Instructions for the Microsoft Excel Templates
Be advised, the worksheet and workbooks are not protected.
Extensive detail and information is contained within the manual.
Striking the "F1" key or following the path "Windows>Excel Help" will invoke the Office Assistant and bring up one
of several help menus.
You should enter your name, course ID, and date name into the cells at the top of the page.
Each page contains a page footer with a Page # of Page ## as well as time and date to assist in assembly of
Each worksheet contains the identification of the problem or exercise.
All formatting should have been accomplished to provide satisfactory presentation. See the text for additional
assistance in formatting.
There should be no need to insert columns or rows into the workbooks.
If more than one page is required by the problem, the page breaks are preset.
In general, the yellow highlighted cells are the cells which work and effort should be presented.
Place the proper account title in the cell where the word "Account title" appears on the template.
Place the value in the cell where the word "Value" or "Amount" appears on the template. A formula may be placed
in some of these cells.
Write a formula into cells where the word "Formula" appears. In these cells, an amount calculated can be
entered. An amount can be placed in these cells.
Place the explanation for the entry in the cell where the word "Text Explanation" appears on the template.
Insert the account number where "Acct Nbr" appears on the template during posting.
Insert the journal reference where "JOURN #" appears on the template during posting.
Insert the title in the cell where "TITLE" appears on the template.
The print area is defined to fit onto 8 1/2" X 11" sheets in portrait or landscape mode as required.
The gray filled cells define the perimeter of the problem and the print area.
The problem is formatted for whole dollars with comma separations (no cents) except where required.
The display may have "Freeze Pane" invoked so column titles remain visible during data entry.
Negative values may be shown as ($400) or -$400.
Instructions, Page 1 of 4, 12/3/2010, 8:42 PM
Consider using "Split" panes to assist in copy and paste of data.
Much of the exercises and problems can have data entered by the "look to" or "=A34" type formula where cell
A34 contains the data to be entered. This precludes typing and data entry errors.
Instructions, Page 2 of 4, 12/3/2010, 8:42 PM
Exercise: E19-3, One Temporary Difference, Future Taxable
Amounts, One Rate, Beginning Deferred
Brennan Corporation began 2010 with a $90,000 balance in the Deferred Tax Liability account.
At the end of 2010, the related cumulative temporary difference amounts to $350,000
and it will reverse evenly over the next 2 years. Pretax accounting income for 2010 is $525,000
the tax rate for all years is 40% and taxable income for 2010 is $400,000
(a) Compute income taxes payable for 2010.
Taxable income for 2010 Amount
Enacted tax rate Percentage
Income tax payable for 2010 Formula
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes
payable for 2010.
Future Years 2011 2012 Total
Future taxable (deductible) amounts Amount Amount Formula
Tax Rate Percentage Percentage
Deferred tax liability (asset) Formula Formula Formula
Deferred tax liability at the end of 2010 Amount
Deferred tax liability at the beginning of 2010 Amount
Deferred tax expense for 2010 (increase required in
deferred tax liability) Formula
Current tax expense for 2010 Formula
Income tax expense for 2010 Formula
Account Title Amount
Account Title Amount
Account Title Amount
(c) Prepare the income tax expense section of the income statement for 2010 beginning with the line
"Income before income taxes."
Income before income taxes Amount
Income tax expense
Deferred Formula Formula
Net income Formula
Note to instructor - Student input not required.
Exercise 19-3, Page 3 of 4, 12/3/2010, 8:42 PM
Pretax financial income Amount
Temporary difference originating giving
rise to net future taxable amounts Amount
Taxable income Formula
Exercise 19-3, Page 4 of 4, 12/3/2010, 8:42 PM