Excel Accounting Practice Problems – 8 Exercises

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Problem Overview

There will be eight exercises related to Excel accounting practice problems. Each problem has a distinct dataset. The “Problem” sheet shows the exercises, and the “Solution” sheet the solved problems. The following image showcases the first problem.

• Exercise 1 – Formatting: Twenty one cash transactions are given in this first exercise. Your task is to change the formatting of the expenses to red and find the total value, double underlining it.
• Exercise 2 – Transaction Analysis: Ten transactions are given. You will use them to create a summary (distribute them into  Assets, Liability and Owner’s Equity account) and solve the accounting equation.
  • The Owner invests $13,000 cash on a business.
  • Purchases equipment: $5,000 cash.
  • Buys supplies: $1,400 credit.
  • Service provided: $1,000 cash.
  • Purchase of marketing advertisement: $200 credit.
  • Service provided: $1,200 cash and $1,800 credit.
  • Cash payment of office rent: $500, salaries and wages $800, utilities bill $100.
  • Payment of accounts payable for the  marketing advertisement: $200
  • From the sixth transaction, the owner received $400.
  • Owner’s withdrawal:$1,100.
• Exercise 3 – Complete Financial Statements: Information is provided for four financial statements. Calculate the missing information.
  • The following GIF shows a partial solution to this exercise.

• Exercise 4 – Examine the Impact of the Transactions: There are seventeen statements. Your task is to determine if those increase or decrease the three accounts (assets, liabilities, and owner’s equity).
• Exercise 5 – Prepare Financial Statements from Transactions: Ross Geller opens his own firm on December 1,2022. During the first month of the operation, the following transactions took place.
  • Ross invested $13,000 cash on the firm.
  • Paid $1,000 for the office’s December rent.
  • $5,000 worth of equipment was purchased with credit.
  • Performed services for a customer:  cash $1,700.
  • On a note payable, borrowed $900 from a bank.
  • Performed a second service for a fee of $4,000 on account.
  • Paid the following monthly expenses: $700 for salaries and wages, $500 for utilities, and $300 for advertising.
  • For personal use, Ross withdrew $3,000 from the account.
  • Create an income statement, an owner’s equity statement, and  a balance sheet.
• Exercise 6 – Debit Credit Rules & Use of Data Validation: There is a list of ten accounts. You will return whether it will be Debit or Credit when those accounts increase. Use data validation and a conditional formula in the Decrease column to return the opposite.
• Exercise 7 – Create a Journal and a Ledger: Your goal is to create a journal and a ledger using the following transaction data for a shop:
  • December 1 – Owner invested $10,000 on the business. The owner purchased office equipment: $5,000 for a 3-month, 13%, $5,000 payable note.
  • December 2 – Receives $1,200 cash in advance for a service that is expected to be completed within the month.
  • December 3 – Paid rent expense: $900 cash.
  • December 20 – The owner withdraws $4,000 for personal use.
• Exercise 8 – Prepare Income Statement from a Trial Balance: An adjusted trial balance is given. Your task is to create an income statement using those values.

The following image shows the solution to the first problem.

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