Excel Accounting Practice Problems

Exercise 01 Use of Formatting:

# Date
1 30-Nov-22
2 30-Nov-22
3 01-Dec-22
4 02-Dec-22
5 03-Dec-22
6 03-Dec-22
7 04-Dec-22
8 04-Dec-22
9 05-Dec-22
10 06-Dec-22
11 06-Dec-22
12 07-Dec-22
13 08-Dec-22
14 09-Dec-22
15 10-Dec-22
16 10-Dec-22
17 10-Dec-22
18 11-Dec-22
19 12-Dec-22
20 12-Dec-22
21 13-Dec-22
Balance

Exercise 02 Transaction Analysis:

# Assets
1

3
 4
5

10
Total

Exercise 03 Complete Financial Statements:

Income Statement
Revenues
Service Revenues
Expenses
Salaries and Wages Expense
Rent Expense
Advertisement Expense
Utilities Expense
Total Expense
Net Income

Owner's Equity Statement

Beginning Owner's Capital
Add: Investments
Net Income
Less: Drawings
Ending Owner's Equity Capital

Balance Sheet
Assets
Cash
Accounts Receivables
Supplies
Equipment
Total Assets
Liabilities and Owner's Equity
Liabilities
Accounts Payable
Owner's Equity
Owner's Capital
Total Liabilities and Owner's Equity

Cash Flow Statement

Cash Flow from Operating Activities
Cash Receipts from Revenues
Cash Payments for Expenses
Net Cash Flow from Operating Activities
Cash Flow from Investing Activities
Purchase of Equipment
Cash Flow from Financing Activities
Investment by Owner
Drawings by Owner
Net Increase in Cash
Cash at the Beginning of the Period
Cash at the End of the Period

Exercise 04 Examine the Impact of the Transactions:

# Statement
1 Cash investment to start a business.
2 Bought equipment on credit.
 3 Paid salaries and wages.
4 Billed customers for provided services.
5 Received cash from customers for transaction #4.
6 Withdrawal of cash for owner's personal use.
7 Advertising expense on credit.
8 Bought additional equipment on cash.
9 Received cash from customers for service.
10 Purchased laptop on account.
11 Paid cash for rent expense.
12 Received cash for service, billed last month.
13 Performed payroll services for cash.
14 Paid cash a company for their services.
15 Additional investment on the business.
16 Payment for the laptop purchased in transaction #10.
17 Incurred advertisement expense on account.
18 Bought Air Conditioner on credit.
19 Payment for the air conditioner

Exercise 05 Prepare Financial Statements from Transactions:

Ross's Company
Income Statement
For the Month Ended December 31,2022

Ross's Company
Owner's Equity Statement
 For the Month Ended December 31,2022

Ross's Company
Balance Sheet
December 31,2022

Exercise 06 Debit Credit Rules & Use of Data Validation:

Assets = Liabilities + Owner's Equity
Particulars Increase
Assets
Liabilities
Owner's Capital
Owner's Drawings
Revenues
Expenses
Income
 Cost
Dividend
Equity

Exercise 07 Create a Journal and a Ledger:

Journal J1
Date Account Title and Explanation

Ledger
Date Explanation
Exercise 08 Prepare Income Statement from a Trial Balance:
Account Title Debit
Cash $ 16,200
Supplies $ 1,300
Prepaid Insurance $ 550
Equipment $ 5,300
Notes Payable
Accounts Payable
Unearned Service Revenue
Owner's Capital
Owner's Withdrawal $ 700
Service Revenue
Salaries Expense $ 6,400
Rent Expense $ 750
Supplies Expense $ 1,650
Insurance Expense $ 50
Accumulated Depreciation - Equipment
Depreciation Expense $ 60
Accounts Receivable $ 220
 Interest Expense $ 120
Interest Payable
Salaries Payable

Income Statement
Particulars Value
tice Problems

Transaction Type Category Amount

Paycheck Salary $ 5,500.00
Profit from Food Business Profit/Loss $ 1,600.00
Health Insurance Insurances $ (250.00)
Exercise 01 Use of Formatting: Twenty one
Fed Tax Taxes $ (450.00) in this first exercise. Your task is to change
State Tax Taxes $ (300.00) expenses to red color. Then, find the total
underline to it.
Car Insurance Insurances $ (200.00) Exercise 02 Transaction Analysis: Ten tran
use those to create a summary of the tran
Rent Rent $ (1,700.00) the Assets, Liability and Owner’s Equity ac
Loss from Travel Business Profit/Loss $ (240.00) accounting equation.
Owner invests $13,000 cash on the busine
Student Loan Loans $ (200.00) Purchases equipment for $5,000 cash.
Car Loan Loans $ (350.00) Buys supplies for $1,400 on credit.
Service provided for $1,000 cash.
Groceries Food $ (700.00) Purchase of marketing advertisement for $
Service provided for $1,200 cash and $1,80
Games Entertainment $ (320.00) Cash payment of office rent $500, salaries
Phone Bill Utilities $ (200.00) $100.
Payment of accounts payable for the $200
Current Bill Utilities $ (300.00) From the sixth transaction, the owner rece
Gym Memberships $ (150.00) Owner’s withdrawal of $1,100.

Spa Personal $ (340.00)

Netflix Memberships $ (50.00)
Movies Entertainment $ (300.00)
Restaurants Dining Out $ (600.00)
Profit from Tool Business Profit/Loss $ 1,200.00
Spotify Entertainment $ (25.00)

Account Liabilities Account Owner's Equity

 A= L+O

Balanced

$ 4,700.00

$ 900.00
$ 600.00
$ 250.00
$ 200.00
$ 1,950.00
$ 2,750.00

$ -
$ 13,000.00

$ 1,100.00
$ 11,900.00

$ 1,400.00
$ 1,600.00
$ 7,000.00
$ 10,000.00

$ 1,600.00
Exercise 03 Complete Financial Statements:
Information is provided for four financial
statements. Your task is to calculate the missing
$ 1,600.00 information.
Exercise 04 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).
$ 3,300.00
$ (1,950.00)
$ 1,350.00

$ (7,000.00)

$ 13,000.00
$ (1,100.00)
$ 6,250.00
$ -
$ 6,250.00

Increase Decrease
Exercise 05 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 happened.
Ross invested $13,000 in cash in the firm.
 Exercise 05 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 happened.
Ross invested $13,000 in cash in the firm.
Paid $1,000 toward the office's December rent.
$5,000 worth of equipment was purchased with credit.
Performed services for a customer for cash of $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.
Now, create an income statement, owner’s equity
statement, and balance sheet from these.
Exercise 06 Debit Credit Rules & Use of Data Validation:
In this exercise, there is a list of ten accounts. You will
return whether it will be Debit or Credit when those
accounts increase. Use the data validation for this.
Moreover, use a conditional formula in the Decrease
column to return the opposite.

Decrease
Ref. Debit Credit

Ref Debit Credit Balance

 Credit Statement
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet Exercise 07 Create a Journal and a Ledger:
using the following transaction data for a sh
$ 5,200 Balance Sheet December 1 - Owner invested $10,000 on th
purchased office equipment of $5,000 for a
$ 2,900 Balance Sheet December 2 - Receives $1,200 cash in advan
$ 1,000 Balance Sheet completed within the month.
December 3 - Paid rent expense of $900 in c
$ 11,000 Balance Sheet December 20 - The owner withdraws $4,00
Balance Sheet Exercise 08 Prepare Income Statement from
given. Your task is to create an income state
$ 11,600 Income Statement
Income Statement
Income Statement
Income Statement
Income Statement
$ 60 Balance Sheet
Income Statement
Balance Sheet
 Income Statement
$ 120 Balance Sheet
$ 1,420 Balance Sheet
Exercise 01 Use of Formatting: Twenty one cash transactions are given
n this first exercise. Your task is to change the formatting of the
expenses to red color. Then, find the total value and give a double
underline to it.
Exercise 02 Transaction Analysis: Ten transactions are given. You will
use those to create a summary of the transaction (distribute them into
he Assets, Liability and Owner’s Equity account). After that, satisfy the
accounting equation.
Owner invests $13,000 cash on the business.
Purchases equipment for $5,000 cash.
Buys supplies for $1,400 on credit.
ervice provided for $1,000 cash.
Purchase of marketing advertisement for $200 on credit.
ervice provided for $1,200 cash and $1,800 on credit.
Cash payment of office rent $500, salaries and wages $800, utilities bill
$100.
Payment of accounts payable for the $200 marketing advertisement.
rom the sixth transaction, the owner received $400.
Owner’s withdrawal of $1,100.

Account
al Statements:
ur financial
ulate the missing
ct of the
teen statements.
ose increase or
assets, liabilities, and
cial Statements from
opens his own firm on
the first month of the operation,
happened.
ash in the firm.
 cial Statements from
opens his own firm on
the first month of the operation,
happened.
ash in the firm.
ffice's December rent.
t was purchased with credit.
ustomer for cash of $1,700.
ed $900 from a bank.
e for a fee of $4,000 on
expenses: $700 for salaries and
nd $300 for advertising.
hdrew $3,000 from the account.
tement, owner’s equity
eet from these.
ules & Use of Data Validation:
st of ten accounts. You will
ebit or Credit when those
data validation for this.
al formula in the Decrease
site.
 ercise 07 Create a Journal and a Ledger: Your goal is to create a journal and a ledger
ing the following transaction data for a shop:
ecember 1 - Owner invested $10,000 on the business. Additionally, the owner
urchased office equipment of $5,000 for a 3-month, 13%, $5,000 note payable.
ecember 2 - Receives $1,200 cash in advance for a service that is expected to be
mpleted within the month.
ecember 3 - Paid rent expense of $900 in cash.
ecember 20 - The owner withdraws $4,000 for personal use.
ercise 08 Prepare Income Statement from a Trial Balance: An adjusted trial balance is
ven. Your task is to create an income statement using those values.
 Excel Accounting Practice Problems

Exercise 01 Use of Formatting:

# Date
1 30-Nov-22
2 30-Nov-22
3 01-Dec-22
4 02-Dec-22
5 03-Dec-22
6 03-Dec-22
7 04-Dec-22
8 04-Dec-22
9 05-Dec-22
10 06-Dec-22
11 06-Dec-22
12 07-Dec-22
13 08-Dec-22
14 09-Dec-22
15 10-Dec-22
16 10-Dec-22
17 10-Dec-22
18 11-Dec-22
19 12-Dec-22
20 12-Dec-22
21 13-Dec-22
Balance

Exercise 02 Transaction Analysis:

# Assets
1 $ 13,000
$ (5,000)
2
$ 5,000
3 $ 1,600
 4 $ 1,000
5
$ 1,200
6
$ 1,800

7 $ (1,400)

8 $ (200)
$ 400
9
$ (400)
10 $ (1,100)
Total $ 15,900

Exercise 03 Complete Financial Statements:

Income Statement
Revenues
Service Revenues
Expenses
Salaries and Wages Expense
Rent Expense
Advertisement Expense
Utilities Expense
Total Expense
Net Income

Owner's Equity Statement

Beginning Owner's Capital
Add: Investments
Net Income
Less: Drawings
Ending Owner's Equity Capital

Balance Sheet
Assets
Cash
Accounts Receivables
Supplies
Equipment
Total Assets
Liabilities and Owner's Equity
Liabilities
Accounts Payable
Owner's Equity
Owner's Capital
Total Liabilities and Owner's Equity

Cash Flow Statement

Cash Flow from Operating Activities
Cash Receipts from Revenues
Cash Payments for Expenses
Net Cash Flow from Operating Activities
Cash Flow from Investing Activities
Purchase of Equipment
Cash Flow from Financing Activities
Investment by Owner
Drawings by Owner
Net Increase in Cash
Cash at the Beginning of the Period
Cash at the End of the Period

Exercise 04 Examine the Impact of the Transactions:

# Statement
1 Cash investment to start a business.
2 Bought equipment on credit.
 3 Paid salaries and wages.
4 Billed customers for provided services.
5 Received cash from customers for transaction #4.
6 Withdrawal of cash for owner's personal use.
7 Advertising expense on credit.
8 Bought additional equipment on cash.
9 Received cash from customers for service.
10 Purchased laptop on account.
11 Paid cash for rent expense.
12 Received cash for service, billed last month.
13 Performed payroll services for cash.
14 Paid cash a company for their services.
15 Additional investment on the business.
16 Payment for the laptop purchased in transaction #10.
17 Incurred advertisement expense on account.
18 Bought Air Conditioner on credit.
19 Payment for the air conditioner

Exercise 05 Prepare Financial Statements from Transactions:

Ross's Company
Income Statement
For the Month Ended December 31,2022
Revenues
Service Revenues
Expenses
Salaries and Wages Expense
Rent Expense
Advertisement Expense
Utilities Expense
Total Expense
Net Income

Ross's Company
Owner's Equity Statement
 For the Month Ended December 31,2022
Beginning Owner's Capital
Add: Investments
Net Income
Less: Drawings
Ending Owner's Equity Capital

Ross's Company
Balance Sheet
December 31,2022
Assets
Cash
Accounts Receivables
Supplies
Equipment
Total Assets
Liabilities and Owner's Equity
Liabilities
Notes Payable
Accounts Payable
Owner's Equity
Owner's Capital
Total Liabilities and Owner's Equity

Exercise 06 Debit Credit Rules & Use of Data Validation:

Assets = Liabilities + Owner's Equity
Particulars Increase
Assets Debit
Liabilities Credit
Owner's Capital Credit
Owner's Drawings Debit
Revenues Credit
Expenses Debit
Income Credit
 Cost Debit
Dividend Debit
Equity Credit

Exercise 07 Create a Journal and a Ledger:

Journal J1
Date Account Title and Explanation
Cash
01-Dec-22 Owner's Capital
(Owner's Investment of Cash in business)
Equipment
01-Dec-22 Notes Payable
(Issued 3-month, 13% note for equipment)
Cash
02-Dec-22 Unearned Service Revenue
(Received cash for future services)
Rent Expense
03-Dec-22 Cash
(Paid December rent)
Owner's Drawings
20-Dec-22 Cash
(Cash withdrawal for personal use)

Ledger
Date Explanation
Cash
01-Dec-22
02-Dec-22
03-Dec-22
20-Dec-22

Equipment
01-Dec-22
 Notes Payable
01-Dec-22

Unearned Service Revenue

02-Dec-22

Owner's Capital
01-Dec-22

Owner's Drawings
20-Dec-22

Rent Expense
03-Dec-22

Exercise 08 Prepare Income Statement from a Trial Balance:

Account Title Debit
Cash $ 16,200
Supplies $ 1,300
Prepaid Insurance $ 550
Equipment $ 5,300
Notes Payable
Accounts Payable
Unearned Service Revenue
Owner's Capital
Owner's Withdrawal $ 700
Service Revenue
Salaries Expense $ 6,400
Rent Expense $ 750
Supplies Expense $ 1,650
Insurance Expense $ 50
Accumulated Depreciation - Equipment
Depreciation Expense $ 60
Accounts Receivable $ 220
 Interest Expense $ 120
Interest Payable
Salaries Payable

Income Statement
Particulars Value
Revenues
Service Revenue $ 11,600
Total Revenues $ 11,600
Expenses
Salaries Expense $ 6,400
Supplies Expense $ 1,650
Rent Expense $ 750
Insurance Expense $ 50
Interest Expense $ 120
Depreciation Expense $ 60
Total Expenses $ 9,030
Net Income $ 2,570
ractice Problems

Transaction Type Category Amount

Paycheck Salary $5,500.00
Profit from Food Business Profit/Loss $1,600.00
Health Insurance Insurances ($250.00)
Exercise 01 Use of Formatting:
Fed Tax Taxes ($450.00) in this first exercise. Your task is
State Tax Taxes ($300.00) expenses to red color. Then, fin
underline to it.
Car Insurance Insurances ($200.00) Exercise 02 Transaction Analys
use those to create a summary
Rent Rent ($1,700.00) the Assets, Liability and Owner
Loss from Travel Business Profit/Loss ($240.00) accounting equation.
Owner invests $13,000 cash on
Student Loan Loans ($200.00) Purchases equipment for $5,00
Car Loan Loans ($350.00) Buys supplies for $1,400 on cre
Service provided for $1,000 cas
Groceries Food ($700.00) Purchase of marketing advertis
Service provided for $1,200 cas
Games Entertainment ($320.00) Cash payment of office rent $5
Phone Bill Utilities ($200.00) $100.
Payment of accounts payable fo
Current Bill Utilities ($300.00) From the sixth transaction, the
Gym Memberships ($150.00) Owner’s withdrawal of $1,100.

Spa Personal ($340.00)

Netflix Memberships ($50.00)
Movies Entertainment ($300.00)
Restaurants Dining Out ($600.00)
Profit from Tool Business Profit/Loss $1,200.00
Spotify Entertainment ($25.00)
$1,625.00

Account Liabilities Account Owner's Equity

Cash $ 13,000
Cash
Equipment
Supplies $ 1,600 Accounts Payable
 Cash $ 1,000
$ 200 Accounts Payable $ (200)
Cash
$ 3,000
Accounts Receivables
$ (500)
Cash $ (800)
$ (100)
Cash $ (200) Accounts Payable
Cash
Accounts Receivables
Cash $ (1,100)
$ 1,600 $ 14,300

A= L+O
$ 15,900 $ 15,900
Balanced TRUE

$ 4,700.00

$ 900.00
$ 600.00
$ 250.00
$ 200.00
$ 1,950.00
$ 2,750.00

$ -
$ 13,000.00
$ 2,750.00
$ 1,100.00
$ 14,650.00

$ 6,250.00
$ 1,400.00
$ 1,600.00
$ 7,000.00
$ 16,250.00

$ 1,600.00

Exercise 03 Complete Financial Statements: Information is

$ 14,650.00 provided for four financial statements. Your task is to calculate
$ 16,250.00 the missing information.
Exercise 04 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).

$ 3,300.00
$ (1,950.00)
$ 1,350.00

$ (7,000.00)

$ 13,000.00
$ (1,100.00)
$ 6,250.00
$ -
$ 6,250.00

Increase Decrease
Assets, Owner's Equity
Assets, Liabilities
 Assets, Owner's Equity
Assets, Owner's Equity
Assets Assets
Assets, Owner's Equity
Liabilities Owner's Equity
Assets Assets
Assets Owner's Equity
Assets, Liabilities
Assets, Owner's Equity
Assets Assets
Assets, Owner's Equity
Assets, Owner's Equity
Assets, Owner's Equity
Assets, Liabilities
Liabilities Owner's Equity
Assets, Liabilities
Assets, Liabilities

$ 5,700.00

$ 700.00
$ 1,000.00
$ 300.00
$ 500.00
$ 2,500.00
$ 3,200.00

Exercise 05 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 happened.
 Exercise 05 Prepare Financial Statements from Transactions: Ross
$ - Geller opens his own firm on December 1,2022. During the first
$ 13,000.00 month of the operation, the following transactions happened.
Ross invested $13,000 in cash in the firm.
$ 3,200.00 Paid $1,000 toward the office's December rent.
$ 3,000.00 $5,000 worth of equipment was purchased with credit.
Performed services for a customer for cash of $1,700.
$ 13,200.00 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.
Now, create an income statement, owner’s equity statement, and
balance sheet from these.
Exercise 06 Debit Credit Rules & Use of Data Validation: In this
exercise, there is a list of ten accounts. You will return whether it wi
be Debit or Credit when those accounts increase. Use the data
$ 10,100.00 validation for this. Moreover, use a conditional formula in the
$ 4,000.00 Decrease column to return the opposite.

$ -
$ 5,000.00
$ 19,100.00

$ 900.00
$ 5,000.00

$ 13,200.00
$ 19,100.00

Decrease
Credit
Debit
Debit
Credit
Debit
Credit
Debit
 Credit
Credit
Debit

Ref. Debit Credit

101 $ 10,000.00
301 $ 10,000.00

157 $ 5,000.00
200 $ 5,000.00

101 $ 1,200.00
209 $ 1,200.00

729 $ 900.00
101 $ 900.00

306 $ 4,000.00
101 $ 4,000.00

Ref Debit Credit Balance

h No. 101
J1 $ 10,000.00 $ 10,000.00
J1 $ 1,200.00 $ 11,200.00
J1 $ 900.00 $ 10,300.00
J1 $ 4,000.00 $ 6,300.00

ment No. 157

J1 $ 5,000.00 $ 5,000.00
ayable No. 200
J1 $ 5,000.00 $ 5,000.00

vice Revenue No. 209

J1 $ 1,200.00 $ 1,200.00

Capital No. 301

J1 $ 10,000.00 $ 10,000.00

rawings No. 306

J1 $ 4,000.00 $ 4,000.00

pense No. 729

J1 $ 900.00 $ 900.00

Credit Statement
Balance Sheet
Balance Sheet
Balance Sheet
Balance Sheet Exercise 07 Create a Journal and a Led
the following transaction data for a sh
$ 5,200 Balance Sheet December 1 - Owner invested $10,000
office equipment of $5,000 for a 3-mo
$ 2,900 Balance Sheet December 2 - Receives $1,200 cash in
$ 1,000 Balance Sheet within the month.
December 3 - Paid rent expense of $90
$ 11,000 Balance Sheet December 20 - The owner withdraws $
Balance Sheet Exercise 08 Prepare Income Statemen
given. Your task is to create an income
$ 11,600 Income Statement
Income Statement
Income Statement
Income Statement
Income Statement
$ 60 Balance Sheet
Income Statement
Balance Sheet
 Income Statement
$ 120 Balance Sheet
$ 1,420 Balance Sheet
Exercise 01 Use of Formatting: Twenty one cash transactions are given
n this first exercise. Your task is to change the formatting of the
expenses to red color. Then, find the total value and give a double
underline to it.
Exercise 02 Transaction Analysis: Ten transactions are given. You will
use those to create a summary of the transaction (distribute them into
he Assets, Liability and Owner’s Equity account). After that, satisfy the
accounting equation.
Owner invests $13,000 cash on the business.
Purchases equipment for $5,000 cash.
Buys supplies for $1,400 on credit.
ervice provided for $1,000 cash.
Purchase of marketing advertisement for $200 on credit.
ervice provided for $1,200 cash and $1,800 on credit.
Cash payment of office rent $500, salaries and wages $800, utilities bill
$100.
Payment of accounts payable for the $200 marketing advertisement.
rom the sixth transaction, the owner received $400.
Owner’s withdrawal of $1,100.

Account
Owner's Capital
 Service Revenue
Advertising Expense

Service Revenue

Rent Expense
Salaries and Wages Expense
Utilities Expense

Owner's Drawings
ts: Information is
ur task is to calculate
ansactions: There
determine if those
assets, liabilities, and
 ents from Transactions: Ross
er 1,2022. During the first
g transactions happened.
 ents from Transactions: Ross
er 1,2022. During the first
g transactions happened.
firm.
mber rent.
hased with credit.
r cash of $1,700.
om a bank.
of $4,000 on account.
$700 for salaries and wages,
tising.
00 from the account.
wner’s equity statement, and
of Data Validation: In this
s. You will return whether it will
nts increase. Use the data
nditional formula in the
ite.
 07 Create a Journal and a Ledger: Your goal is to create a journal and a ledger using
owing transaction data for a shop:
er 1 - Owner invested $10,000 on the business. Additionally, the owner purchased
quipment of $5,000 for a 3-month, 13%, $5,000 note payable.
er 2 - Receives $1,200 cash in advance for a service that is expected to be completed
he month.
er 3 - Paid rent expense of $900 in cash.
er 20 - The owner withdraws $4,000 for personal use.
08 Prepare Income Statement from a Trial Balance: An adjusted trial balance is
our task is to create an income statement using those values.