Excel Templates

to accompany
Fundamental Accounting Principles,
14th Edition, by Larson/Jensen

prepared by
Ian Feltmate, Acadia University
Given Data:
Note: See 'Part 2' for unadjusted trial balance

a) Expired insurance coverage $ 1,250

b) Teaching supplies on hand at end of year $ 450
c) Annual depreciation on the equipment $ 8,000
d) Annual depreciation on the professional library $ 4,500
e) Monthly extension fee for 6 month course, received November 1 $ 950
Number of months paid in advance 5
f) Monthly tuition fee for 4 month course, beginning October 15 $ 1,200
g) Wage rate per day, for each employee $ 180
Number of employees 2
Days' wages accrued 2
h) Balance in Prepaid rent represents rent for December, January and February

Account Titles for Journal Entries:

Cash
Accounts receivable
Teaching supplies
Prepaid insurance
Prepaid rent
Professional library
Accumulated depreciation, professional library
Equipment
Accumulated depreciation, equipment
Accounts payable
Salaries payable
Unearned extension fees
Karoo Ashevak, capital
Karoo Ashevak, withdrawals
Tuition fees earned
Extension fees earned
Depreciation expense, equipment
Depreciation expense, professional library
Salaries expense
Insurance expense
Rent expense
Teaching supplies expense
Advertising expense
Utilities expense
INSTRUCTIONS FOR PREPARING JOURNAL ENTRIES

ACCOUNT NAMES. When you click on a cell in the "Accounts" column, a downward-pointing arrow will
appear at the far right of the cell. Clicking on the arrow will cause a menu of account names to appear.
To select an account name, simply click on it.

To indent names of accounts you are crediting, do not type blank spaces in front of the account name
(that is normally poor practice when building spreadsheets). Instead, do the following:

1. Click on the tab for the Home ribbon.

2. Select the cell containing the account name you wish to indent.
3. Click on the “Increase Indent” icon in the Alignment section of the Home ribbon. It looks like this:

EXPLANATIONS. The final row for each entry can be used for an explanation, if your instructor requires
one. If your explanation uses more than one line, you may increase the height of the row as follows:

1. Select the row header at the far left of the worksheet. (For example, if you wish to increase the height
of Row 10, click on the “10” at the far left of the worksheet. The entire row should then be selected.)
2. Put the mouse cursor over the bottom border of the row. The cursor’s appearance will change to two
arrows (one pointing up, the other down) separated by a line.
3. Holding the left mouse key down, drag the mouse until the row is the desired height.
<Type your name here>
<Type your class here>
Excel Templates Problem 3-6A
Part 1

Date Account Titles Debit Credit

2017
a) Dec. 31 Insurance expense 1,250
Prepaid insurance 1,250

Explanation:

b) 31 Teaching supplies expense 6,050

Teaching supplies 6,050

Explanation:6500 - 450 = 6050

c) 31 Depreciation expense, equipment 8,000

Accumulated depreciation, equipment 8,000

Explanation:

d) 31 Depreciation expense, professional library 4,500

Accumulated depreciation, professional library 4,500

Explanation:

e) 31 Unearned extension fees 1,900

Extension fees earned 1,900

Explanation:950*2=1900, two months revenue earned

f) 31 Accounts receivable 3,000

Tuition fees earned 3,000
Explanation:1200*2.5 =3000, as 2.5 months have passed, 2.5 months tution fees will be
considered

g) 31 Salaries expense 720

Salaries payable 720

Explanation:2 employees*3dys*120 per day = 720

h) 31 Rent expense 2,400

Prepaid rent 2,400

Explanation:One month rent= 7200/3 = 2400

<Type your name here>
<Type your class here>
Excel Templates Problem 3-6A
Part 2

PACRIM CAREERS
Trial Balances
December 31, 2014

Unadjusted Trial Balance Adjustments Adjusted Trial Balance

Accounts Debit Credit Debit Credit Debit
Cash $ 18,000 $ 18,000
Accounts receivable -0- f) 3,000 $ 3,000
Teaching supplies 6,500 b) 6,050 $ 450
Prepaid insurance 1,400 a) 1,250 $ 150
Prepaid rent 7,200 h) 2,400 $ 4,800
Professional library 60,000 $ 60,000
Accumulated depreciation,
professional library $ 18,000 d) 4,500
Equipment 96,000 $ 96,000
Accumulated depreciation,
equipment 32,000 c) 8,000
Accounts payable 2,500
Salaries payable -0- g) 720
Unearned extension fees 6,300 e) 1,900
Karoo Ashevak, capital 229,000
Karoo Ashevak, withdrawals 92,000 $ 92,000
Tuition fees earned 196,000 f) 3,000
Extension fees earned 72,500 e) 1,900
Depreciation expense,
equipment -0- c) 8,000 $ 8,000
Depreciation expense,
professional library -0- d) 4,500 $ 4,500
Salaries expense 206,000 g) 720 $ 206,720
Insurance expense -0- a) 1,250 $ 1,250
Rent expense 44,000 h) 2,400 $ 46,400
Teaching supplies expense -0- b) 6,050 $ 6,050
Advertising expense 14,000 $ 14,000
Utilities expense 11,200 $ 11,200
Totals $ 556,300 $ 556,300 $ 27,820 $ 27,820 $ 572,520
Adjusted Trial Balance
Credit

22,500

40,000
2,500
720
4,400
229,000

199,000
74,400

$ 572,520
<Type your name here>
<Type your class here>
Excel Templates Problem 3-6A
Part 3

Calculation of overstatement or understatement of net income from not recording adjusting entries:

If adjustments were not recorded, the net income would be overstated by:
Expenses - Revenues
Expesnes = 22920
Revenues = 4900
Overstated = 18020
<Type your name here>
<Type your class here>
Excel Templates Problem 3-6A
Part 4

Is it ethical to ignore adjusting entries?

(Place your answer on the sheet below. If you click near the middle of the sheet, a blinking
cursor will appear in the upper left corner of the sheet. If you click on the curled portion of the
sheet in the lower right corner, the sheet will be selected so that you can increase or
decrease its size.)