Electronic Arts is the world’s leading developer and publisher of interactive entertainment software for personal computers and advanced entertainment systems made by Sony, Nintendo, and Microsoft. 

Assume that the company is revising its methods for displaying its financial statements, and the controller in the accounting department has asked you to create electronic worksheets that the department can use as its standard format for financial statement reporting. The controller has provided you with an alphabetical list of statement categories and account names (below), with corresponding balances (in millions) as of September 30. She has asked you to use a spreadsheet program to create two worksheets that organize the accounts into a properly formatted balance sheet and income statement, and that use formulas to compute the amounts represented by question marks below. 

Not knowing where to start, you emailed your friend Owen for advice on using a spreadsheet. Owen’s detailed reply follows. 

Hey, pal. Long time, no chat. Here’s the scoop on creating those worksheets, with a screenshot too. If you need more help, let me know and I’ll submit an application for your position there. 

1. Start up Excel to open a new spreadsheet file. You’ll need only two worksheets for this assignment, so delete the third worksheet by right-clicking on the Sheet3 tab at the bottom of the worksheet and selecting Delete. While you’re at it, rename Sheet1 and Sheet2 to Balance Sheet and Income Statement by double-clicking on the worksheet tabs and typing in the new names. 

2. Plan the layout for your reports. Use the first column as a blank margin, the second column for account names and their headings, and the third column for the numbers corresponding to each account name or total. If you want to apply the same format to all worksheets, begin by right-clicking on the tab at the bottom of a worksheet and choosing Select All Sheets. Next, resize the first column by clicking on the A at the top of that column, then from the Home tab, in the Cells group, click on Format then Column Width . . . , and enter a width of 2. Using this same procedure, resize columns B and C to 50 and 15, respectively. 

3. Starting with cell B1, enter the company’s name. Enter the report name and date in cells B2 and B3. To merge cells so these headings span more than one column, select the cells to be merged and then click on Format in the Cells group, select Format Cells . . . and click the Merge Cells box in the Text Control section of the Alignment tab. Continue with the body of the report in cell B5, entering any necessary amounts in column C. 

4. To use formulas to compute subtotals and totals, the equals sign = is entered first into the cell and is followed immediately by the formula. So, to add a series of amounts, say C7 through C11, use a formula like = SUM(C7:C11), as shown in the screenshot below. 

5. After you enter all the data and calculate totals, be sure to save the file. To do this, just click on the Office button in the top left and choose Save As . . . . 

6. If you need to print the worksheets, it might be best to highlight what you want printed, then click on the Office button, choose Print. . . , and choose Selection in the Print What box. 

7. Go to it, you accounting guru! 

Required: 

Follow Owen’s advice to create a balance sheet and income statement, with each statement saved on a separate worksheet in a file called meEA.xls where the me part of the file name uniquely identifies you.

Transcribed Image Text:

Accounts Payable Accounts Receivable Assets Cash Contributed Capital Cost of Goods Sold Expense Expenses Income Tax Expense Inventories $ 171 Liabilities 328 Net Income Notes Payable 2,412 Other Assets 986 Other Expenses 284 Other Liabilities Promotion Expense 9 Property and Equipment 367 Retained Earnings Revenue ? Sales Revenue $12 Selling Expense 283 Shareholders' Equity 1 Total Assets 587 Total Expenses 107 Total Liabilities 364 Total Liabilities and Shareholders' Equity 1,998 Total Shareholders' Equity $675 223 Mimi ni m ? ? ? ? ?