Accounting for Income Taxes Kieso

							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
multiple pages.

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
Name:
Exercise:         E19-3, One Temporary Difference, Future Taxable
                         Amounts, One Rate, Beginning Deferred
                         Taxes
Course:
Date:
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

Instructions:
(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
                  Current                                          Formula
                  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