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 "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

sistent presentation.

Name: Instructor: Intermediate Accounting, IFRS by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse

Date: Course:

E21-3, (Lessee Entries, Finance Lease with Executory Costs and Unguaranteed Residual Value) 10 Assume that on January 1, 2011, Stora Enso (FIN) signs a -year non-cancelable lease agreement to lease a storage building from Balesteros Storage Company. The following information pertains to this lease agreement. 1. The agreement requires equal rental payments of $90,000 beginning on January 1, 2011. 2. The fair value of the building on January 1, 2011, is $550,000 3. The building has an estimated economic life of 12 years, with an unguaranteed residual value of $10,000 Stora Enso depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 12% 5. Stora Ensos incremental borrowing rate is per year. It is impracticable to determine the lessors implicit rate. 6. The yearly rental payment includes $3,088.14 of executory costs related to taxes on the property. Instructions: Prepare the journal entries on the lessees books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2011 and 2012. Stora Ensos corporate year-end is December 31. Capitalized amount of the lease: Yearly payment Executory costs Minimum annual lease payment Present value formula as desired. Jan 1, 11 Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title Account Title STORA ENSO CORP. Lease Amortization Schedule (Lessee) Annual Payment Less Executory Costs Formula Formula Formula Interest (12%) on Liability Amount Formula Formula Reduction of Lease Liability Formula Formula Formula Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount Amount

Amount Amount Formula

Jan 1, 11

Dec 31, 11

Dec 31, 11

Jan 1, 12

Dec 31, 12

Dec 31, 12

Schedule 1:

Date Jan 1, 11 Jan 1, 11 Jan 1, 12 Jan 1, 13

Lease Liability Amount Formula Formula Formula

109529736.xlsx.ms_office, Exercise E21-3, Page 4 of 9 Page(s), 9/16/20121:47 AM

Name: Instructor: Intermediate Accounting, IFRS by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse

Date: Course:

E21-6, (Lessor Entries, Sales-Type Lease) Wadkins Company, a machinery dealer, leased a machine to Aoki Corporation on January 1, 2011. The lease is for an 8 -year period and requires equal annual payments of 38,514,000 at the beginning of each year. The first payment is received on January 1, 2011. Wadkins had purchased the machine during 2010 for 170,000,000 Wadkins set the annual rental to ensure an 11% rate of return. The machine has an economic life of 8 years with no residual value and reverts to Wadkins at the termination of the lease. Instructions (a) Compute the amount of the lease receivable. (Round to the closest thousand yen value.) Formula rounded to the closest thousan yen value. (b) Prepare all necessary journal entries for Wadkins for 2011. (Round to the closest thousand yen value.) Jan 1, 11 Account title Account title Account title Account title Account title Account title Account title Account title Amount Amount Amount Amount Amount Amount Amount Amount

Jan 1, 11

Jan 0, 00

109529736.xlsx.ms_office, Exercise E21-6, Page 5 of 9 Page(s), 9/16/20121:47 AM

Name: Instructor: Intermediate Accounting, IFRS by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse

Date: Course:

P21-4, (Statement of Financial Position and Income Statement DisclosureLessee) The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Inception date: Lease term: (years) Economic life of lease equipment: (years) Fair value of asset at October 1, 2010: Residual value at end of lease term: Lessor's implicit rate: Lessee's incremental borrowing rate: Annual lease payment due at the beginning of each year, beginning with October 1, 2010: October 1, 2010 6 6 300,383 0 10% 10% 62,700

per year and are to be paid each October 1, The lessee assumes responsibility for all executory costs, which amount to 5,500 is not included in the rental payment of .) The asset will beginning October 1, 2010. (This 5,500 62,700 revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a direct-financing lease by the lessor. Interest (10%) on Unpaid Obligation / Net investment: 0 23,768 19,875 15,593 10,882 5,699 75,817 Reduction of Lease Obligation / Net Investment: 62,700 38,932 42,825 47,107 51,818 57,001 300,383 Balance of Lease Obligation / Net Investment: 300,383 237,683.00 198,751 155,926 108,819 57,001 0

Date: 10/01/10 10/01/10 10/01/11 10/01/12 10/01/13 10/01/14 10/01/15 * rounding error of 1.

Annual lease Payment / Receipt: 62,700 62,700 62,700 62,700 62,700 62,700 376,200

Instructions: (Round all numbers to the nearest cent.) (a) Assuming the lessee's accounting period ends on September 30, answer the following questions (1) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2011? Account Title Account Title Account Title Amount Amount Amount

(2) What items and amounts will appear on the lessee's balance sheet at September 30, 2011? Title Account title Title Account Title Account Title Title Account Title Account Title

Amount

Amount Amount

Amount Amount

(3) What items and amounts will appear on the lessee's income statement for the year ending September 30, 2012? Title Account Title Account Title

Amount Amount

109529736.xlsx.ms_office, Problem P21-4, Page 6 of 9 Page(s), 9/16/20121:47 AM

Name: Date: Instructor: Course: (4) What items and amounts will appearby Kieso, Weygandt, andsheet at September 30, 2012? Intermediate Accounting, IFRS on the lessee's balance Warfield
Title Account title Title Account Title Account Title Title Account Title Account Title Amount

Amount Amount

Amount Amount

(b) Assuming the lessee's accounting period ends on December 31, answer the following questions with respect to this lease agreement: (1) What items and amounts will appear on the lessee's income statement for the year ending December 31, 2010? Title Title Title Amount Amount Amount

(2) What items and amounts will appear on the lessee's balance sheet at December 31, 2010? Title Account Title Account Title Title Account title Title Account Title Account Title Title Account title

Amount Amount

Amount

Amount Amount

Amount

(3) What items and amounts will appear on the lessee's income statement for the year ending Title Title Title Amount Amount Amount

(4) What items and amounts will appear on the lessee's balance sheet at December 31, 2011? Title Account Title Account Title Title Account title Title Account Title Account Title Title Account title

Amount Amount

Amount

Amount Amount

Amount

109529736.xlsx.ms_office, Problem P21-4, Page 7 of 9 Page(s), 9/16/20121:47 AM

Name: Instructor: Intermediate Accounting, IFRS by Kieso, Weygandt, and Warfield Primer on Using Excel in Accounting by Rex A Schildhouse

Date: Course:

P21-5 (Statement of Financial Position and Income Statement DisclosureLessor) The following facts pertain to a non-cancelable lease agreement between Alschuler Leasing Company and McKee Electronics, a lessee, for a computer system. Inception date: Lease term: (years) Economic life of lease equipment: (years) Fair value of asset at October 1, 2010: Residual value at end of lease term: Lessor's implicit rate: Lessee's incremental borrowing rate: Annual lease payment due at the beginning of each year, beginning with October 1, 2010: October 1, 2010 6 6 300,383 0 10% 10% 62,700

per year and are to be paid each October 1, The lessee assumes responsibility for all executory costs, which amount to 5,500 is not included in the rental payment of .) The asset will beginning October 1, 2010. (This 5,500 62,700 revert to the lessor at the end of the lease term. The straight-line depreciation method is used for all equipment. The following amortization schedule has been prepared correctly for use by both the lessor and the lessee in accounting for this lease. The lease is to be accounted for properly as a finance lease by the lessee and as a direct-financing lease by the lessor. Interest (10%) on Unpaid Obligation / Net investment: 0 23,768 19,875 15,593 10,882 5,699 75,817 Reduction of Lease Obligation / Net Investment: 62,700 38,932 42,825 47,107 51,818 57,001 300,383 Balance of Lease Obligation / Net Investment: 300,383 237,683.00 198,751 155,926 108,819 57,001 0

Date: 10/01/10 10/01/10 10/01/11 10/01/12 10/01/13 10/01/14 10/01/15 * rounding error of 1.

Annual lease Payment / Receipt: 62,700 62,700 62,700 62,700 62,700 62,700 376,200

Instructions: (a) Assuming the lessor's accounting period ends on September 30, answer the following questions with respect to this lease agreement: (1) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2011? Amount Title (2) What items and amounts will appear on the lessor's balance sheet at September 30, 2011? Title Amount Account title Title Account title Account title

Amount Amount

Formula

(3) What items and amounts will appear on the lessor's income statement for the year ending September 30, 2012? Amount Title (4) What items and amounts will appear on the lessor's balance sheet at September 30, 2012? Title Amount Account title Title Account title Account title

Amount Amount

Formula

(b) Assuming the lessor's accounting period ends on December 31, answer the following questions with respect to this lease agreement: (1) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2010? Amount Title

109529736.xlsx.ms_office, Problem P21-5, Page 8 of 9 Page(s), 9/16/20121:47 AM

Name: Date: Instructor: Course: (2) What items and amounts will appear on the lessor's balance sheet at Intermediate Accounting, IFRS by Kieso, Weygandt, and Warfield December 31, 2010?
Title Account title Title Account title Account title Amount

Amount Amount

Formula

(3) What items and amounts will appear on the lessor's income statement for the year ending December 31, 2011? Amount Title (4) What items and amounts will appear on the lessor's balance sheet at December 31, 2011? Title Amount Account title Title Account title Account title

Amount Amount

Formula

109529736.xlsx.ms_office, Problem P21-5, Page 9 of 9 Page(s), 9/16/20121:47 AM