 1,000,000 8,945,000 75,000

153010931.xlsx.ms_office, Exercise 16-1 Solution, Page 3 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
E16-1 (Issuance and Conversion of Bonds) Instructions: For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Coyle Corp. issued $10,000,000 par value 10% convertible bonds at 99 If the bonds had not been convertible, the company's investment banker estimates they would have been sold at 95 Expenses of issuing the bonds were $70,000 Account Title Account Title Account Title Account Title Account Title 2. Lambert Company issued $10,000,000 par value One detachable stock warrant was issued with each of issuance, the warrants were selling for Account Title Account Title Account Title Account Title Text title Text title Text title Amount Amount Amount Amount Amount 10% $100 $4 Amount Amount Amount Amount Formula Formula Formula bonds at 98 par value bond. At the time

3. Sepracor, Inc. called its convertible debt in 2012. Assume the following related to the transaction: 11% $10,000,000 par value bonds were converted into 1,000,000 The shares of $1 par value common stock on July 1, 2012. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method. Account Title Account Title Account Title Account Title Account Title Account Title * Calculation as desired. Amount Amount Amount Amount Formula Amount

153010931.xlsx.ms_office, Exercise 16-1, Page 4 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
E16-15 (Weighted-Average Number of Shares) Gogean Inc. uses a calendar year for financial 9,000,000 $10 shares of reporting. The company is authorized to issue par common stock. At no time has Gogean issued any potentially dilutive securities. Listed below is a summary of Gogeans common stock activities. 1. Number of common shares issued and outstanding at December 31, 2011 2,400,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2012 240,000 3. Shares issued for cash on March 31, 2013 2,000,000 Number of common shares issued and outstanding at December 31, 2013 4,640,000 4. A 2-for-1 stock split of Gogeans common stock took place on March 31, 2014 Instructions: (a) Compute the weighted average number of common shares used in computing earnings per common share for 2012 on the 2013 comparative income statement. Jan. 1, 2012Sept. 30, 2012 (2,400,000 9/12) Retroactive adjustment for stock dividend Jan. 1, 2012Sept. 30, 2012, as adjusted Oct. 1, 2012Dec. 31, 2012 (2,640,000 3/12) Shares outstanding 1,800,000 110% 1,980,000 660,000 2,640,000

Another way to view this transaction is that the 2,400,000 shares at the beginning of the year must be restated for the stock dividend regardless of where in the year the stock dividend occurs. (b) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2013 comparative income statement. Jan. 1, 2013Mar. 31, 2013 (2,640,000 3/12) Apr. 1, 2013Dec. 31, 2013 (4,640,000 9/12) Shares outstanding 660,000 3,480,000 4,140,000

(c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2013 on the 2014 comparative income statement. 2013 weighted-average number of shares previously computed Retroactive adjustment for stock split Shares outstanding 4,140,000 2 8,280,000

(d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2014 comparative income statement. 1,160,000 2 2,320,000 6,960,000 Shares outstanding 9,280,000 Another way to view this transaction is that the 4,640,000 shares at the beginning of the year must be restated for the stock split regardless of where in the year the stock split occurs. Jan. 1, 2014Mar. 31, 2014 (4,640,000 3/12) Retroactive adjustment for stock split Jan. 1, 2014Mar. 31, 2014, as adjusted Apr. 1, 2014Dec. 31, 2014 (9,280,000 9/12)

153010931.xlsx.ms_office, Exercise 16-15 Solution, Page 5 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
E16-15 (Weighted-Average Number of Shares) Gogean Inc. uses a calendar year for financial 9,000,000 $10 shares of reporting. The company is authorized to issue par common stock. At no time has Gogean issued any potentially dilutive securities. Listed below is a summary of Gogeans common stock activities. 1. Number of common shares issued and outstanding at December 31, 2011 2,400,000 2. Shares issued as a result of a 10% stock dividend on September 30, 2012 240,000 3. Shares issued for cash on March 31, 2013 2,000,000 Number of common shares issued and outstanding at December 31, 2013 4,640,000 4. A 2-for-1 stock split of Gogeans common stock took place on March 31, 2014 Instructions: (a) Compute the weighted average number of common shares used in computing earnings per common share for 2012 on the 2013 comparative income statement. Text title Text title Text title Text title Shares outstanding Formula Percentage Formula Formula Formula

(b) Compute the weighted average number of common shares used in computing earnings per common share for 2013 on the 2013 comparative income statement. Text title Text title Shares outstanding Formula Formula Formula

(c) Compute the weighted average number of common shares to be used in computing earnings per common share for 2013 on the 2014 comparative income statement. Text title Text title Shares outstanding Formula Number Formula

(d) Compute the weighted average number of common shares to be used in computing earnings per common share for 2014 on the 2014 comparative income statement. Text title Text title Text title Text title Shares outstanding Number Number Formula Formula Formula

153010931.xlsx.ms_office, Exercise 16-15, 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
P16-2 (Entries for Conversion, Amortization, and Interest of Bonds) Volker Inc. issued $2,500,000 of convertible 10 -year bonds on July 1, 2012. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000 , which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2013, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion any accrued interest on bonds being converted is paid in cash. Note: Due to rounding and significant digits, there may be slight number differences. Instructions: Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates: (Round to the nearest dollar.) (a) August 1, 2013. (Assume the book value method is used.) Aug 1, 13 250,000 Bonds Payable 4,815 Discount on Bonds Payable (Schedule 1) 200,000 Common Stock (8 shares 250 bonds $100 par) Paid-in Capital in Excess of Par 45,185 [($250,000 - $4,815) - $200,000) (To record the issuance of 2,000 shares of common stock in exchange for $250,000 of bonds and the write-off of the discount on bonds payable) *($54,000 1/10) (107/120) = $4,815 **($250,000 $4,815) $200,000 = $45,185 Aug 1, 13 2,500 Interest Payable Cash [$250,000 12% (1/12)] (To record payment in cash of interest accrued on bonds converted as of August 1, 2013)

2,500

(b) August 31, 2013. Aug 31, 13 405 Interest Expense Discount on Bonds Payable (Schedule 1) (To record amortization of one months discount on $2,250,000 of bonds) *($54,000 90%) (1/120) = $405 Aug 31, 13 22,500 Bond Interest Expense Interest Payable [$2,250,000 12% (1/12)] (To record accrual of interest for August on $2,250,000 of bonds at 12%)

405

22,500

153010931.xlsx.ms_office, Problem 16-2 Solution, Page 7 of 12, 6/20/2013, 6:59 AM

Solution Name: Date: Instructor: Course: th (c) December 31, 2013, including closing entries for end-of-year. Intermediate Accounting , 14 Edition by Kieso, Weygandt, and Warfield
(Same as August 31, 2013, and the following closing entry) Dec 31, 13 Income Summary Interest Expense (To close expense account) Schedule 1 - Monthly Amortization Schedule Unamortized discount on bonds payable: Amount to be amortized over 120 months Amount of monthly amortization ($54,000 / 120) Amortization for 13 months to Jul 31, 2013, ($450 13) Balance unamortized Jul 31, 2013, ($54,000 $5,850) 10% applicable to bonds converted Balance Aug 1, 2013 Remaining monthly amortization over remaining 107 months 292,675 292,675

$54,000 450 5,850 48,150 4,815 43,335 $405

Schedule 2 Interest Expense Schedule Amortization of bond discount charged to bond interest expense in 2013 would be as follows: 7 months $450 $3,150 5 months $405 2,025 Total $5,175 Interest on Bonds: $2,500,000 12.00% Amount per month ($300,000 / 12 months) 12% on $2,250,000 Amount per month ($270,000 / 12 months) Interest for 2013 would be as follows: 7 months $25,000 5 months $22,500 Total Total interest Amortization of discount Cash interest paid Bond interest expense

$300,000 25,000 270,000 $22,500 $175,000 112,500 $287,500

$5,175 287,500 $292,675

153010931.xlsx.ms_office, Problem 16-2 Solution, Page 8 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
P16-2 (Entries for Conversion, Amortization, and Interest of Bonds) Volker Inc. issued $2,500,000 of convertible 10 -year bonds on July 1, 2012. The bonds provide for 12% interest payable semiannually on January 1 and July 1. The discount in connection with the issue was $54,000 , which is being amortized monthly on a straight-line basis. The bonds are convertible after one year into 8 shares of Volker Inc.'s $100 par value common stock for each $1,000 of bonds. On August 1, 2013, $250,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly and paid as due. At the time of conversion any accrued interest on bonds being converted is paid in cash. Note: Due to rounding and significant digits, there may be slight number differences. Instructions: Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following dates: (Round to the nearest dollar.) (a) August 1, 2013. (Assume the book value method is used.) Aug 1, 13 Account Title Account Title Account Title Account Title Enter entry memorandum. Amount Amount Amount Amount

Area for calculations as desired. Area for calculations as desired. Aug 1, 13 Account Title Account Title Enter entry memorandum. Amount Amount

(b) August 31, 2013. Aug 31, 13 Account title Account title Enter entry memorandum. Area for calculations as desired. Aug 31, 13 Account Title Account Title Enter entry memorandum. 22,500 Amount Formula Amount

153010931.xlsx.ms_office, Problem 16-2, Page 9 of 12, 6/20/2013, 6:59 AM

Name: Date: Instructor: Course: th (c) December 31, 2013, including closing entries for end-of-year. Intermediate Accounting , 14 Edition by Kieso, Weygandt, and Warfield
Dec 31, 13 Account Title Account Title Enter entry memorandum. Amount Amount

Schedule 1 - Monthly Amortization Schedule Unamortized discount on bonds payable: Amount to be amortized over 120 months Text title Text title Text title Text title Text title Text title

Amount Formula Formula Formula Formula Formula Formula

Schedule 2 Interest Expense Schedule Amortization of bond discount charged to bond interest expense in 2013 would be as follows: Text title Formula Text title Formula Total Formula Interest on Bonds: Text title Text title Text title Text title Interest for 2013 would be as follows: Text title Text title Total Total interest Text title Text title Text title

Formula Formula Formula Formula Formula Formula Formula

Formula Formula Formula

153010931.xlsx.ms_office, Problem 16-2, Page 10 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
P16-3 (Stock-Option Plan) Berg Company adopted a stock-option plan on November 30, 2011, that provided that 70,000 shares of $5.00 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9.00 a share. The market price was $12.00 a share on November 30, 2012. On January 2, 2012, options to purchase 28,000 shares were granted to president Tom Winter 15,000 for services rendered in 2012 and 13,000 for services to be rendered in 2013. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett 7,000 for services to be rendered in 2012 and 7,000 for services to be rendered in 2013. The market value of the stock was $14 a share on January 2, 2012. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2013 neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market value of the stock was $8 a share on December 31, 2013, when the options for 2012 services lapsed. On December 31, 2014, both president Winter and vice president Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was $16 a share. Instructions: Prepare the necessary journal entries in 2011 when the stock-option plan was adopted, in 2012 when options were granted, in 2013 when options lapsed, and in 2014 when options were exercised. 2011 - No journal entry would be recorded at the time the stock option plan was adopted. However, a memorandum entry in the journal might be made on November 30, 2011, indicating that a stock option plan had authorized the future granting to officers of options to buy 70,000 shares of $5.00 par value common stock at $9.00 a share.

Jan 2, 12 Dec 31, 12

No entry Compensation Expense ($4.00 per share 22,000 sh) 88,000 Paid-in CapitalStock Options 88,000 (To record compensation expense attributable to 201222,000 options at $4)

Dec 31, 13

Compensation Expense ($4.00 per share 20,000 sh) 80,000 Paid-in CapitalStock Options 80,000 (To record compensation expense attributable to 201320,000 options at $4)

Dec 31, 13

Paid-in CapitalStock Options 88,000 Paid-in Capital from Expired Stock Options 88,000 (To record lapse of presidents and vice presidents options to buy 22,000 shares)

Dec 31, 14

Cash ($9.00 20,000 shares) 180,000 Paid-in CapitalStock Options ($4.00 20,000) 80,000 Common Stock ($5.00 par value 20,000 shares) 100,000 Paid-in Capital in Excess of Par 160,000 (To record issuance of 20,000 shares of $5 par value stock upon exercise of options at option price of $9)

153010931.xlsx.ms_office, Problem 16-3 Solution, Page 11 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
P16-3 (Stock-Option Plan) Berg Company adopted a stock-option plan on November 30, 2011, that provided that 70,000 shares of $5.00 par value stock be designated as available for the granting of options to officers of the corporation at a price of $9.00 a share. The market price was $12.00 a share on November 30, 2012. On January 2, 2012, options to purchase 28,000 shares were granted to president Tom Winter 15,000 for services rendered in 2012 and 13,000 for services to be rendered in 2013. Also on that date, options to purchase 14,000 shares were granted to vice president Michelle Bennett 7,000 for services to be rendered in 2012 and 7,000 for services to be rendered in 2013. The market value of the stock was $14 a share on January 2, 2012. The options were exercisable for a period of one year following the year in which the services were rendered. The fair value of the options on the grant date was $4 per option. In 2013 neither the president nor the vice president exercised their options because the market price of the stock was below the exercise price. The market value of the stock was $8 a share on December 31, 2013, when the options for 2012 services lapsed. On December 31, 2014, both president Winter and vice president Bennett exercised their options for 13,000 and 7,000 shares, respectively, when the market price was $16 a share. Instructions: Prepare the necessary journal entries in 2011 when the stock-option plan was adopted, in 2012 when options were granted, in 2013 when options lapsed, and in 2014 when options were exercised. Enter text answer here.

Jan 2, 12 Dec 31, 12

Enter text answer as appropriate. Account title Account title Amount Amount

Dec 31, 13

Account Title Account Title

Amount Amount

Dec 31, 13

Account Title Account Title

Amount Amount

Dec 31, 14

Account Title Account Title Account Title Account Title

Amount Amount Amount Amount

153010931.xlsx.ms_office, Problem 16-3, Page 12 of 12, 6/20/2013, 6:59 AM