Spreadsheet User Guide. First-Year Course

Spreadsheet User Guide with Solutions First-Year Course For Use With Glencoe Accounting: Online Learning Center Bothell, WA Chicago, IL Columbus, OH New York, NY

CONTENTS Section 1 Introduction 1 Section 2 Teaching Suggestions 3 Section 3 Learning to Use a Spreadsheet Program 4 Section 4 Instruction Sheets 6 Section 5 Solutions 52 glencoe.com Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved. The contents, or parts thereof, may be reproduced in print form for non-profit educational use with Glencoe Accounting: First-Year Course, provided such reproductions bear copyright notice, but may not be reproduced in any form for any other purpose without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, network storage or transmission, or broadcast for distance learning. Send all inquiries to: McGraw-Hill Education 4400 Easton Commons Columbus, OH 43219 1 2 3 4 5 6 7 8 9 XXX 15 14 13 12 11 10

SECTION 1 Introduction Today s accounting professionals rely on the computer to assist them in performing a variety of tasks. The personal computer combined with the power of software provide accountants with the tools they need to help them be more efficient. The electronic spreadsheet program, which offers power and versatility, has proven to be an indispensable tool. Spreadsheet User Guide with Solutions is designed to be used with the spreadsheet templates provided on the Glencoe Accounting Online Learning Center. The templates allow students to explore the power of spreadsheet software in solving accounting problems. This user guide includes student instruction sheets, printed solutions, and teaching suggestions. Templates with Formulas. Spreadsheet templates are provided for selected problems in the Glencoe Accounting: Real-World Applications & Connections First-Year Course textbook. Students analyze the accounting information provided in the textbook, load the corresponding template, and enter problem data as instructed. The default software setting is to Use templates with formulas, so that the student use templates that contain the formulas needed to calculate the desired results. Templates without Formulas. The optional software setting is not to use templates with formulas, and when selected, the software will require the students to enter the formulas in the templates. Instructors who want their students to learn advanced spreadsheet skills may choose to use this option. The option to use spreadsheet templates with or without formulas can be selected or deselected under the Groups tab in the Accounting Management System of the Online Learning Center. (Note that the First-Year spreadsheet formulas are not provided in this manual. To obtain these formulas, you will need to load the templates and check the appropriate cells for the given formulas.) What-If Analysis. Spreadsheet problems are enhanced using what-if analysis questions. After your students complete a problem, they practice critical thinking skills by performing what-if analysis to determine the effect of changes made to the accounting data. Chapter Reviews and Working Papers. Student instructions are also provided in the student Chapter Reviews and Working Papers. In addition, students are provided with general instructions for loading files, entering data, and saving files. More detailed instructions are provided for the initial problems, but students must possess a basic understanding of the spreadsheet software to complete the problems. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 1

Software Support Center Glencoe provides toll-free telephone assistance for teachers who experience difficulty while using our software or templates. Before calling for assistance please check the following: Is your computer working properly? Try some other software, which you know is working, on the same computer. Are you certain the software is not working properly? Try the software on another computer. Can you repeat the problem? Does the software seem to malfunction at the same point each time? Verify the version of the spreadsheet software. In order for the Support Center to help you as quickly as possible, before calling for assistance have the following at hand: The exact title and ISBN or part number from the template label or package. The brand, model, and configuration of computer you are using. The version of the operating system you are using. The Glencoe Support Center toll-free number is 1-800-437-3715. The email address is epgtech@mcgraw-hill.com. The Support Center is available from 8:00 a.m. to 6:00 p.m. Eastern Time. Please do not give this telephone number or email address to your students. 2 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

SECTION 2 Teaching Suggestions The following suggestions are intended to help you use the spreadsheet applications program effectively. Discuss the nature and purpose of electronic spreadsheets and their importance in accounting. Explain that a spreadsheet is a tool for organizing financial data in columns and rows, similar to the organization of a work sheet used in manual accounting systems. Point out that the electronic spreadsheet enables automatic recalculation of results based on changes made in one or more cells. Present the basic spreadsheet terms with which the students should be familiar when they complete the spreadsheet exercises, such as column, row, cell, cell pointer, template, and work sheet. Simple definitions for these terms are provided in the student working papers. Demonstrate the basic spreadsheet operations to the students before they begin the first spreadsheet problem. Although detailed instructions are provided for the student in the working papers, a demonstration will provide the students with an overview of spreadsheet operation before they begin their work. Instructions for opening a template using the Glencoe Accounting Online Learning Center software are given in the student working papers and in the instruction sheets that follow. You may want to explain how to open a file if the student experiences difficulty with the launcher. The templates provided are in Microsoft Excel format. These files are compatible with most spreadsheet software; however, in rare instances, some formatting, such as underlines or bold, may be lost in the conversion. (For instructors using the templates that require students to enter their own formulas) Copying formulas will save your students valuable class time. A discussion of relative and absolute cell references may help your students avoid problems when copying formulas. The use of absolute versus relative cell references depends on each individual spreadsheet and the layout of the data. Explain to students how to save their work. They should use the Save option from the File menu. If you plan to ask students to print their spreadsheet solutions, review the printing procedures with them. You may want to go over procedures for printing pages landscape and printing a spreadsheet to fit to one page. Remind students to make sure they have entered their name and the current date in the space provided on each spreadsheet prior to printing their work. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 3

SECTION 3 Learning to Use a Spreadsheet Program Introduction Accountants use several tools to help them evaluate and present various financial information. One tool that has proven to be invaluable to accountants is the electronic spreadsheet. An electronic spreadsheet is simply a computerized version of the paper work sheet with which you are probably already familiar. The advantage of using an electronic spreadsheet is that changes and corrections can be made to the spreadsheet very quickly. Simply enter the changes. The computer automatically recalculates the spreadsheet based on the new data and updates the totals as needed. Before you begin using spreadsheet software, there are some terms with which you should become familiar: Column: a vertical area of varying width that is labeled with a letter. Row: a horizontal area that is labeled with a number. Cell: the intersection of a column and a row. The intersection is referenced by the column and row. For example, cell C12 is the point at which column C and row 12 intersect. Cell pointer: a rectangular block that highlights the current cell. When you want to enter data in a cell, first use the mouse or arrow keys to move the cell pointer to that position. Template: a spreadsheet that contains formulas, labels, and formatting codes; the template can be used simply by typing information in the appropriate cells. Work sheet: a spreadsheet document. The cells where you enter labels, amounts, and formulas are collectively referred to as a work sheet. A work sheet is also a form used to gather all data needed at the end of an accounting period to prepare financial statements. Open a Spreadsheet Problem Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Turn on your computer. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select the chapter problem you want to work on and click Launch, or doubleclick on the problem title. Your spreadsheet program will launch and the template will load. Using the Spreadsheet Guide in your working papers, complete the problem according to the instructions provided. Continue a Spreadsheet Problem from a Previous Session If you have been directed to save your work to a network, select the problem from the Problems & Tutorials list. The system will automatically retrieve your files from the previous session. If you have been directed to save your work to a disc and you want to continue to work on the problem you have saved, be sure the correct disc is in the drive and select Continue working on this problem. The system will then retrieve your files from the disc. 4 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Enter Data into a Spreadsheet Navigation. As you work with a template, you will be required to enter text and numbers into various cells to complete a problem. When instructed to enter information, use the mouse or the arrow keys to move the cell pointer to the specified cell, type the data (text or numbers), and then press the Enter key. Types of Data. There are two kinds of data that you will enter numbers and labels. When you type 425 the software knows that you are entering a number. Numeric data begins with a digit (0 9) or a symbol (+ - (. @ $ # or any currency symbol). All other symbols signify a label. Cell Protection. Depending on the spreadsheet program you are using, many of the cells are protected to prevent you from accidentally erasing information. If you attempt to type a number or label into a protected cell, the spreadsheet program displays a message indicating the cell is locked or protected. Errors. If you make a mistake while typing the information and you have not yet pressed Enter, simply use the Backspace key to erase the incorrect data and retype the entry. When the entry is correct, press Enter to accept the data. If you notice an error after you press Enter, simply retype the data. Overflows. Sometimes, the data you enter may be too wide to fit into one cell. When you press Enter, the data overflows from the current cell into the next cell. As long as data has not been entered in the adjoining cell, the entire cell contents appear on the work sheet. Placeholders. Placeholders appear in each template to identify where to type your name and the date. Simply move to the cell with (name) and type your name. Then move to the cell with (date) and type the date. Save a Spreadsheet After you complete a problem, or if you need to save your work before you finish an activity, use the Save option from the File menu and accept the default location offered. Print a Spreadsheet Use your software s Print command to print your completed spreadsheet. Access your software s Help file for detailed printing instructions. Sometimes a spreadsheet will be too wide to fit vertically on an 8.5 x 11 piece of paper. If your spreadsheet is too wide to fit on an 8.5 wide piece of paper, you can change your print settings to print the worksheet landscape. Landscape means that the worksheet will be printed broadside on the page. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and depth of the work sheet to fit on one page. End a Session After working with the software, you should exit the spreadsheet program. Then remove the template disc from the drive (if necessary) and turn off the computer. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 5

SECTION 4 Instruction Sheets Problem 3-9 Determining the Effects of Transactions on the Accounting Equation 7 Problem 4-6 Analyzing Transactions into Debit and Credit Parts 10 Problem 5-8 Completing the Accounting Equation 13 Problem 8-4 Preparing a Six-Column Work Sheet 15 Problem 8-8 Completing the Work Sheet 17 Problem 9-8 Preparing a Statement of Changes in Owner s Equity 19 Problem 10-9 Completing End-of-Period Activities 21 Problem 11-6 Reconciling the Bank Statement 23 Problem 12-6 Preparing a Payroll Register 25 Problem 13-6 Calculating Employer s Payroll Taxes 27 Problem 15-5 Determining Due Dates and Discount Amounts 29 Problem 18-5 Completing a Ten-Column Work Sheet 31 Problem 19-5 Preparing an Income Statement 33 Problem 20-7 Completing End-of-Period Activities 35 Problem 21-8 Preparing Corporate Financial Statements 37 Problem 25-6 Calculating Gross Profits on Sales 39 Problem 27-5 Calculating the Percentage of a Partner s Capital Investment 41 Problem 28-4 Preparing an Income Statement and Balance Sheet for a Partnership 43 Problem 28-9 Completing End-of-Period Activities for a Partnership 45 Problem 3A Determining the Effects of Business Transactions on the Accounting Equation 47 Problem 23A Calculating and Recording Depreciation Expense 49 Problem 26A Calculating Current and Future Interest 50 6 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

3-9 Determining the Effects of Transactions on the Accounting Equation Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 3-9 in your textbook. This problem involves entering transactions in the accounting equation. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 3-9 from the Chapter 3 drop-down list. The template should look like the one below. Step 5 Type your name in the cell containing the (name) placeholder. After you type your name and press Enter, the (name) placeholder will be replaced by the information you just typed. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 7

Step 6 Type today s date in the cell containing the (date) placeholder. After you type the date and press Enter, the (date) placeholder will be replaced by the information you just typed. When you work with any of the other spreadsheet templates, your name and date should always be typed in the cells containing the (name) and (date) placeholders. TIP 3-9A: Options you select in the regional options of Control Panel determine the default format for the current date and time and the characters recognized as date and time separators for example, the slash (/) and colon (:) on United States-based systems. Be careful not to enter an equal sign before entering a date with slashes, as your spreadsheet application may view the date as a formula and the slashes as division symbols. Step 7 In the first transaction, Ms. Ortega, the owner of the business, opened a checking account for the business. Remember from Chapter 3 that two parts of the accounting equation are affected by this transaction: Cash and Juanita Ortega, Capital. Cash is increasing, and Juanita Ortega, Capital, is increasing. To record this transaction in the spreadsheet template, move the cell pointer to cell B12 and type 60000. TIP 3-9B: Remember, to enter data into the cell, you must first type the data and then press <Enter>. Do not type a dollar sign or a comma when you type the data the spreadsheet template will automatically format the data when it is entered. TIP 3-9C: Depending on the spreadsheet program you are using, the spreadsheet templates may be formatted to protect you from accidentally erasing information in selected cells. For example, the column headings in the spreadsheet for Problem 3-9 are protected. If you attempt to type a number or label into a protected cell, the spreadsheet program displays a message indicating that the cell is locked or protected. Simply move to the correct cell and retype the information. Step 8 Next, move the cell pointer to cell J12. Type 60000 in cell J12 to record the increase in Juanita Ortega, Capital. Again, do not include a dollar sign or a comma as part of the cell entry the spreadsheet template will automatically format the data when it is entered. Move the cell pointer to cell J23. Notice that the spreadsheet automatically calculates the balance in each account as you enter the data. Step 9 To check your work, look at rows 26 through 30 in column D. Total assets equal $60,000. Total liabilities plus owner s equity also equal $60,000. The accounting equation is in balance. Step 10 Analyze the remaining transactions in Problem 3-9 and enter the appropriate data into the spreadsheet template. TIP 3-9D: To decrease an account balance, precede the amount entered by a minus sign. For example, to decrease Cash in Bank by $3,000, type 3000 in the Cash in Bank column. Check the totals at the bottom of the spreadsheet after each transaction has been entered. Remember, total assets should always equal total liabilities plus owner s equity. If the accounting equation becomes out of balance, check your work closely to find the error, and make any necessary corrections. When you have entered all of the transactions, ask your teacher to check your work. 8 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Step 11 Save the spreadsheet using the Save option from the File menu. TIP 3-9E: It is good practice to always move your cursor to cell A1 before saving your spreadsheet. This will ensure that your spreadsheet opens in the first cell when you reopen it. For many spreadsheet applications, a shortcut for moving to cell A1 is by holding down the <Ctrl> key while pressing the <Home> key. Check your software s Help file for its specific shortcut commands. Step 12 Print the completed spreadsheet. TIP 3-9F: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Landscape means that the worksheet will be printed broadside on the page. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and depth of the worksheet to fit on one page. Step 13 Exit the spreadsheet program. Step 14 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 3-9 from your textbook. What-If Analysis TIP 3-9G: Always save your work before performing What-If Analysis. It is not necessary to save your work after performing What-If Analysis unless your teacher instructs you to do so. If you are required to save your work after performing What-If Analysis, be sure to rename the spreadsheet to avoid saving over your original work. If Ms. Ortega withdrew an additional $1,500 from the business for personal use, what would the balance in the Juanita Ortega, Capital account be? Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 9

4-6 Analyzing Transactions into Debit and Credit Parts Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Step 5 Read the instructions for Problem 4-6 in your textbook. This problem involves recording transactions in T accounts. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 4-6 from the Chapter 4 drop-down menu. The template should look like the one on the next page. Type your name and today s date in the cells containing the (name) and (date) placeholders. TIP 4-6A: Options you select in the regional options of Control Panel determine the default format for the current date and time and the characters recognized as date and time separators for example, the slash (/) and colon (:) on United States-based systems. Be careful not to enter an equal sign before entering a date with slashes, as your spreadsheet application may view the date as a formula and the slashes as division symbols. Step 6 In the first transaction, Juanita Ortega, the owner of the business, transferred an additional $53,250 from her personal savings account into the business checking account. Two accounts are affected by this transaction: Cash and Juanita Ortega, Capital. Cash is debited, and Juanita Ortega, Capital, is credited. To record this transaction in the spreadsheet template, move the cell pointer to cell A10, the first cell on the debit side of the Cash in Bank T account, and type 53250. TIP 4-6B: Remember, to enter data into the cell, you must first type the data and then press <Enter>. Do not type a comma when you enter the data the spreadsheet template will automatically format the data when it is entered. 10 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Step 7 Step 8 TIP 4-6C: Depending on the spreadsheet program you are using, the spreadsheet templates may be formatted to protect you from accidentally erasing information in selected cells. For example, the T account headings in the spreadsheet for Problem 4-6 are protected. If you attempt to type a number or label in a protected cell, the spreadsheet program displays a message indicating that the cell is locked or protected. Simply move to the correct cell and re-enter the information. Next, move the cell pointer to cell H30, the first cell on the credit side of the Juanita Ortega, Capital T account. Type 53250 in cell H30 to record the credit to Juanita Ortega, Capital. Again, do not include a comma as part of the cell entry the spreadsheet template will automatically format the data when it is entered. Move the cell pointer to cell H35. Notice that the spreadsheet automatically calculates the balance in each T account. To check your work, look at cells D39 and D40. The sum of debit balances equals $53,250. The sum of credit balances also equals $53,250. Step 9 Analyze the remaining transactions in Problem 4-6 and type the appropriate data into the spreadsheet template. Check the totals at the bottom of the spreadsheet after each transaction has been entered. Remember, the sum of debit balances should always equal the sum of credit balances. If the debit and credit balances become out of balance, check your work closely to find the error, and make any necessary corrections. When you have entered all of the transactions, ask your teacher to check your work. Step 10 Save the spreadsheet using the Save option from the File menu. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 11

TIP 4-6D: It is good practice to always move your cursor to cell A1 before saving your spreadsheet. This will ensure that your spreadsheet opens in the first cell when you reopen it. For many spreadsheet applications, a shortcut for moving to cell A1 is by holding down the <Ctrl> key and pressing the <Home> key. Check your software s Help file for its specific shortcut commands. Step 11 Print the completed spreadsheet. Step 12 Exit the spreadsheet program. Step 13 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 4-6 from your textbook. What-If Analysis TIP 4-6E: Always save your work before performing What-If Analysis. It is not necessary to save your work after performing What-If Analysis unless your teacher instructs you to do so. If you are required to save your work after performing What-If Analysis, be sure to rename the spreadsheet to avoid saving over your original work. If Juanita Ortega purchased a computer for $1,500 cash, what would the balance in the Cash in Bank account be? 12 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

5-8 Completing the Accounting Equation Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 5-8 in your textbook. This problem involves determining the missing amounts for the accounting equations given. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 5-8 from the Chapter 5 drop-down list. The template should look like the one below. Step 5 Step 6 Step 7 Type your name and today s date in the cells containing the (name) and (date) placeholders. The first equation is completed for you. Notice that Assets ($64,400) equal Liabilities ($8,200) + Owner s Capital ($56,300) Withdrawals ($500) + Revenue ($10,000) Expenses ($9,600). To complete the second equation, type the amounts given in your textbook for Assets, Liabilities, Owner s Equity, Withdrawals, and Revenue in the appropriate cells. To calculate the amount for Expenses, add Liabilities ($525) + Owner s Equity ($18,800) Withdrawals ($1,200) + Revenue ($12,100) to get a total of $30,225. Subtract Assets ($22,150) from this amount to get $8,075, the missing amount for Expenses. Type 8075 in cell L12. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 13

TIP 5-8A: Remember, do not type a dollar sign or a comma when you enter the data the spreadsheet template will automatically format the data for you. Step 8 To check your work, look at cells L23 and L25. Total Assets should equal Total Liabilities + Owner s Equity Withdrawals + Revenue Expenses. Step 9 Complete the remaining equations in Problem 5-8 by typing the appropriate data from your text into the spreadsheet template and calculating the missing amounts. Check the totals at the bottom of the spreadsheet after the amounts have been entered to make sure they are in balance. If the totals do not balance, check your work closely to find the error, and make any necessary corrections. When you have entered all of the equations, ask your teacher to check your work. Step 10 Save the spreadsheet using the Save option from the File menu. Step 11 Print the completed spreadsheet. Step 12 Exit the spreadsheet program. Step 13 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 5-8 from your textbook. What-If Analysis TIP 5-8B: Always save your work before performing What-If Analysis. It is not necessary to save your work after performing What-If Analysis unless your teacher instructs you to do so. If you are required to save your work after performing What-If Analysis, be sure to rename the spreadsheet to avoid saving over your original work. If Liabilities are $50,000, Owner s Capital is $39,250, Withdrawals are $1,176, Revenue is $15,802, and Expenses are $11,660, what are Assets? TIP 5-8C: Use row 11 of the spreadsheet template to answer this question. Type the amounts for Liabilities, Owner s Capital, Withdrawals, Revenue, and Expenses. Note that the amount for Assets is automatically computed for you! This is because cell B11 contains a formula that automatically calculates the missing amount. Formulas are very useful in spreadsheets, saving time and improving accuracy. 14 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

8-4 Preparing a Six-Column Work Sheet Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 8-4 in your textbook. This problem involves preparing a six-column work sheet for Wilderness Rentals. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 8-4 from the Chapter 8 drop-down list. The template should look like the one below. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 The first account, Cash in Bank, has a month-end debit balance of $5,814. Move the cell pointer to cell C14 and type the account balance into the Trial Balance section of the spreadsheet template: 5814. TIP8-4A: It is not necessary to include a comma or the decimal point and two zeroes as part of the amount. The spreadsheet will automatically format the data as you type. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 15

Step 7 Step 8 Step 9 Type the remaining balances into the Trial Balance section of the spreadsheet template. When you have typed all of the balances, move the cell pointer into the Income Statement and Balance Sheet sections of the spreadsheet template. Notice that the amounts for the Income Statement and Balance Sheet are automatically entered. As you type the data into the Trial Balance section of the spreadsheet template, the program automatically calculates the remaining sections of the work sheet for you. The program also calculates the column totals and the net income for Wilderness Rentals. When you have finished entering the account balances, ask your teacher to check your work. Save the spreadsheet using the Save option from the File menu. Print the completed spreadsheet. TIP 8-4B: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and depth of the worksheet to fit on one page. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 8-4 from your textbook. What-If Analysis TIP 8-4C: Always save your work before performing What-If Analysis. It is not necessary to save your work after performing What-If Analysis unless your teacher instructs you to do so. If you are required to save your work after performing What-If Analysis, be sure to rename the spreadsheet to avoid saving over your original work. If Cash in Bank were $4,314 and Rent Expense were $5,000, what would Wilderness Rentals net income (or net loss) be? 16 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

8-8 Completing the Work Sheet Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 8-8 in your textbook. This problem involves completing a six-column work sheet for Job Connect. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 8-8 from the Chapter 8 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. The work sheet for Job Connect is given in the spreadsheet template. However, several amounts are missing from various columns. Calculate the missing amounts and type them in the cells containing the AMOUNT placeholders. For example, the first amount missing is the Trial Balance debit amount for Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 17

Step 7 Step 8 Step 9 Accounts Receivable Marquez Manufacturing. By looking in the Balance Sheet debit column, you can see this amount is $908.00. Type 908 in cell C16. Remember, it is not necessary to type a dollar sign or the decimal point and ending zeroes. Enter the remaining missing amounts into the work sheet. Notice that the template recalculates the column totals and the net income for Job Connect as you type the missing amounts. When you have finished entering the account balances, ask your teacher to check your work. Save the spreadsheet using the Save option from the File menu. Print the completed spreadsheet. TIP 8-8A: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 8-8 from your textbook. 18 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

9-8 Preparing a Statement of Changes in Owner s Equity Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 9-8 in your textbook. This problem involves preparing a statement of changes in owner s equity. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 9-8 from the Chapter 9 drop-down list. The template should look like the one below. Step 5 Step 6 Step 7 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the investments by owner, net income, withdrawals by owner, and ending capital in the cells containing the AMOUNT placeholders. Remember, it is not necessary to add the decimal point and ending zeroes. The beginning capital and the total increase in capital will be automatically computed. Save the spreadsheet using the Save option from the File menu. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 19

Step 8 Print the completed spreadsheet. Step 9 Exit the spreadsheet program. Step 10 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 9-8 from your textbook. What-If Analysis TIP 9-8A: Remember, always save your work before performing What-If Analysis. Be sure to rename the spreadsheet if you save your work after performing What-If Analysis. If the owner withdrew $3,200 during the period, what would beginning capital be? 20 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

10-9 Completing End-of-Period Activities Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 10-9 in your textbook. This problem involves preparing a six-column work sheet and the end-of-period financial statements for Job Connect. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 10-9 from the Chapter 10 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. The first account, Cash in Bank, has a month-end balance of $6,000. Move the cell pointer to cell C14 and type the account balance into the Trial Balance debit column of the work sheet: 6000. TIP10-9A: Remember, it is not necessary to include a comma or the decimal point and two zeroes as part of the amount. The spreadsheet will automatically format the data when it is entered. Step 7 Enter the remaining balances into the Trial Balance section of the work sheet. When you have entered all of the balances, move the cell pointer into the Income Statement and Balance Sheet sections of the work sheet. Notice that Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 21

Step 8 the amounts for the Income Statement and Balance Sheet are automatically entered. As you type the data into the Trial Balance section of the work sheet, the program automatically calculates the remaining sections of the work sheet for you. The program also calculates the column totals and the net income for Job Connect. Now scroll down below the work sheet and look at the income statement, statement of changes in owner s equity, and balance sheet for Job Connect. Notice the financial statements are already completed. This is because the spreadsheet template includes formulas that automatically pull information from the filled-in work sheet to complete the financial statements. Step 9 Now scroll down below the balance sheet and complete the closing entries in the general journal. The account names and posting references are given for you. Step 10 Scroll down below the closing entries and look at the post-closing trial balance. The amounts have been automatically calculated using formulas. When you have finished the problem, ask your teacher to check your work. Step 11 Save the spreadsheet using the Save option from the File menu. Step 12 Print the completed spreadsheet. TIP 10-9B: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. TIP10-9C: When printing a long spreadsheet with multiple parts, you may want to insert page breaks between the sections so that each one begins printing at the top of a new page. Page breaks have already been entered into this spreadsheet template. Check your program s Help file for instructions on how to enter page breaks. Step 13 Exit the spreadsheet program. Step 14 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 10-9 from your textbook. What-If Analysis TIP 10-9D: Remember, always save your work before performing What- If Analysis. Be sure to rename the spreadsheet if you save your work after performing What-If Analysis. If Cash in Bank were $5,000 and Advertising Expense were $4,000, what would Job Connect s net income be? What would Job Connect s ending capital be? 22 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

11-6 Reconciling the Bank Statement Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 11-6 in your textbook. This problem involves reconciling a bank statement for Outback Guide Service. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 11-6 from the Chapter 11 drop-down list. The template should look like the one below. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 23

Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 The balance shown on the bank statement is $2,272.36. Move the cell pointer to cell E12 and type the bank statement balance: 2272.36. (Remember, it is not necessary to include a comma as part of the entry.) Step 7 A deposit was not reflected on the bank statement. Move the cell pointer to cell D15 and type the amount of the deposit. Step 8 Beginning in cell D19, type the amounts for the outstanding checks. The spreadsheet template will automatically calculate the adjusted bank balance. Step 9 Move the cell pointer to cell E26 and type the checkbook balance. Step 10 No interest was earned for the period, so there are no additions to the checkbook balance. Move the cell pointer to cell D29 and type 0 as the amount of interest earned. Step 11 Move the cell pointer to cell D33 and type the amount of the bank service charge. Step 12 Move the cell pointer to cell D34 and type the amount of the NSF check. The spreadsheet template will automatically calculate the adjusted checkbook balance. Step 13 The adjusted bank balance and adjusted checkbook balance should be equal. If they are not equal, find the error(s) and make the necessary corrections. When the balances are equal, ask your teacher to check your work. Step 14 Save the spreadsheet using the Save option from the File menu. Step 15 Print the completed spreadsheet. Step 16 Exit the spreadsheet program. Step 17 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 11-6 from your textbook. 24 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

12-6 Preparing a Payroll Register Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 12-6 in your textbook. This problem involves preparing a payroll register. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 12-6 from the Chapter 12 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the marital status, number of allowances, total hours worked, and hourly rate for each employee in the appropriate cells of the spreadsheet template. The spreadsheet template will automatically calculate the regular earnings, overtime earnings, total earnings, Social Security tax, Medicare tax, and state income tax for each employee. TIP12-6A: The cells for Social Security tax, Medicare tax, and state income tax are set up to round these numbers to two decimal places. When you are typing data in this spreadsheet template, always round numbers to two decimal places when rounding is necessary. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 25

Step 7 Step 8 Use the tax tables in your textbook to determine the federal income tax for each employee. Type the federal income tax for each employee. Type the hospital insurance deduction of $6.75 for the employees who have health and hospital insurance. Step 9 Type the union dues of $4.50 for the employees who are union members. The spreadsheet template automatically calculates the total deductions and net pay for each employee. When you have typed all of the data, ask your teacher to check your work. Step 10 Save the spreadsheet using the Save option from the File menu. Step 11 Print the completed spreadsheet. TIP12-6B: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. Step 12 Exit the spreadsheet program. Step 13 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 12-6 from your textbook. What-If Analysis If James Dumser worked 43 hours, what would his net pay be? TIP12-6C: Remember to update the federal withholding tax to reflect Mr. Dumser s gross pay. 26 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

13-6 Calculating Employer s Payroll Taxes Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 13-6 in your textbook. This problem involves calculating employer s payroll taxes. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 13-6 from the Chapter 13 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the total gross earnings for the first employee in cell A11 of the spreadsheet template: 914.80. The spreadsheet template will automatically calculate the Social Security tax, Medicare tax, federal unemployment tax, and state unemployment tax for the first employee using the rates stated in your textbook. TIP13-6A: The cells for Social Security tax, Medicare tax, federal unemployment tax, and state unemployment tax are set up to round these numbers to two decimal places. When you are typing data in this spreadsheet template, always round numbers to two decimal places when rounding is necessary. Step 7 Type the total gross earnings for the remaining employees. The Social Security tax, Medicare tax, federal unemployment tax, and state unemployment tax will be automatically calculated for each employee. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 27

TIP13-6B: To check your work, multiply the total gross earnings of each employee by the tax rates given in your textbook. When you have typed all of the data, ask your teacher to check your work. Step 8 Save the spreadsheet using the Save option from the File menu. Step 9 Print the completed spreadsheet. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 13-6 from your textbook. What-If Analysis What would the employer s payroll taxes be on total gross earnings of $1,891.02, assuming the employee had not reached the taxable earnings limit? 28 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

15-5 Determining Due Dates and Discount Amounts Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 15-5 in your textbook. This problem involves determining the due date, discount amount, and amount to be paid for six invoices. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 15-5 from the Chapter 15 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the invoice number, invoice date, credit terms, and invoice amount for the first invoice in the appropriate cells of the spreadsheet template. The spreadsheet template will automatically calculate the due date, discount amount, and amount to be paid for the first invoice. TIP15-5A: Type dates as month/day in the spreadsheet template. For example, enter March 5 as 3/5. The spreadsheet will automatically convert this to a date format. Step 7 Check your work by checking the due date, discount amount, and amount to be paid against your textbook, since the first invoice has been completed for you. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 29

Step 8 Continue to type the invoice number, invoice date, credit terms, and invoice amount for the remaining invoices. The due date, discount amount, and amount to be paid will be automatically calculated for each invoice. TIP15-5C: Be careful when you type the last invoice number: 00985. Many spreadsheet programs will not recognize the two zeroes at the beginning of the number and will show it in the template as 985. To show the two zeroes at the beginning of the number, you must type an apostrophe before the number: '00985. The apostrophe indicates that the number should be shown as a label, meaning that all the digits will show including the beginning zeroes. When you have typed all of the data, ask your teacher to check your work. Step 9 Save the spreadsheet using the Save option from the File menu. Step 10 Print the completed spreadsheet. Step 11 Exit the spreadsheet program. Step 12 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 15-5 from your textbook. What-If Analysis Suppose the invoice amount for Invoice #34120 were $2,001.03. What would the discount be? What would the amount to be paid be? 30 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

18-5 Completing a Ten-Column Work Sheet Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 18-5 in your textbook. This problem involves completing a ten-column work sheet for InBeat CD Shop. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 18-5 from the Chapter 18 drop-down list. The template should look like the one below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. The trial balance amounts are given for you. The first adjustment that must be made is to adjust beginning merchandise inventory of $86,897 to an ending balance of $77,872. To make this adjustment, you must debit Income Summary and credit Merchandise Inventory for the difference between the beginning and ending merchandise inventory amounts. Type the Income Summary adjustment in cell E29 and the Merchandise Inventory adjustment in cell F14. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 31

Step 7 Step 8 Step 9 Notice that, as you type the adjustments, the balances for the affected accounts in the adjusted trial balance change accordingly. Type the remaining adjustments into the Adjustments section of the spreadsheet template. When you have typed all of the adjustments, move the cell pointer into the Adjusted Trial Balance, Income Statement, and Balance Sheet sections of the spreadsheet template. Notice that the amounts for the Adjusted Trial Balance, Income Statement, and Balance Sheet are automatically entered. The program also calculates the column totals and the net income for InBeat CD Shop. When you have finished typing the adjustments, ask your teacher to check your work. Save the spreadsheet using the Save option from the File menu. Print the completed spreadsheet. TIP 18-5A: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 18-5 from your textbook. What-If Analysis If Merchandise Inventory on August 31 were $80,123, what adjustments would be made? What would be the effect on net income? 32 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

19-5 Preparing an Income Statement Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 19-5 in your textbook. This problem involves preparing an income statement for Sunset Surfwear. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 19-5 from the Chapter 19 drop-down list. The template should look like the one on the next page. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 Using the data provided in the work sheet for Sunset Surfwear given in your working papers, type the income statement data into the spreadsheet template in the cells containing the AMOUNT placeholders. The spreadsheet template will automatically calculate the net sales, cost of merchandise sold, gross profit on sales, total operating expenses, operating income, and net income. Remember, it is not necessary to enter a comma or the decimal point and ending zeroes when entering the amounts. Step 7 When you have finished typing the data for the income statement, ask your teacher to check your work. Step 8 Save the spreadsheet using the Save option from the File menu. Step 9 Print the completed spreadsheet. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 33

Analyze Your Work Complete the Analyze activity for Problem 19-5 from your textbook. What-If Analysis If Sunset Surfwear s merchandise inventory on January 1 was $100,000, what would the cost of merchandise sold be? What would net income be? 34 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

20-7 Completing End-of-Period Activities Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 20-7 in your textbook. This problem involves preparing a ten-column work sheet and the end-of-period financial statements for River s Edge Canoe & Kayak. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 20-7 from the Chapter 20 drop-down list. The template should look like the one shown below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. The trial balance amounts in the work sheet are given for you. The first adjustment that must be made is to adjust beginning merchandise inventory of $25,000 to an ending balance of $20,000. To make this adjustment, you must debit Income Summary and credit Merchandise Inventory for the difference between the beginning and ending merchandise inventory amounts. Type the Income Summary adjustment in cell E25 and the Merchandise Inventory adjustment in cell F16. Remember, it is not necessary to include a comma or the Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 35

Step 7 Step 8 decimal point and two zeroes as part of the amount. Notice that, as you type the adjustments, the balances for the affected accounts in the adjusted trial balance change accordingly. Type the remaining adjustments into the Adjustments section of the work sheet. When you have typed all of the adjustments, move the cell pointer into the Adjusted Trial Balance, Income Statement, and Balance Sheet sections of the work sheet. Notice that the amounts for the Adjusted Trial Balance, Income Statement, and Balance Sheet are automatically entered. The program also calculates the column totals and the net income for River s Edge Canoe & Kayak. Now scroll down below the work sheet and look at the income statement, statement of retained earnings, and balance sheet for River s Edge Canoe & Kayak. Notice the financial statements are already completed. This is because the spreadsheet template includes formulas that automatically pull information from the filled-in work sheet to complete the financial statements. Step 9 Now scroll down below the balance sheet and complete the closing entries in the general journal. The account names and posting references are given for you. Step 10 Scroll down below the closing entries and look at the post-closing trial balance. The amounts are automatically calculated using formulas. When you have finished the problem, ask your teacher to check your work. Step 11 Save the spreadsheet using the Save option from the File menu. Step 12 Print the completed spreadsheet. TIP 20-7A: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. TIP 20-7B: When printing a long spreadsheet with multiple parts, you may want to insert page breaks between the sections so that each one begins printing at the top of a new page. Page breaks have already been entered into this spreadsheet template. Check your program s Help file for instructions on how to enter page breaks. Step 13 Exit the spreadsheet program. Step 14 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 20-7 from your textbook. What-If Analysis If unexpired insurance on December 31 were $2,500, what adjustments would be made? What would net income be? How would this affect ending Retained Earnings? 36 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

21-8 Preparing Corporate Financial Statements Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 21-8 in your textbook. This problem involves preparing a statement of stockholders equity and a balance sheet. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 21-8 from the Chapter 21 drop-down list. The template should look like the one shown below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the missing amounts in the statement of stockholders equity in the cells containing the AMOUNT placeholders. Remember, it is not necessary to add a comma or the decimal point and ending zeroes. The total for each line will be automatically computed. TIP 21-8A: To type a negative number, precede the amount typed by a minus sign. The spreadsheet will automatically format the number as negative using parentheses. Step 7 Now scroll down below the statement of stockholders equity and look at the balance sheet. Note the amounts have already been computed. The spreadsheet automatically pulls information from the statement of stockholders equity to complete the balance sheet. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 37

When you have finished entering the amounts, ask your teacher to check your work. Step 8 Save the spreadsheet using the Save option from the File menu. Step 9 Print the completed spreadsheet. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. TIP 21-8B: If your spreadsheet is too wide to fit on an 8.5-inch wide piece of paper, you can change your print settings to print the worksheet landscape. Some spreadsheet applications also allow you to choose a fit to page option. This function will reduce the width and/or depth of the worksheet to fit on one page. Analyze Your Work Complete the Analyze activity for Problem 21-8 from your textbook. What-If Analysis If net income was $511,000, how would this affect retained earnings? 38 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

25-6 Calculating Gross Profit on Sales Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 25-6 in your textbook. This problem involves calculating gross profit on sales using each of the four inventory costing methods. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 25-6 from the Chapter 25 drop-down list. The template should look like the one shown below. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 For each of the four inventory costing methods, type the following data in the appropriate cells of the spreadsheet template: net sales, purchases available for sale, and cost of ending inventory. The spreadsheet will automatically calculate the cost of merchandise sold and the gross profit on sales for each inventory costing method. When you have typed all of the data, ask your teacher to check your work. Step 7 Save the spreadsheet using the Save option from the File menu. Step 8 Print the completed spreadsheet. Step 9 Exit the spreadsheet program. Step 10 In the Close Options window, select the location where you would like to save your work. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 39

Analyze Your Work Complete the Analyze activity for Problem 25-6 from your textbook. What-If Analysis If the cost of ending inventory using the last-in, first-out method was $21,399.13, what would gross profit on sales be? 40 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

27-5 Calculating the Percentage of a Partner s Capital Investment Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 27-5 in your textbook. This problem involves calculating a partner s percentage ownership in a partnership. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 27-5 from the Chapter 27 drop-down list. The template should look like the one shown below. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 Type each partner s individual investment and total partnership investment in the appropriate cells of the spreadsheet template. The spreadsheet template will automatically calculate the partner s percentage ownership. When you have typed all of the data, ask your teacher to check your work. Step 7 Save the spreadsheet using the Save option from the File menu. Step 8 Print the completed spreadsheet. Step 9 Exit the spreadsheet program. Step 10 In the Close Options window, select the location where you would like to save your work. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 41

Analyze Your Work Complete the Analyze activity for Problem 27-5 from your textbook. What-If Analysis If Partner 1 s individual investment was $50,000 and the total partnership investment was $200,000, what would the partner s percentage of the total ownership be? 42 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

28-4 Preparing an Income Statement and Balance Sheet for a Partnership Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 28-4 in your textbook. This problem involves preparing an income statement and a balance sheet for a partnership. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 28-4 from the Chapter 28 drop-down list. The template should look like the one shown below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Joy Webster and Diana Ruiz share in the partnership equally. Therefore, each has a 50% share of the profits. Type Webster s and Ruiz s partnership percentage in cells B10 and B11: 50. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 43

TIP 28-4A: Cells B10 and B11 are formatted for percentages. Therefore, it is not necessary to type a percent sign after the number, nor is it necessary to type the number as a decimal. Step 7 Now type net income in cell C13: 5780. Remember, it is not necessary to type a comma or the decimal point and ending zeroes. The division of net income for Webster and Ruiz will be automatically calculated. Step 8 Now scroll down below the division of net income and look at the partial balance sheet. The partners equity section has been completed. When you have finished the problem, ask your teacher to check your work. Step 9 Save the spreadsheet using the Save option from the File menu. Step 10 Print the completed spreadsheet. Step 11 Exit the spreadsheet program. Step 12 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 28-4 from your textbook. What-If Analysis If Webster s partnership percentage was 60% and Ruiz s partnership percentage was 40%, what would the division of net income be? How would this affect each partner s ending capital? 44 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

28-9 Completing End-of-Period Activities for a Partnership Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 28-9 in your textbook. This problem involves preparing the end-of-period financial statements for a partnership. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 28-9 from the Chapter 28 drop-down list. The template should look like the one shown below. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 45

Step 6 Richard Smooth and Carrie Overhill agree to divide R & C Roofing s net income or loss on the following basis: Smooth, 3/4; Overhill, 1/4. Therefore, Smooth has a 75% partnership percentage, and Overhill has a 25% partnership percentage. Type Smooth s and Overhill s partnership percentages in cells B9 and B10. TIP 28-9A: Cells B9 and B10 are formatted for percentages. Therefore, it is not necessary to type a percent sign after the number, nor is it necessary to type the number as a decimal. Step 7 Step 8 Step 9 Now scroll down below the partnership percentages and look at the income statement, statement of changes in partners equity, and balance sheet for R & C Roofing. Notice the financial statements are already completed, using information from the work sheet in your working papers and from the partnership percentages you typed in cells B9 and B10. When you have finished the problem, ask your teacher to check your work. Save the spreadsheet using the Save option from the File menu. Print the completed spreadsheet. TIP 28-9B: When printing a long spreadsheet with multiple parts, you may want to insert page breaks between the sections so that each one begins printing at the top of a new page. Page breaks have already been entered into this spreadsheet template. Check your program s Help file for instructions on how to enter page breaks. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 28-9 from your textbook. What-If Analysis If Smooth and Overhill shared in the partnership equally, what would the division of net income be? How would this affect each partner s ending capital? 46 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

3A Determining the Effects of Business Transactions on the Accounting Equation Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Additional Reinforcement Problem 3A in your textbook. This problem involves entering transactions in the accounting equation. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 3A from the Appendix G drop-down list. The template should look like the one shown below. Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 47

Step 6 In the first transaction, Ms. Wong, the owner of the business, opened a checking account for the business. Remember from Chapter 2 that two parts of the accounting equation are affected by this transaction: Cash and Pamela Wong, Capital. Cash is increasing, and Pamela Wong, Capital, is increasing. To record this transaction in the spreadsheet template, move the cell pointer to cell B12 and type 48000. TIP 3A-A: Remember, to type data into the cell, you must first key the data and then press <Enter>. Do not type a dollar sign or a comma when you enter the data the spreadsheet template will automatically format the data when it is entered. Step 7 Step 8 Step 9 Next, move the cell pointer to cell J12. Type 48000 in cell J12 to record the increase in Pamela Wong, Capital. Again, do not include a dollar sign or a comma as part of the cell entry the spreadsheet template will automatically format the data when it is entered. Move the cell pointer to cell J24. Notice that the spreadsheet automatically calculates the balance in each account as you type the data. To check your work, look at rows 27 through 31 in column D. Total assets equal $48,000. Total liabilities plus owner s equity also equal $48,000. The accounting equation is in balance. Analyze the remaining transactions in Problem 3A and type the appropriate data into the spreadsheet template. TIP 3A-B: To decrease an account balance, precede the amount typed by a minus sign. For example, to decrease Cash in Bank by $1,500, type 1500 in the Cash in Bank column. Check the totals at the bottom of the spreadsheet after each transaction has been entered. Remember, total assets should always equal total liabilities plus owner s equity. If the accounting equation becomes out of balance, check your work closely to find the error, and make any necessary corrections. When you have entered all of the transactions, ask your teacher to check your work. Step 10 Save the spreadsheet using the Save option from the File menu. Step 11 Print the completed spreadsheet. Step 12 Exit the spreadsheet program. Step 13 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 3A from your textbook. What-If Analysis If Ms. Wong paid $550 cash for a new printer for the business, what would the Cash in Bank balance be? 48 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

23A Calculating and Recording Depreciation Expense Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 23A in your textbook. This problem involves preparing a depreciation schedule. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 23A from the Appendix G drop-down list. It should look like this: Step 5 Type your name and today s date in the cells containing the (name) and (date) placeholders. Step 6 Type the cost, original book value, and salvage value of the delivery truck in the cells containing the AMOUNT placeholders. The annual depreciation, accumulated depreciation, and book value for each year will be automatically computed. When you are done, ask your teacher to check your work. Step 7 Save the spreadsheet using the Save option from the File menu. Step 8 Print the completed spreadsheet. Step 9 Exit the spreadsheet program. Step 10 In the Close Options window, select the save location. Analyze Your Work Complete the Analyze activity for Problem 23A from your textbook. What-If Analysis If the salvage value was $1,500, what would the annual depreciation for each year be? Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 49

26A Calculating Current and Future Interest Student Name Date Complete the Spreadsheet Step 1 Step 2 Step 3 Step 4 Read the instructions for Problem 26A in your textbook. This problem involves determining the maturity date and interest expense to be paid in the current and following year for ten notes. Go to the Glencoe Accounting Online Learning Center at glencoe.com. From the Student Center menu, click on Spreadsheet Templates. Select template 26A from the drop-down list. The template should look like the one shown below. Step 5 Step 6 Type your name and today s date in the cells containing the (name) and (date) placeholders. Type the amount and interest rate for the first note in the appropriate cells of the spreadsheet template. The spreadsheet template will automatically calculate the interest for the current year and following year for the first note. TIP 26A-A: When entering the interest rates, it is not necessary to type a percent sign after the number, nor is it necessary to type the number as a decimal. For example, enter 9% as 9 in cell D11. The spreadsheet will automatically format this as a percent. 50 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Step 7 Continue to type the amount and interest rate for the remaining notes. The current year interest and following year interest will be automatically calculated for each note. When you have typed all of the data, ask your teacher to check your work. Step 8 Save the spreadsheet using the Save option from the File menu. Step 9 Print the completed spreadsheet. Step 10 Exit the spreadsheet program. Step 11 In the Close Options window, select the location where you would like to save your work. Analyze Your Work Complete the Analyze activity for Problem 26A from your textbook. What-If Analysis Suppose the note amount for Note #10 was $3,333. What would the current year interest be? What would the following year interest be? Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 51

SECTION 5 Solutions Problem 3-9 Determining the Effects of Transactions on the Accounting Equation 53 Problem 4-6 Analyzing Transactions into Debit and Credit Parts 54 Problem 5-8 Completing the Accounting Equation 55 Problem 8-4 Preparing a Six-Column Work Sheet 56 Problem 8-8 Completing the Work Sheet 57 Problem 9-8 Preparing a Statement of Changes in Owner s Equity 58 Problem 10-9 Completing End-of-Period Activities 59 Problem 11-6 Reconciling the Bank Statement 62 Problem 12-6 Preparing a Payroll Register 63 Problem 13-6 Calculating Employer s Payroll Taxes 64 Problem 15-5 Determining Due Dates and Discount Amounts 65 Problem 18-5 Completing a Ten-Column Work Sheet 66 Problem 19-5 Preparing an Income Statement 67 Problem 20-7 Completing End-of-Period Activities 68 Problem 21-8 Preparing Corporate Financial Statements 70 Problem 25-6 Calculating Gross Profit on Sales 71 Problem 27-5 Calculating the Percentage of a Partner s Capital Investment 72 Problem 28-4 Preparing an Income Statement and Balance Sheet for a Partnership 73 Problem 28-9 Completing End-of-Period Activities for a Partnership 74 Problem 3A Determining the Effects of Business Transactions on the Accounting Equation 76 Problem 23A Calculating and Recording Depreciation Expense 77 Problem 26A Calculating Current and Future Interest 78 52 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

3-9 Determining the Effects of Transactions on the Accounting Equation Solution Analyze Your Work $2,500 is owed to creditors after Transaction 10. What-If Analysis The balance in the Juanita Ortega, Capital account would be $56,650. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 53

4-6 Analyzing Transactions into Debit and Credit Parts Solution Analyze Your Work The ending balance of the Computer Equipment account is $0.00. What-If Analysis The balance in the Cash in Bank account would be $48,625. 54 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

5-8 Completing the Accounting Equation Solution Analyze Your Work The sum of owner s equity is $44,611. What-If Analysis Assets = $92,216. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 55

8-4 Preparing a Six-Column Work Sheet Solution Analyze Your Work The permanent accounts with normal debit balances are Cash in Bank, A/R Helen Katz, A/R Polk & Co., Office Suppies, Office Equipment, and Camping Equipment. What-If Analysis Wilderness Rentals will have a net loss of $471. 56 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

8-8 Completing the Work Sheet Solution Analyze Your Work The total owner s equity is $42,834. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 57

9-8 Preparing a Statement of Changes in Owner s Equity Solution Analyze Your Work Salaries Expense was the largest expense for the business during the period. What-If Analysis The beginning capital balance would be $15,082. 58 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

10-9 Completing End-of-Period Activities Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 59

60 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Analyze Your Work Advertising Expense is the greatest expenditure for the period of $3000. What-If Analysis Job Connect s net income would be $800. Job Connect s ending capital would be $21,400. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 61

11-6 Reconciling the Bank Statement Solution Analyze Your Work The balance in the Miscellaneous Expense account is $70. 62 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

12-6 Preparing a Payroll Register Solution Analyze Your Work James Dumser had the greatest amount withheld for federal income tax for the week, $29.00. What-If Analysis If James Dumser worked 43 hours, his net pay would be $222.31. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 63

13-6 Calculating Employer s Payroll Taxes Solution Analyze Your Work The maximum federal unemployment tax is 6.2%. Employers may deduct up to 5.4% of the state unemployment taxes from federal unemployment taxes. Most employees pay a federal tax of.8% (6.2% - 5.4%), as a result. What-If Analysis With gross earnings of $1,891.02, Social Security tax would be $117.24, Medicare tax would be $27.42, federal unemployment tax would be $15.13, and state unemployment tax would be $102.12. 64 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

15-5 Determining Due Dates and Discount Amounts Solution Analyze Your Work Sunset Surfwear will save $271.63 if all discounts are taken. What-If Analysis The discount would be $40.02. The amount to be paid would be $1,961.01. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 65

18-5 Completing a Ten-Column Work Sheet Solution Analyze Your Work After the adjustments were made on the work sheet, Salaries Expense had the highest balance. What-If Analysis The adjustments would be a debit to Income Summary of $6,774 and a credit to Merchandise Inventory of $6,774. Net income would increase by $2,251. 66 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

19-5 Preparing an Income Statement Solution Analyze Your Work Purchases Returns and Allowances is larger for the period. What-If Analysis The cost of merchandise sold would be $93,022. Net income would be $4,715. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 67

20-7 Completing End-of-Period Activities Solution 68 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Analyze Your Work Yes, the company made a profit of $41,285.00 for the year. What-If Analysis The adjustments would be a debit to Insurance Expense for $500 and a credit to Prepaid Insurance for $500. Net income would be $41,985. This would increase Retained Earnings by $700. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 69

21-8 Preparing Corporate Financial Statements Solution Analyze Your Work Total stockholders equity on December 31 is $2,402,500. What-If Analysis Retained Earnings would increase by $86,000 to $938,500. 70 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

25-6 Calculating Gross Profit on Sales Solution Analyze Your Work The FIFO method resulted in the largest gross profit on sales. What-If Analysis Gross profit on sales would be $17,652.74. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 71

27-5 Calculating the Percentage of a Partner s Capital Investment Solution Analyze Your Work In partnership 1, Partner A s share is 0.3333 or 1 /3. The other partners control 0.6667 or 2 /3. In partnership 4, Partner A s share is 0.75 or 3 /4. The other partners control 0.25 or 1 /4. What-If Analysis Partner 1 s percentage of the total ownership would be 25%. 72 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

28-4 Preparing an Income Statement and Balance Sheet for a Partnership Solution Analyze Your Work The ending balance for Webster, Capital = $7,090. The ending balance for Ruiz, Capital = $7,190. What-If Analysis Webster s share of net income would be $3,468. Ruiz s share of net income would be $2,312. Webster s ending capital would increase by $578. Ruiz s ending capital would decrease by $578. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 73

28-9 Completing End-of-Period Activities for a Partnership Solution 74 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

Analyze Your Work If Smooth or Overhill had not made withdrawals, the total equity balance at year end would have been $86,132. What-If Analysis Each partner s share of net income would be $13,178. Smooth s ending capital would decrease by $6,589 and Overhill s ending capital would increase by $6,589. Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 75

3A Determining the Effects of Business Transactions on the Accounting Equation Solution Analyze Your Work (A) The total amount of equipment assets is $8,000. (B) The total amount of assets is $49,800. (C) Total liabilities and owner s equity is $49,800. (D) Yes, the accounting equation is in balance. What-If Analysis Cash in Bank would be $39,950. 76 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course

23A Calculating and Recording Depreciation Expense Solution Analyze Your Work $78,000 in depreciation expense will be recorded over the useful life of the delivery truck. The Accumulated Depreciation Delivery Truck account will show all the depreciation recorded for this asset over its useful life. What-If Analysis 2004, $6,450; 2005 and 2006, $25,800; and 2007, $19,350 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course 77

26A Calculating Current and Future Interest Solution Analyze Your Work Three of the notes have more interest applied to the following year than the current year. The notes maturing on February 3, March 10, and March 1 have more interest in the following year. What-If Analysis The current year interest would be $111.10. The following year interest would be $88.88. 78 Spreadsheet Applications User Guide with Instruction Sheets and Solutions First-Year Course