Reference no: EM131786215

REQUIRED

a. Download the spreadsheet for problem 14.7 from the website for this textbook:

b. Create formulas to calculate the following:

• Accumulated depreciation (all assets use the straight-line method; all assets acquired any time during the year get a full year's initial depreciation)

• Current year's depreciation (straight-line method, full amount for initial year in which asset acquired)

• Ending accumulated depreciation

• Net book value at end of period

• Current year in the cell to the right of the phrase "Depreciation schedule for year"

• Column totals for acquisition cost, beginning depreciation, current depreciation, ending accumulated depreciation, net book value

• In the cell to the right of the arrow following the text "Cross-footing test," create a formula that checks whether the sum of the net book value column equals the sum of acquisition costs minus the sum of ending accumulated depreciation. If the two values match, the formula should display the text "Okay"; otherwise, it should display the text "Error."

c. Create a table at the bottom of your worksheet that consists of two columns: (1) asset name (values should be chair, desk, laptop, monitor, software, and workstation); and (2) net book value (create a formula to calculate this number), assuming that the current date is 06/30/2014. Then:

• Create a formula that sums the total net book values for all classes of assets.

• In the cell to the right of the total net book values for all asset classes, create a formula that compares the total net book values for all classes of assets to the sum of all net book values in the top portion of the spreadsheet. The formula should return "Okay" if the two totals match or "Error: Sum of net book values by asset class does not equal sum of all net book values" if the two totals do not equal one another.

d. Enter your name in row 1 in the cell to the right of the text "Name."