Accounting Spreadsheet Activity

REQUIRED

a. Download the spreadsheet for problem 14.7 from the website for this textbook:

b. Create formulas to calculate the following:

o Accumulated depreciation (all assets use the straight-line method; all assets acquired any time during the year get a full years initial depreciation)

o Current years depreciation (straight-line method, full amount for initial year in which asset acquired)

o Ending accumulated depreciation

o Net book value at end of period

o Current year in the cell to the right of the phrase Depreciation schedule for year

o Column totals for acquisition cost, beginning depreciation, current depreciation, ending accumulated depreciation, net book value

o In the cell to the right of the arrow following the text Cross-footing test, create a formula that checks whether the sum of the net book value column equals the sum of acquisition costs minus the sum of ending accumulated depreciation. If the two values match, the formula should display the text Okay; otherwise, it should display the text Error.

c. Create a table at the bottom of your worksheet that consists of two columns: (1) asset name (values should be chair, desk, laptop, monitor, software, and workstation); and (2) net book value (create a formula to calculate this number), assuming that the current date is 06/30/2014. Then:

o Create a formula that sums the total net book values for all classes of assets.

o In the cell to the right of the total net book values for all asset classes, create a formula that compares the total net book values for all classes of assets to the sum of all net book values in the top portion of the spreadsheet. The formula should return Okay if the two totals match or Error: Sum of net book values by asset class does not equal sum of all net book values if the two totals do not equal one another.

d. Enter your name in row 1 in the cell to the right of the text Name.

Please use the attached Excel spreadsheet to complete Problem 14-7.

P 14-7 My name Depreciation Schedule for year Account Number 11001 11100 11200 11050 11500 11500 11500 11300 11300 11300 11001 11001 11050 Placed Estimated Description Date in Service Useful Life Desk Laptop Workstation Chair Software Software Software Monitor Monitor Monitor Desk Desk Chair 4/5/2008 5/2/2009 3/25/2008 2/1/2005 7/1/2010 6/30/2009 1/31/2007 2/20/2009 9/30/2005 10/15/2008 4/4/2009 8/8/2005 6/30/2010 Book Asset Name Net Value Desk Laptop Workstation Chair Software Monitor Total $0 $0 $0 $0 $0 $0 5 5 5 5 3 3 3 4 4 4 5 5 5 Acquisition Cost Salvage Value $500 $2,400 $1,900 $750 $750 $2,100 $900 $800 $1,200 $600 $1,000 $1,500 $1,250 $100 $400 $250 $50 $0 $0 $0 $100 $100 $100 $150 $250 $125 Totals $15,650 Cross-footing test -----> $1,625 Beginning Accumulated Depreciation $0 Ending Current Period Accumulated Net Book Depreciation Depreciation Value $0 $0 $0