Accounting 11
Exercise 3-4
1. Create the following Transaction Analysis spreadsheet in Excel and save it as exercise 3-4.
ANTONELLI’S ACCOUNTING SERVICES
ASSETS
LIABILITIES
Cash
Balances:
T1
T2
T3
T4
T5
T6
T7
T8
T9
New Balances:
Summary:
A =
L =
OE =
$455
A/R
Jones
Bros.
$50
Equipment
$150
A/P
Star
Supply
$ 125
Bank
Loan
OWNER’S EQUITY
A. Antonelli,
Zero
Capital
Proof
$ 530
A
=
L + OE =
a. Use the sum function to calculate the new balances in row 15: the total of the items in each
column = ex. (=sum (B5:B14).
b. Use the sum function to calculate the total assets (for example, = sum(B15:D15)
c. Enter a formula to calculate the total liabilities : (for example, =E15+F15)
d. Use a formula to Calculate the OE- Owner’s Equity (for example, = A17-A18)
e. In cell E17 use a cell reference to copy over the Assets Total (=B17)
f. In cell E18, use a formula to calculate the Liabilities and Equity Total ( =B18 + B19)
g. To check your work for accuracy, enter the following formula in the Zero Proof Column:
a. = sum(B5: D5 – sum(E5: G5))
b. This formula instructs the spreadsheet to add up the assets and then subtract the
liabilities and equity.
c. This will ensure that you do not enter a transaction that will cause the accounting
equation to be out of balance.
d. The value in the zero proof column should always be 0.
h. Use the fill handle to copy over your formulas as necessary.
2. Complete the equation analysis sheet by recording the transactions below as changes to assets,
liabilities and owner’s equity. You must always make 2 entries in this type of equation analysis
sheet. If there is a change in equity, record the transaction in the equity column. You zero proof
column should always be 0, otherwise you have made an error.
a. The business borrows $3000 from the bank
b. The business buys computer equipment for $2500 cash. (don’t forget to enter this as 2500 cash). You can edit the way negative numbers appear by choosing format/cells and
then clicking on the Number tab
c. The business collects $50 from Jones Bros. in payment of their debts
d. Purchased office equipment from Star Supply for $225. The bill is to be paid in 30 days.
e. Sold accounting services to Jones Bros. for $500. The amount is to be received at a later
date.
f. Returned $80 of defective equipment to Star Supply. That company agreed to reduce the
amount owed to them by $80.
g. Anna Antonelli withdrew $300 from the business for personal use.
h. Paid $600 to reduce the bank loan.
i. Sold more accounting services to Jones Bros. The total was $700, with $200 received
now and the balance to be received in 30 days.
3. After all the transactions are entered; check the zero-proof column for any cells that do not have
a zero balance. Fix any errors you find.
4. Check the summary section of the spreadsheet for errors; the accounting equation should be in
balance.
5. Insert a new worksheet into your Excel document, and make a Balance sheet for Antonelli’s
Accounting services, as of the last transaction.
a. use cell references to copy over the assets, liabilities and owner’s equity from sheet 1. In
order to reference cells on a different worksheet, use a cell reference like the following:
=Sheet1!B5