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 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 highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that
Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01,
2012, in the format set in the template.
Where a highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step
of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously
entered.
Where a highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry
and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is
provided and you can use the "look to" formula to reference the appropriate account title without typing it.
Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for
Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be
acceptable.
Where a highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step
of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not
be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through
formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of
the formatting found in the templates to meet your desires.
Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate
for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with
borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference,
"=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial
text provided for Microsoft Excel.

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

Name:
Date:
11/22/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E10-2 (Acquisition Costs of Realty) Martin Buber Co. purchased land as a factory site for
$400,000
. The process of tearing down two old buildings on the site and constructing the
factory required 6 months. The company paid
$42,000
to raze the old buildings and
sold salvaged lumber and brick for
$6,300
. Legal fees of
$1,850
were paid for title investigation and drawing the purchase contract. Martin Buber paid
$2,200
to an engineering firm for a land survey, and
$68,000
for drawing the factory plans. The land
survey had to be made before definitive plans could be drawn. Title insurance on the property cost
$1,500
, and a liability insurance premium paid during construction was
$900
The contractors charge for construction was $2,740,000 . The company paid the contractor in two
installments:
$1,200,000
at the end of three months and
$1,540,000 upon
completion. Interest costs of
$170,000 were incurred to finance the construction.
Instructions:
Determine the cost of the land and the cost of the building as they should be recorded on the books of
Martin Buber Co. Assume that the land survey was for the building.

Land
Razing
Less: Salvage
Legal fees
Land survey
Plans
Title insurance
Liability insurance
Construction
Interest

Land
400,000
42,000
(6,300)
1,850

Building

2,200
68,000
1,500

439,050

900
2,740,000
170,000
2,981,100

327379964.xlsx, Exercise 10-2, Page 3 of 8, 08/20/2016, 21:40:49

Name:
Date:
11/22/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E10-3 (Acquisition Costs of Trucks) Kelly Clarkson Corporation operates a retail computer store. To
improve delivery services to customers, the company purchases four new trucks on April 1, 2014. The
terms of acquisition for each truck are described below.
1. Truck #1 has a list price of
$15,000
and is acquired for a cash payment of
$13,900
2. Truck #2 has a list price of
$16,000
and is acquired for a down payment of
$2,000
cash and a zero-interest bearing note with a face amount of
$14,000
The note is due
April 1, 2015, Clarkson would normally have to pay interest at a rate of
10%
for such a
borrowing, and the dealership has an incremental borrowing rate of
8%
3. Truck #3 has a list price of
$16,000
It is acquired in exchange for a computer system that
Clarkson carries in inventory. The computer system costs
$12,000
and normally sold by
Clarkson for
$15,200
Clarkson uses perpetual inventory system.
4. Truck #4 has a list price of
$14,000
It is acquired in exchange for
1,000
shares of common stock in Clarkson Corporation. The stock has a par value per share of
$10
and a market value of
$13
per share.
Instructions:
Prepare the appropriate journal entries for the above transactions for Clarkson Corporation.
1

Truck #1
Cash

13,900

Truck #2
Discount
Cash
Notes Payable
Hint: Use the Excel Present Value formula.
Cells are formatted to show to 2 decimal places.

14,727
(1,273)

Truck #3
Cost of Goods Sold
Inventory
Sales

15,200
12,000

Truck #4
Common Stock
Paid in capital in excess of par

13,000

13,900

2,000
14,000

12,000
15,200

10,000
3,000

Note: Due to significant digits with worksheets, calculators, and tables, minor differences may occur.

327379964.xlsx, Exercise 10-3, Page 4 of 8, 08/20/2016, 21:40:49

Name:
Date:
11/22/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P10-1 (Classification of Acquisition and Other Asset Costs) At December 31, 2013, certain accounts
included in the property, plant, and equipment section of Reagan Companys balance sheet had the
following balances.
Land
$230,000
Buildings
$890,000
Leasehold improvements
$660,000
Equipment
$875,000
During 2014 the following transactions occurred:
1. Land site number 621 was acquired for
$850,000 In addition, to acquire the land Reagan paid a
$51,000
commission to a real estate agent. Costs of
$35,000
were incurred
to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for
$13,000
2. A second tract of land (site number 622) with a building was acquired for
$420,000
The closing statement indicated that the land value was
$300,000 and the building value was
$120,000
Shortly after acquisition, the building was demolished at a cost of
$41,000
A new building was constructed for
$330,000 plus the following costs:
Excavation fees
$38,000
Architectural design fees
11,000
Building permit fees
2,500
Imputed interest on funds used during
construction (Stock financing)
8,500
The building was completed and occupied on September 30, 2014.
3. A third tract of land (site number 623) was acquired for
$650,000 and was put on the market
for resale.
4. During December 2014, costs of
$89,000
were incurred to improve leased office
space. The related lease will terminate on December 31, 2016, and is not expected to be renewed.
(Hint: Leasehold improvements should be handled in the same manner as land improvements.)
5. A group of new machines was purchased under a royalty agreement that provides for payment of
royalties based on units of production for the machines. The invoice price of the machines was
$87,000
freight costs were
$3,300
installation costs were
$2,400
and royalty payments for 2014 were
$17,500
Instructions:
(a) Prepare a detailed analysis of the changes in each of the following balance sheet accounts for 2014:
Land
Leasehold Improvements
Buildings
Equipment
Disregard the related accumulated depreciation accounts.

327379964.xlsx, Problem 10-1, Page 5 of 8, 08/20/2016, 21:40:49

Name:
Instructor:

Date:
Course:

11/22/15
AC3050

REAGAN COMPANY
Analysis of Land Account for 2014
Balance, January 1, 2014
Land site number 621
Acquisition
Commision to agent
Clearing Costs
Less amounts recovered
Total land site number 621

$230,000
$850,000
51,000
$35,000
13,000

22,000
$923,000

Land site number 622

Land value
Building value
Demolition cost
Total land site number 622
Balance at December 31, 2014

300,000
120,000
41,000
$461,000
$1,614,000
REAGAN COMPANY
Analysis of Buildings Account for 2014

Balance, January 1, 2014

Cost of new building constructed on land site number 622
Construction costs
Excavation fees
Architectural design fees
Building permit fee
Balance at December 31, 2014

$890,000
$330,000
38,000
11,000
2,500

381,500
$1,271,500

REAGAN COMPANY
Analysis of Leasehold Improvements Account for 2014
Balance, January 1, 2014
Office space
Balance at December 31, 2014

$660,000
89,000
$749,000
REAGAN COMPANY
Analysis of Equipment Account for 2014

Balance, January 1, 2014

Cost of the new machines acquired
Invoice price
Freight costs
Installation costs
Balance at December 31, 2014

$875,000
$87,000
3,300
2,400

327379964.xlsx, Problem 10-1, Page 6 of 8, 08/20/2016, 21:40:49

92,700
$967,700

Name:
Instructor:

Date:
Course:

11/22/15
AC3050

(b) List the items in the situation that were not used to determine the answer to (a) above, and indicate
where, or if, these items should be included in Reagan's financial statements.
Interest on common stock financing is not permitted and doesn't appear in any financial statement.

Land site number 623, was acquired for $650,000 and should be included on the balance sheet as land
held for resale.
Royalty payments of $17,500 should be inlcuded as a normal operating expense in the income statement.

327379964.xlsx, Problem 10-1, Page 7 of 8, 08/20/2016, 21:40:49

Name:
Date:
11/22/15
Instructor:
Course: AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P10-5 (Classification of Costs and Interest Capitalization) On January 1, 2014, Blair Corporation
purchased for
$500,000 a tract of land (site number 101) with a building. Blair paid a real estate
brokers commission of
$36,000
$6,000
, and title guarantee insurance
, legal fees of
of
$18,000
. The closing statement indicated that the land value was
$500,000
and the building value was $100,000 . Shortly after acquisition, the building was
razed at a cost of
$54,000
Blair entered into a
$3,000,000 fixed-price contract with Slatkin Builders, Inc. on
March 1, 2014, for the construction of an office building on land site number 101. The building was
completed and occupied on September 30, 2015. Additional construction costs were incurred as follows:
Plans, specifications, and blueprints
$21,000
Architects fees for design and supervision
$82,000
The building is estimated to have a
40
year life from date of completion and will be
depreciated using the
150%
declining balance method.
To finance construction costs, Blair borrowed
$3,000,000 on March 1, 2014. The loan
is payable in
10
annual installments of
$300,000 plus interest at the rate of
10%
Blair's weighted-average amounts of accumulated building construction expenditures
were as follows:
For the period March 1 to December 31, 2014
$1,300,000
For the period January 1 to September 30, 2015
$1,900,000
Instructions:
(a) Prepare a schedule that discloses the individual costs making up the balance in the land account
in respect of land site number 101 as of September 30, 2015.
BLAIR CORPORATION
Cost of Land (Site #101)
As of September 30, 2015
Cost of land and old building
Real estate broker's commission
Legal fees
Title guarantee insurance
Removal of old building
Cost of land

$500,000
36,000
6,000
18,000
54,000
$614,000

(b) Prepare a schedule that discloses the individual costs that should be capitalized in the office
building account as of September 30, 2015. Show supporting computations in good form.
BLAIR CORPORATION
Cost of Building
As of September 30, 2015
Fixed construction contract price
Plans, specifications, and blueprints
Architects' fees
Interest capitalized during 2014
Interest capitalized during 2015
Cost of building
Interest to be capitalized:
2014
$1,300,000
2015
$1,900,000

$3,000,000
21,000
82,000
130,000
190,000
$3,423,000

10%
10%

=
=

$130,000
$190,000

327379964.xlsx, Problem 10-5, Page 8 of 8, 08/20/2016, 21:40:49