Be advised, the template workbooks and worksheets are not protected.

Overtyping any data may remove it.

Extensive detail and information is contained within the help function of Microsoft Excel and in the provided text.
You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed
on the top of each page if the template requires more than one page.
Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly
of multiple pages.
If more than one page is required by the template, manual page breaks have been set to provide consistent
presentation.
All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the
text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the
appropriate cells.
In general, the highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account
title(s), values, memorandum appropriate to the entry, or text answers to questions.
And information or data which may be required by the solution will be entered in cells with borders to help identify them.
Where a highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that
Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01,
2012, in the format set in the template.
Where a highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step
of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously
entered.
Where a highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry
and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is
provided and you can use the "look to" formula to reference the appropriate account title without typing it.
Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for
Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be
acceptable.
Where a highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step
of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not
be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through
formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of
the formatting found in the templates to meet your desires.
Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate
for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with
borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference,
"=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial
text provided for Microsoft Excel.
Instructions, Page 1 of 6, 08/21/2016, 23:12:31

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.

Instructions, Page 2 of 6, 08/21/2016, 23:12:31

Name:
Date:
11/07/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E6-2 (Simple and Compound Interest Computations) Alan Jackson invests

$20,000
at
8%
annual interest, leaving the money
8
years. At the
end of the
8
years, Alan withdrew the accumulated amount of money.
Instructions:
(a) Compute the amount Alan would withdraw assuming the investment earns simple interest.
Simple Interest= 20000*8%=1600 int per year *8 years
Principal
Total to Withdraw

$12,800
$20,000
$32,800

(b) Compute the amount Alan would withdraw assuming the investment earns interest compounded
annually.
Interest compounded annually=future value of 1 at 8% for 8 periods=1.85093
1.85093
Principal
$20,000
Total to Withdraw
$37,018.60
(c) Compute the amount Alan would withdraw assuming the investment earns interest compounded
semi-annually.
Interest compounded semi-annually=future value of 1 at 4% for 16 periods
1.87298
Principal
$20,000
Text Title
$37,459.60

327448358.xlsx, Exercise 6-2, Page 3 of 6, 08/21/2016, 23:12:31

Name:
Date:
11/07/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

E6-3 (Computation of Future Values and Present Values) Using the appropriate interest table or Excel
formula, answer each of the following questions: (Each case is independent of the others.)
(a) What is the future value of
compounded interest?
7000*1.456933

$7,000

at the end of

periods at

8%
($10,285.30)

(b) What is the present value of

discounted at
11%
Text as appropriate.

$7,000

due

(c) What is the future value of

15
the end of each period and compounded at
Text as appropriate.

periodic payments of
10%
?

(d) What is the present value of

20
periods, discounted at
Text as appropriate.

$7,000
5%

periods hence,
($3,037.49)

$7,000

each made at
($222,407.37)

to be received at the end of each of

compound interest?
($87,235.47)

Note: Students using the tables or other sources of present and future values may have values slightly
different due to rounding.

327448358.xlsx, Exercise 6-3, Page 4 of 6, 08/21/2016, 23:12:31

Name:
Date:
11/07/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P6-2 (Various Time Value Situations) Using the appropriate interest table or Excel formula, provide the solution to
each of the following four questions by computing the unknowns.
(a) What is the amount of the payments that Ned Winslow must make at the end of each of
8
years to accumulate a fund of
$90,000
by the end of the eighth year, if the fund earns
8%
interest, compounded annually?
90000/FV of OA= 90000/10.63663

$8,461

(b) Robert Hitchcock is

40
years old today and he wishes to accumulate
$500,000
by his
65
th birthday so he can retire to his summer place on Lake Hopatcong. He wishes to
accumulate this amount by making equal deposits on his fortieth through sixty-fourth birthdays. What annual
deposit must Robert make if the fund will earn
12%
interest compounded annually?
500000/FV of OA of 1=133.33387
(c) Diane Ross has
$20,000
to invest today at
How many years will it take her to accumulate enough to liquidate the debt?

$3,750
9%

to pay a debt of

47347/20000=2.36735 on future value of 1 chart= 10 years

(d) Cindy Houston has a
$27,600
debt that she wishes to repay in
today; she has
$19,553
that she intends to invest for the
4
will she need to earn annually in order to accumulate enough to pay the debt?

$47,347

10 years
4
years from
years. What rate of interest

27600/19553=1.4115481 on future value of 1 chart for 4 years=9%

9%

327448358.xlsx, Problem P6-2, Page 5 of 6, 08/21/2016, 23:12:31

Name:
Date:
11/07/15
Instructor:
Course:
AC3050
th
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield

P6-4 (Evaluating Payment Alternatives) Howie Long has just learned he has won a
$500,000
prize in the lottery. The lottery has given him two options for receiving payments: (1) If Howie takes all
46%
the money today, the state and the federal governments will deduct taxes at a rate of
immediately. (2) Alternatively, the lottery offers Howie a payout of
20
equal payments
of
$36,000
with the first payment occurring when Howie turns in the winning ticket.
Howie will be taxed on each of these payments at a rate of
25%
Instructions:
rate of return (compounded annually) on any money
Assuming Howie can earn an
8%
invested
during this period, which pay-out option should he choose?
Step 1: Determine of single payment cash yield:
Step 2: Determine the present value of an annuity.
Cash payment is:
Tax burden is:
Annual cash yield is:

$270,000

$36,000
25%
$27,000

The present value of an annuity of $27,000 for 20 periods at 8% interest is:

$286,297

Howie should take the annuity payments of $27,000. Its present value is $16,297 greater.

Note: Due to significant digits of formulas, calculators, and tables, minor value differences may occur.

327448358.xlsx, Problem P6-4, Page 6 of 6, 08/21/2016, 23:12:31