Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text.

And information or data which may be required by the solution will be entered in cells with borders to help identify them.

Be advised, the template workbooks and worksheets are not protected.Overtyping any data may remove it.

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.

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.

document.xlsx, E3-5, Page 3 of 12, 04/19/2023, 10:49:45

Name: Date:

Instructor: Course:

Debit CreditPrepaid Insurance $3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation - Equipment $8,400 Notes Payable 20,000 Unearned Rent Revenue 9,300 Rent Revenue 60,000 Interest Expense 0 Salaries and Wage Expense 14,000

Totals: $45,400 $97,700

An analysis of the accounts shows the following:$250

$500 $650 $300

Depreciation Expense Interest PayableInsurance Expense Supplies Expense

1 Account Title AmountAccount Title Amount

Text / Memo Line - Optional

2 Account Title AmountAccount Title Amount

Text / Memo Line - Optional

3 Account Title AmountAccount Title Amount

Text / Memo Line - Optional

4 Account Title AmountAccount Title Amount

Text / Memo Line - Optional

5 Account Title AmountAccount Title Amount

Text / Memo Line - Optional

Intermediate Accounting, 15h Edition by Kieso, Weygandt, and Warfield

E3-5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includesthe following selected accounts before adjusting entries have been prepared.

1. The equipment depreciation per month is:2. One-third of the unearned rent was earned during the quarter.3. Interest accrued for the month on notes payable is:4. Supplies on hand total:5. The monthly insurance expiration rate is:

Instructions:Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: (Omit explanations.)

document.xlsx, E3-5 Solution, Page 4 of 12, 04/19/2023, 10:49:45

Name: Solution Date:

Instructor: Course:

Debit CreditPrepaid Insurance $3,600 Supplies 2,800 Equipment 25,000 Accumulated Depreciation - Equipment $8,400 Notes Payable 20,000 Unearned Rent Revenue 9,300 Rent Revenue 60,000 Interest Expense 0 Salaries and Wage Expense 14,000

Totals: $45,400 $97,700

An analysis of the accounts shows the following:$250

$500 $650 $300

Depreciation Expense Interest PayableInsurance Expense Supplies Expense

1 Depreciation Expense ($250 per month × 3 months) 750 Accumulated Depreciation - Equipment 750

End of quarter adjusting entry - Depreciation Expense / Equipment

2 Unearned Rent Revenue ($9,300 / 3) 3,100 Rent Revenue 3,100

End of quarter adjusting entry - Unearned Rent Revenue / Rent Revenue

3 Interest Expense 500 Interest Payable 500

End of quarter adjusting entry - Interest Expense / Interest Payable

4 Supplies Expense ($2,800 - $650) 2,150 Supplies 2,150

End of quarter adjusting entry - Supplies Expense / Supplies

5 Insurance Expense ($300 per month × 3 months) 900 Prepaid Insurance 900

End of quarter adjusting entry - Insurance Expense / Prepaid Insurance

Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield

E3-5 (Adjusting Entries) The ledger of Duggan Rental Agency on March 31 of the current year includesthe following selected accounts before adjusting entries have been prepared.

1. The equipment depreciation per month is:2. One-third of the unearned rent was earned during the quarter.3. Interest accrued for the month on notes payable is:4. Supplies on hand total:5. The monthly insurance expiration rate is:

Instructions:Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: (Omit explanations.)

document.xlsx, E3-8, Page 5 of 12, 04/19/2023, 10:49:45

Name: Date:

Instructor: Course:

$1,900

estimated the bill would be approximately: $600 $60,000 from a local bank on a 15

-year mortgage. The annual interest rate is 8%$117 covering August charges is unpaid at

August 31.

1Account Title Amount

Account Title AmountText / Memo line

2Account Title Amount

Account Title AmountText / Memo line

3Account Title Amount

Account Title AmountText / Memo line

4Account Title Amount

Account Title AmountText / Memo line

Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield

E3-8 (Adjusting Entries) Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.

1. At August 31, Roddick owed his employees salaries $1,900 in wages that will be paid on September 1.

2. At the end of the month he had not yet received the month's utility bill. Based on past experience, he

3. On August 1, Bryant borrowed

4. A telephone bill in the amount of

Instructions:Prepare the adjusting journal entries as of August 31, 2014.

document.xlsx, E3-8 Solution, Page 6 of 12, 04/19/2023, 10:49:45

Name: Solution Date:

Instructor: Course:

$1,900

estimated the bill would be approximately: $600 $60,000 from a local bank on a 15

-year mortgage. The annual interest rate is 8%$117 covering August charges is unpaid at

August 31.

1Salaries and Wages Expense 1,900

Salaries and Wages Payable 1,900 To record wages payable at 08/31

2Utilities Expense 600

Accounts Payable 600 To record utilities payable at 08/31

3Interest Expense ($60,000 × 8.00% × (1/12)) 400

Interest Payable 400 To record interest payable at 08/31

4Utilities Expense 117

Accounts Payable 117 To record telephone expense / payable at 08/31

Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield

E3-8 (Adjusting Entries) Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is trying to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.

1. At August 31, Roddick owed his employees $1,900 in wages that will be paid on September 1.

2. At the end of the month he had not yet received the month's utility bill. Based on past experience, he

3. On August 1, Roddick borrowed

4. A telephone bill in the amount of

Instructions:Prepare the adjusting journal entries as of August 31, 2014.

document.xlsx, Problem 3-2, Page 7 of 12, 04/19/2023, 10:49:45

Name: Date:

Instructor: Course:

MASON ADVERTISING AGENCYTrial Balance

December 31, 2014Unadjusted Adjusted

Debit Credit Debit CreditCash $11,000 $11,000 Accounts Receivable 20,000 23,500 Supplies 8,400 3,000 Prepaid Insurance 3,350 2,500 Equipment 60,000 60,000 Accumulated Depreciation - Equipment $28,000 $33,000 Accounts Payable 5,000 5,000 Interest Payable 0 150 Notes Payable 5,000 5,000 Unearned Service Revenue 7,000 5,600 Salaries and Wages Payable 0 1,300 Common Stock 10,000 10,000 Retained Earnings 3,500 3,500 Service Revenue 58,600 63,500 Salaries and Wages Expense 10,000 11,300 Insurance Expense 850 Interest Expense 350 500 Depreciation Expense 5,000 Supplies Expense 5,400 Rent Expense 4,000 4,000 Totals: $117,100 $117,100 $127,050 $127,050

Instructions:

Dec 31Account Title Amount

Account Title Amount

Dec 31Account Title Amount

Account Title Amount

Dec 31Account Title Amount

Account Title Amount

Dec 31Account Title Amount

Account Title Amount

Dec 31Account Title Amount

Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield

P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January2008. Presented below are adjusted and unadjusted trial balances as of December 31, 2012.

(a) Journalize the annual adjusting entries that were made. (Omit explanations.)

document.xlsx, Problem 3-2, Page 8 of 12, 04/19/2023, 10:49:45

Name: Date:

Instructor: Course:Dec 31

Account Title Amount

Dec 31Account Title Amount

Account Title Amount

Dec 31Account Title Amount

Account Title Amount

MASON ADVERTISING AGENCYIncome Statement

For the Year Ended December 31, 2014RevenuesAccount Title AmountExpensesAccount Title AmountAccount Title AmountAccount Title AmountAccount Title AmountAccount Title AmountAccount Title Amount

Total expenses FormulaNet income Formula

MASON ADVERTISING AGENCYStatement of Retained Earnings

For the Year Ended December 31, 2014Retained Earnings, Jan 1 AmountAdd: Title AmountRetained Earnings, Dec 31 Formula

MASON ADVERTISING AGENCYBalance Sheet

December 31, 2014Assets

Account Title AmountAccount Title AmountAccount Title AmountAccount Title AmountAccount Title AmountAccount Title Amount Formula

Total Assets Formula

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014 and an unclassified balance sheet at December 31.

document.xlsx, Problem 3-2, Page 9 of 12, 04/19/2023, 10:49:45

Name: Date:

Instructor: Course:Liabilities and Stockholders' Equity

LiabilitiesAccount Title AmountAccount Title AmountAccount Title AmountAccount Title AmountAccount Title Amount

Total Liabilities Formula

Stockholders' EquityAccount Title AmountAccount Title Amount Formula

Total liabilities and stockholders' equity Formula

3 months, what is the annual interest rate on that note?

Enter text answer here.

$12,500 in salaries and wages in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013

Enter text answer here.

(c) Answer the following questions:(1) If the note has been outstanding

(2) If the company paid

document.xlsx, Problem 3-2 Solution, Page 10 of 12, 04/19/2023, 10:49:45

Name: Solution Date:

Instructor: Course:

MASON ADVERTISING AGENCYTrial Balance

December 31, 2014Unadjusted Adjusted

Debit Credit Debit CreditCash $11,000 $11,000 Accounts Receivable 20,000 23,500 Supplies 8,400 3,000 Prepaid Insurance 3,350 2,500 Equipment 60,000 60,000 Accumulated Depreciation - Equipment $28,000 $33,000 Accounts Payable 5,000 5,000 Interest Payable 0 150 Notes Payable 5,000 5,000 Unearned Service Revenue 7,000 5,600 Salaries and Wages Payable 0 1,300 Common Stock 10,000 10,000 Retained Earnings 3,500 3,500 Service Revenue 58,600 63,500 Salaries and Wages Expense 10,000 11,300 Insurance Expense 850 Interest Expense 350 500 Depreciation Expense 5,000 Supplies Expense 5,400 Rent Expense 4,000 4,000 Totals: $117,100 $117,100 $127,050 $127,050

Instructions:

Dec 31Accounts Receivable 3,500

Service Revenue 3,500

Dec 31Unearned Service Revenue 1,400

Service Revenue 1,400

Dec 31Supplies Expense 5,400

Supplies 5,400

Dec 31Depreciation Expense 5,000

Accumulated Depreciation - Equipment 5,000

Dec 31Interest Expense 150

Interest Payable 150

Intermediate Accounting, 15th Edition by Kieso, Weygandt, and Warfield

P3-2 (Adjusting Entries and Financial Statements) Mason Advertising Agency was founded in January2010. Presented below are adjusted and unadjusted trial balances as of December 31, 2014.

(a) Journalize the annual adjusting entries that were made. (Omit explanations.)

document.xlsx, Problem 3-2 Solution, Page 11 of 12, 04/19/2023, 10:49:45

Name: Solution Date:

Instructor: Course:

Dec 31Insurance Expense 850

Prepaid Insurance 850

Dec 31Salaries and Wages Expense 1,300

Salaries and Wages Payable 1,300

MASON ADVERTISING AGENCYIncome Statement

For the Year Ended December 31, 2014RevenuesService Revenue $63,500 ExpensesSalaries and Wages Expense $11,300 Supplies Expense 5,400 Depreciation Expense 5,000 Rent Expense 4,000 Insurance Expense 850 Interest Expense 500

Total expenses 27,050 Net income $36,450

MASON ADVERTISING AGENCYStatement of Retained Earnings

For the Year Ended December 31, 2014Retained Earnings, Jan 1 $3,500 Add: Net Income 36,450 Retained Earnings, Dec 31 $39,950

MASON ADVERTISING AGENCYBalance Sheet

December 31, 2014Assets

Cash $11,000 Accounts Receivable 23,500 Supplies 3,000 Prepaid Insurance 2,500 Equipment $60,000 Less: Accumulated Depreciation - Equipment 33,000 27,000

Total Assets $67,000

(b) Prepare an income statement and a statement of retained earnings for the year ending December 31, 2014, and an unclassified balance sheet at December 31.

document.xlsx, Problem 3-2 Solution, Page 12 of 12, 04/19/2023, 10:49:45

Name: Solution Date:

Instructor: Course:Liabilities and Stockholders' Equity

LiabilitiesNotes Payable $5,000 Accounts Payable 5,000 Unearned Service Revenue 5,600 Salaries and Wages Payable 1,300 Interest Payable 150

Total Liabilities $17,050

Stockholders' EquityCommon Stock $10,000 Retained Earnings 39,950 49,950

Total liabilities and stockholders' equity $67,000

3 months, what is the annual interest rate on that note?

$12,500 in salaries and wages in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013?

(c) Answer the following questions:(1) If the note has been outstanding

Interest is ($150 / 3 months) $50 per month or ($5,000 / $50) 1.00% of the note payable. This 1.00% × 12 months equals an annual interest rate of 12.00% interest per year.

(2) If the company paid

Salaries and Wages Expense, $11,300 less Salaries and Wages Payable 12/31/14, $1,300 = $10,000. Total payments, $12,500 - $10,000 = $2,500 Salaries and Wages Payable 12/31/13.