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

Overtyping any data may remove it.

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

You should enter your name, date, instructor's name, and course into the cells at the top of the page. This information will be printed
on the top of each page if the template requires more than one page.

Each template is set to print with File Name, Page # of # Page(s), the print date, and the print time to assist in assembly
of multiple pages.

If more than one page is required by the template, manual page breaks have been set to provide consistent
presentation.

All of the cells have been correctly formatted for presentation and should not require any adjustment. For example, if the
text requires one, two, or three significant digits in a presentation, the template has been set for that presentation in the
appropriate cells.

In general, the highlighted cells are the cells which work and effort should be presented. These entries may include date(s), account
title(s), values, memorandum appropriate to the entry, or text answers to questions.

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

Where a highlighted cell shows "Date" enter the appropriate date for that step of the challenge. This may be any date format that
Microsoft Excel accepts. Some of these formats include "1/1/12", "01/01/12", and "01/01/2012." All of these will return January 01,
2012, in the format set in the template.

Where a highlighted cell shows "Acct Nbr" enter the appropriate account number, provided in the template and in the text for that step
of the challenge. This is entry may be a "Look to" formula to another cell where that information has been provided or previously
entered.

Where a highlighted cell shows "Account Title" enter the appropriate account title for that step of the challenge. This is a text entry
and most of those cells are set for the proper indentation for that step. Frequently the chart of accounts appropriate to the challenge is
provided and you can use the "look to" formula to reference the appropriate account title without typing it.

Check with your instructor to see if abbreviated account titles are acceptable. For example "A/R" for Accounts Receivable, "A/P" for
Accounts Payable. If your instructor is using a comparison process between workbooks for grading, these abbreviates may not be
acceptable.

Where a highlighted cell shows titles such as "Values," "Amounts," or "Quantities" enter the appropriate numerical value for that step
of the challenge. The cell is formatted for proper presentation of the entered information. If a dollar sign is appropriate, it should not
be entered, Microsoft Excel will place it there through formatting. Commas and significant digits (decimals) are also set through
formatting for common presentation. Since the formatting of the templates is not protected by any password, you may change any of
the formatting found in the templates to meet your desires.

Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate
for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with
borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference,
"=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial
text provided for Microsoft Excel.
Where a highlighted cell shows titles such as "Formula" you may enter the appropriate formula or enter a numerical value appropriate
for that step of the challenge. Most of the values necessary for the appropriate formula are located on the template in cells with
borders or in other yellow highlighted cells. The formula may be a simple "Look to" formula, an equal sign and a cell reference,
"=E27" or more complex as "=E27*5," or something similar to the time-value-of-money formula. These are addressed in the tutorial
text provided for Microsoft Excel.

Where a highlighted cell shows "Text" enter the appropriate text for that step of the challenge. This may be a memorandum entry for a
journal entry or a lengthy text answer discussing the results of an analysis of a company's financials. These titles can simply be typed
over.

Where a highlighted cell shows titles such as "Journal Number" or "Journ #" you should enter the appropriate number provided in the
template and in the text for that step of the challenge. In general this will appear in instances such as "Record the following events in
General Journal number six."

The print area is defined to fit onto 8 1/2" × 11" sheets in portrait or landscape mode as required. Margins are generally set to no less
than 1/2" so most printers can print them without a problem. If you printer cannot accept margins less than 1" you may have to
reformat the margins through Page Setup.

The display may have "Freeze Pane" invoked so column titles remain visible during data entry. This can be removed by utilizing the
View menu and selecting "Unfreeze Panes" under "Freeze Panes."

When negative values are required, enter them by starting with a minus sign, "-". Negative values may be shown as ($400) or -$400.
Negative values in formulas can be created by putting a minus sign in front of the cell reference - "=E10*-E11" will return a negative
value if both cells E10 and E11 contain positive values.
Name: Vanita Barry Date:
Instructor: Course:
Intermediate Accounting, 15 Edition by Kieso, Weygandt, and Warfield
th

E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari Kawabata
Company at December 31, 2014.

Finished Goods $52,000 Cost of Goods Sold $2,100,000

Unearned Revenue 90,000 Notes Receivable 40,000
Equipment 253,000 Accounts Receivable 161,000
Work in Process 34,000 Raw Materials 207,000
Cash 37,000 Supplies Expense 60,000
Equity Investments (Short-term) 31,000 Allowance for Doubtful Accounts 12,000
Customer Advances 36,000 Licenses 18,000
Cash Restricted for Plant Expansion 50,000 Additional Paid-in Capital 88,000
Treasury Stock 22,000

The following additional information is available:

1. Inventories are valued at lower-of-cost-or-market using LIFO.
2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600
3. The short-term investments have a fair value of $29,000 (Assume they are trading securities.)
4. The notes receivables are due April 30, 2016, with interest receivable every April 30. The notes bear
interest at 6% (Hint: Accrue interest due on December 31, 2014.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of
$50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000
7. Treasury stock is recorded at cost.

Instructions:
Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with
appropriate disclosures.

Current assets
Cash $87,000
Less: Cash Restricted for Plant Expansion (50,000) $37,000
Equity Investments (Short-term) 29,000
Accounts receivable (of which $50,000 is pledged as collateral on a
bank loan) 161,000
Less: Allowance for Doubtful Accounts (12,000) 149,000
Interest receivable [($40,000 × 6.00%) × 8/12] 1,600
Inventories at lower-of-cost-(determined using LIFO)-or-market
Finished Goods 52,000
Work in Process 34,000
Raw Materials 207,000 293,000
Total current assets $509,600

506937924.xlsx, Exercise 5-7 , Page 3 of 10, 01/23/2021, 04:29:33

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

E5-11 (Balance Sheet Presentation) Presented below is the adjusted trial balance of Kelly Corporation
at December 31, 2014.
Debits Credits
Cash ??
Supplies $1,200
Prepaid Insurance 1,000
Equipment 48,000
Accumulated Depreciation - Equipment $4,000
Trademarks 950
Accounts Payable 10,000
Salaries and Wages Payable 500
Unearned Service Revenue 2,000
Bonds Payable, due 2021 9,000
Common Stock 10,000
Retained Earnings 25,000
Service Revenue 10,000
Salaries and Wages Expense 9,000
Insurance Expense 1,400
Rent Expense 1,200
Interest Expense 900
Total ?? ??

Additional information:
1. Net loss for the year was $2,500
2. No dividends were declared during 2014.

Instructions:
Prepare a classified balance sheet as of December 31, 2014.
Solution to cash: Total liabilities and shareholders' equity = $54,000 less known assets of Supplies $1,200
+ Prepaid Insurance of $1,000 + Equipment of $48,000 + Trademarks of $950 plus Accumulated
Depreciation - Equipment of $4,000

KELLY CORPORATION
Balance Sheet
December 31, 2014
Assets
Current assets
Cash $6,850
Supplies 1,200
Prepaid Insurance 1,000
Total current assets $9,050
Equipment
Accumulated Depreciation - 48,000
Equipment 4,000 44,000
Intangible assets - Trademarks 950
Total assets $54,000

506937924.xlsx, Exercise 5-11 , Page 4 of 10, 01/23/2021, 04:29:33

Name: Date:
Instructor: Course:
Liabilities and Shareholders’ Equity
Current liabilities
Accounts Payable $10,000
Salaries and Wages Payable 500
Unearned Service Revenue 2,000
Total current liabilities $12,500
Bonds Payable, due 2021 9,000
Total liabilities 21,500

Shareholders’ equity
Common Stock 10,000
Retained Earnings 22,500
Total shareholders’ equity 32,500
Total liabilities and shareholders’ equity $54,000

Computation of retained earnings:

Retained Earnings - Beginning balance $25,000
Net loss (2,500)
Retained Earnings - Ending balance $22,500

or:

Service Revenue $10,000

Less: Salaries and Wages Expense $9,000
Less: Insurance Expense 1,400
Less: Rent Expense 1,200
Less: Interest Expense 900 12,500
Period Net income / (Net loss) (2,500)
Retained Earnings - Beginning balance 25,000
Retained Earnings - Ending balance $22,500

506937924.xlsx, Exercise 5-11 , Page 5 of 10, 01/23/2021, 04:29:33

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

P5-2 (Balance Sheet Presentation) Presented below are a number of balance sheet items for Montoya, Inc., for the
current year, 2014.

Goodwill $125,000 Accumulated Depreciation - Equipment $292,000

Payroll Taxes Payable 177,591 Inventory 239,800
Bonds Payable 300,000 Rent Payable - Short-term 45,000
Discount on Bonds Payable 15,000 Income Tax Payable 98,362
Cash 360,000 Rental Payable Long-term 480,000
Land 480,000 Common Stock, $1 Par Value 200,000
Notes Receivable 445,700 Preferred Stock, $10 Par Value 150,000
Notes Payable to Banks 265,000 Prepaid Expenses 87,920
Accounts Payable 490,000 Equipment 1,470,000
Retained Earnings ? Equity Investments (Trading) 121,000
Income Taxes Receivable 97,630 Accumulated Depreciation - Buildings 270,200
Unsecured Notes Payable (Long-term) 1,600,000 Buildings 1,640,000

Instructions:
Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares,
and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes
payable are short-term, unless stated otherwise. Cost and fair value of marketable securities are the same.

MONTOYA, INC.
Balance Sheet
December 31, 2014
Assets
Current assets
Cash $360,000
Equity Investments (Trading) 121,000
Notes Receivable 445,700
Income Taxes Receivable 97,630
Inventory 239,800
Prepaid Expenses 87,920
Total current assets $1,352,050

Property, plant, and equipment

Land 480,000
Buildings $1,640,000
Less: Accum Deprec - Buildings 270,200 1,369,800
Equipment 1,470,000
Less: Accum Deprec - Equipment 292,000 1,178,000
3,027,800
Intangible assets
Goodwill 125,000
Total assets $4,504,850

506937924.xlsx, Problem 5-2, Page 6 of 10, 01/23/2021, 04:29:33

Name: Date:
Instructor: Course:
Liabilities and Shareholders’ Equity
Current liabilities
Accounts Payable $490,000
Notes Payable to Banks 265,000
Payroll Taxes Payable 177,591
Income Tax Payable 98,362
Rent Payable - Short-term 45,000
Total current liabilities $1,075,953

Long-term liabilities
Unsecured Notes Payable (Long-term) 1,600,000
Bonds Payable $300,000
Less: Discount on Bonds Payable 15,000 285,000
Rental Payable Long-term 480,000 2,365,000
Total liabilities 3,440,953

Shareholders’ equity
Capital Stock
Preferred stock, $10 par; 20,000
shares authorized, 15,000 shares 150,000
issued
Common stock, $1 par; 400,000
shares authorized, 200,000 issued 200,000 350,000
Retained Earnings ($1,063,897 - $350,000) 713,897
Total shareholders’ equity ($4,504,850 – $3,440,953) 1,063,897
Total liabilities and shareholders’ equity $4,504,850

Computation of Retained earnings:

Accounting Equation
Total assets $4,504,850
Less: Liabilities 3,440,953
Less: Contributed capital 350,000
Retained earnings $713,897

506937924.xlsx, Problem 5-2, Page 7 of 10, 01/23/2021, 04:29:33

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

P5-6 (Preparation of a Statement of Cash Flows and a Balance Sheet) Lansbury Inc. had the balance sheet
shown on the following page at December 31, 2013.

LANSBURY INC.
Balance Sheet
December 31, 2013
Cash $20,000 Accounts Payable $30,000
Accounts Receivable 21,200 Notes Payable (Long-term) 41,000
Investments 32,000 Common Stock 100,000
Plant Assets (Net) 81,000 Retained Earnings 23,200
Land 40,000
$194,200 $194,200

During 2014the following occurred:

1. Lansbury Inc. sold part of its investment portfolio for $15,000 This transaction
resulted in a gain of $3,400 for the firm. The company classifies its investments as available-for-
sale.
2. A tract of land was purchased for $18,000 cash.
3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying
$16,000 cash.
4. An additional $20,000 in common stock was issued at par.
5. Dividends totaling $8,200 were declared and paid to stockholders.
6. Net income for 2014 was $32,000 after allowing for depreciation of $11,000
7. Land was purchased through the issuance of $30,000 in bonds.
8. At December 31, 2014, Cash was $32,000 Accounts Receivable was $41,600
and Accounts Payable remained at $30,000

Instructions:
(a) Prepare a statement of cash flows for 2014.

LANSBURY INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income $32,000
Adjustments to reconcile net income to
net cash provided by operating
activities
Depreciation Expense $11,000
Gain on sale of investments (3,400)
Increase in account receivable
($41,600 – $21,200) (20,400) (12,800)
Net cash provided by operating activities 19,200

Cash flows from investing activities

Sale of investments 15,000
Purchase of land (18,000)
Net cash used in investing (3,000)

506937924.xlsx, Problem 5-6, Page 8 of 10, 01/23/2021, 04:29:33

Name: Date:
Instructor: Course:
Cash flows from financing activities
Issuance of common stock 20,000
Retirement of notes payable (16,000)
Payment of cash dividends (8,200)
Net cash used by financing activities (4,200)

Net increase in cash 12,000

Cash at beginning of year 20,000
Cash at end of year $32,000

Noncash investing and financing activities

Land purchased through issuance of $30,000 of bonds

(b) Prepare an unclassified balance sheet as it would appear at December 31, 2014.

LANSBURY INC.
Balance Sheet
December 31, 2014
Assets Liabilities and Shareholders’ Equity
Cash $32,000 Accounts Payable $30,000
Accounts Receivable 41,600 Notes Payable (Long-term) 25,000 (4)
Investments 20,400 (1) Bonds Payable 30,000 (5)
Plant Assets (Net) 70,000 (2) Common Stock 120,000 (6)
Land 88,000 (3) Retained Earnings 47,000 (7)
Total assets $252,000 Total Liabilities and SHE $252,000

(1) Investments - $32,000 - ($15,000 - $3,400 = $20,400

(2) Plant assets - $81,000 - $11,000 = $70,000
(3) Land - $40,000 + ($18,000 + $30,000 = $88,000
(4) Notes payable - Long-term - $41,000 - ($16,000 = $25,000
(5) Bonds payable - $0 + $30,000 = $30,000
(6) Common stock - $100,000+ $20,000 = $120,000
(7) Retained earnings - $23,200 + ($32,000 - $8,200 = $47,000

(c) How might the statement of cash flows help the user of the financial statements? Compute two cash
flow ratios.

Cash flow information is useful for assessing the amount, timing, and uncertainty of future cash flows. For example,
by showing the specific inflows and outflows from operating activities, investing activities, and financing activities, the
user has a better understanding of the liquidity and financial flexibility of the enterprise. Similarly, these reports are
useful in providing feedback about the flow of enterprise resources. This information should help users make more
accurate predictions of future cash flow. In addition, some individuals have expressed concern about the quality of
the earnings because the measurement of the income depends on a number of accruals and estimates which may
be somewhat subjective. As a result, the higher the ratio of cash provided by operating activities to net income, the
more comfort some users have in the reliability of the earnings. In this problem the ratio of cash provided by
operating activities to net income is 60% ($19,200 ÷ $32,000).

506937924.xlsx, Problem 5-6, Page 9 of 10, 01/23/2021, 04:29:33

Name: Date:
Instructor: Course:
An analysis of Lansbury’s free cash flow indicates it is negative as shown below:

Free Cash Flow Analysis

Net cash provided by operating activities $19,200
Less: Purchase of land ($18,000)
Dividends ($8,200)
Free cash flow ($7,000)

Its current cash debt coverage ratio is 0.64 to 1 ($19,200 / $30,000).

Cash debt coverage ratio is 0.25 to 1 {$19,200 / [($71,000 + $85,000) / 2]}, which is reasonable.

Overall, it appears that its liquidity position is average and overall financial flexibility and solvency should be improved.

506937924.xlsx, Problem 5-6, Page 10 of 10, 01/23/2021, 04:29:33