Lessons
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Excel for Accounting (MO-220 practice)
5 modules · 39 lessons · 121 exercises
Module 1
Spreadsheet essentials for accountants
References, totals, rounding, periods and number formats: what the MO-220 exam assumes you know. · 6 lessons
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Relative and absolute references
Write one formula, fill it down or across, and lock the cells that must not move.
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Totals on a ledger
Summarize a ledger column: total, count, average, largest and smallest, skipping voided entries.
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Rounding to the cent
Round amounts to whole cents, cut interest down to the cent, and put the rounding difference where it belongs.
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Monthly periods with Fill
Turn one starting row into a 12-month calendar of period starts, month-ends and a growing forecast.
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Budget vs actual
Compare actual results with the budget: the variance in dollars, as a percentage, and whether it is favorable.
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Accounting number formats
Show amounts as currency and accounting formats, with negatives in parentheses and percentages to one decimal.
Module 2
Prepare accounting data for analysis
Import, clean, validate and transform transaction data. · 9 lessons
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Flag values outside expected ranges
Mark claims over a limit, hours outside an allowed range, and count the payments that need a second look.
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Split account code and name
Pull the account code and the account name out of one exported text column.
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Combine and clean text
Tidy messy names, build invoice memos from several columns, and turn imported text amounts into numbers.
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Transaction dates to periods
Turn transaction dates into accounting periods: month-ends, year and month, sortable labels and fiscal quarters.
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Due dates and days outstanding
Work out due dates from payment terms and business days, and measure how long invoices stay unpaid.
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Remove duplicate transactions
Find transactions exported twice: count each reference, flag the extra copies, and total the clean list.
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Import a bank export
Turn a delimited bank export into a clean table with the right column types.
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Data validation for account codes
Restrict a column to valid account codes with a list rule.
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Hide, delete and format consistently
Delete or hide rows and columns and apply consistent formats to a ledger.
Module 3
Prepare a trial balance
Sort, filter, total and look up ledger data, then build a trial balance that balances. · 6 lessons
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Sort the general ledger
Sort ledger lines by several levels (account, then date, then amount) and check the resulting order.
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Filter transactions
Pull the ledger lines that meet one or more conditions with a single formula whose result spills into the cells below, and sort the result.
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Totals by account
Total a ledger by account, by account and department, and by amount limits with conditional sums and counts.
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Look up account names and types
Pull account names and types from an unsorted chart of accounts by account number, and catch numbers that are not in the chart.
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Normal balances with IF
Decide each account's normal balance side, compute its balance on that side and flag zero and abnormal balances with logical functions.
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Trial balance
Summarize a general ledger by account with conditional sums and lookups, then prove debits equal credits.
Module 4
Prepare and analyze financial statements
Build, format, check and analyze the income statement and balance sheet. · 9 lessons
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Income statement from a trial balance
Aggregate account balances by category into an income statement, handle debit and credit columns and contra revenue, and compare two years.
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Balance sheet that balances
Total a trial balance by classification into a balance sheet, net contra accounts, bring in net income and prove assets equal liabilities plus equity.
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Format statements for presentation
Apply accounting number formats, totals and headings so the statements are ready to present.
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Financial ratios
Profitability, liquidity and solvency ratios from an income statement and balance sheet.
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Liquidity and solvency ratios
Measure short-term liquidity and long-term solvency from the statements, then judge whether each ratio improved year over year.
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Highlight anomalies
Use conditional formatting rules to highlight unusual balances and reconciling items.
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Find and fix formula errors
Audit a sheet with planted mistakes: ranges that are off, references that break when filled, and errors that spread, then rebuild the formulas correctly.
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Summarize with PivotTables
Summarize the general ledger by account and month with a PivotTable.
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Charts and a one-page dashboard
Choose chart types and ranges, add titles and alt text, and lay out a one-page dashboard.
Module 5
Perform routine accounting activities
Loans, bank reconciliations, aging, payroll and depreciation. · 9 lessons
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Loan amortization schedules
Calculate fixed loan payments and build a schedule of interest, principal and balance.
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Bank reconciliation
Adjust the bank and book balances, and find outstanding checks and deposits in transit with formulas.
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Find outstanding checks and deposits in transit
Match the book's checks and deposits against the bank statement to find outstanding checks and deposits in transit, then adjust the bank balance.
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Accounts receivable aging and bad debt
Age customer invoices into buckets and estimate the allowance for doubtful accounts.
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AP aging and payment schedule
Work out vendor due dates and days past due, age payables into buckets, and plan payments that take early-payment discounts.
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Payroll: gross to net
Gross pay with overtime, withholding and net pay, employer payroll taxes and spotting irregularities, using an example rate table.
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Employer payroll taxes and irregularities
Work out employer payroll taxes with example rates and wage bases, then flag duplicate IDs, excess hours and pay that doesn't add up.
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Depreciation schedules
Straight-line, double-declining balance and sum-of-the-years' digits depreciation, with book values.
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Projected depreciation and units of production
Project depreciation by usage and from a mid-year start, then forecast a whole asset register year by year.
Bookkeeping practice
10 modules · 43 lessons · 160 exercises
Module 1
Foundations
The accounting equation, account types, normal balances and debits and credits. · 4 lessons
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The accounting equation
Find the missing amount: assets, liabilities, owner's equity and the changes in equity, worked from transactions.
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Account types and normal balances
Sort accounts into the five types and say which side each one normally carries its balance on.
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Debits and credits
Record everyday transactions: which accounts change, and which side each goes on.
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Classify the chart of accounts
Place each account on its financial statement and in its section of a classified balance sheet.
Module 2
Recording transactions
Journal entries for sales, purchases, returns, discounts, owner activity, loans and payroll. · 7 lessons
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Sales and purchases
Credit sales, buying inventory, and recording the cost of goods sold.
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Returns and allowances
Record sales and purchase returns and allowances, including putting returned goods back into inventory.
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Sales and purchase discounts (2/10, n/30)
Read credit terms like 2/10, n/30, decide whether a payment earns the discount, and record it.
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Sales tax collected and remitted
Record sales tax charged on sales as a liability, split tax-included totals, and record paying it over (example rates only).
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Owner investments and drawings
Record what a sole proprietor puts into and takes out of the business: cash, assets at fair value, goods at cost and personal bills.
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Notes payable and interest
Record borrowing on a note, converting a supplier account to a note, accruing interest and repaying principal plus interest.
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Payroll entries
Record wages, amounts withheld, employer payroll taxes and paying them over. Amounts are given; no tax rules needed.
Module 3
Ledger and trial balance
Post to the ledger, prepare a trial balance and find errors. · 4 lessons
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Post to T-accounts
Post a month's journal entries to T-accounts, then total each side and find each account's balance.
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General ledger running balances
Keep a ledger account in balance-column form: work out the balance after every debit and credit, on the account's normal side.
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Trial balance
Find each account's balance from its T-account and prove debits equal credits.
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Find and correct errors
Fix transpositions, slides, wrong accounts and duplicated entries with correcting entries, without erasing the original.
Module 4
Adjusting entries
Prepaids, unearned revenue, accruals, depreciation and bad debts. · 7 lessons
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Prepaid expenses
Pay in advance, then adjust for the part used up.
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Unearned revenue
Customer payments received before the work is done, and earning them over time.
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Accrued expenses
Expenses incurred but not yet paid at the end of a period: wages, interest and bills.
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Accrued revenue
Record revenue earned but not yet billed or collected at the end of a period: unbilled services and interest on notes receivable, then the later collection.
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Depreciation entries
Record depreciation and the sale of equipment. Uses the same assets as the Excel depreciation lesson.
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Bad debts: the allowance method
Estimate uncollectible accounts with the allowance method (percent of sales and aging of receivables) and write off accounts that won't be paid.
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Supplies and inventory shrinkage
Bring Supplies and Inventory in line with a physical count: record supplies used and inventory shrinkage.
Module 5
Financial statements
Adjusted trial balance, income statement, equity statement and balance sheet. · 4 lessons
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Adjusted trial balance
Apply the month-end adjustments to an unadjusted trial balance and prepare the adjusted trial balance, with every account on its debit or credit side.
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Income statement
Build an income statement from an adjusted trial balance: revenues, expenses, totals and net income or loss.
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Statement of owner’s equity
Prepare the statement of owner's equity: beginning capital, owner investments, net income or loss, drawings and ending capital.
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Classified balance sheet
Prepare a classified balance sheet: current assets, property and equipment net of depreciation, current and long-term liabilities, and ending owner's capital.
Module 6
Closing the books
Closing entries, the post-closing trial balance and reversing entries. · 3 lessons
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Closing entries
Close revenues, expenses and drawing at year end through Income Summary.
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Post-closing trial balance
Prepare the trial balance after closing: only permanent accounts remain, with capital updated for net income and drawings.
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Reversing entries
Reverse year-end accruals on January 1, then record the later payment or receipt with and without a reversal.
Module 7
Cash, receivables and payables
Bank reconciliations, petty cash, subsidiary ledgers and notes. · 5 lessons
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Bank reconciliation adjustments
Record the book-side items a bank reconciliation finds. Uses the same statements as the Excel bank reconciliation lesson.
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Reconcile a bank statement
Tick and match the bank statement against the Cash account, list the reconciling items and find the adjusted balance.
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Petty cash
Set up a petty cash fund, replenish it from the receipts with any cash short or over, and increase it.
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Subsidiary ledgers and control accounts
Post a month's transactions to customer and supplier accounts, then check that the control account equals their total.
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Notes receivable
Accept a note from a customer, accrue interest earned, collect principal plus interest, and record a dishonored note.
Module 8
Inventory
Perpetual and periodic inventory, cost flow methods and lower of cost or NRV. · 4 lessons
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Perpetual inventory entries
Record merchandise purchases, freight, returns, discounts and sales when Inventory is updated with every transaction.
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Periodic inventory and cost of goods sold
Record purchases in temporary accounts during the year, then work out cost of goods sold from a year-end count.
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FIFO, LIFO and weighted average
Build a cost-flow schedule in a spreadsheet: ending inventory and cost of goods sold under FIFO, LIFO and weighted average.
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Lower of cost or net realizable value
Value inventory at the lower of cost and net realizable value in a spreadsheet, item by item, and work out the write-down.
Module 9
Long-term assets and liabilities
Capitalized costs, disposals, installment notes and bonds. · 4 lessons
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Capitalized asset cost
Decide which costs become part of a long-term asset (capitalized) and which are expensed, including splitting a lump-sum purchase.
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Selling or scrapping equipment
Remove equipment from the books when it is sold or scrapped: update depreciation, clear cost and accumulated depreciation, and record the gain or loss.
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Installment notes
Split each installment payment between interest on the balance owed and repayment of principal.
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Bonds payable basics
Record bonds issued at par, at a discount and at a premium, and the first interest payment with straight-line amortization.
Module 10
Month-end practice
A full month-end close and timed bookkeeping tests. · 1 lesson
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Month-end close practice set
One company, one month, start to finish: record a transaction, prepare the trial balance, adjust, prepare the adjusted trial balance and income statement, and close the books.
Payroll practice
3 modules · 10 lessons · 32 exercises
Module 1
Gross pay
Hourly pay with overtime, salaried pay for full and partial periods, and commissions and bonuses. Example rates only. · 3 lessons
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Hourly pay and overtime
Split weekly hours into regular and overtime hours and calculate gross pay under an example overtime rule.
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Salaried and partial periods
Turn annual salaries into pay per period for weekly, biweekly, semimonthly and monthly schedules, and prorate pay for partial periods under an example policy.
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Commissions and bonuses
Calculate flat and tiered commissions and a quota bonus under an example pay plan, then each salesperson's gross pay.
Module 2
Deductions and net pay
Pre-tax and after-tax deductions, withholding from an example table, employer taxes at example rates and the payroll register. · 4 lessons
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Pre-tax vs after-tax deductions
Work out taxable wages, example withholding and net pay when some deductions come out before tax and some after.
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Withholding with an example table
Look up each employee's bracket in a fictional withholding table and work out withholding as a base amount plus a percentage of the excess.
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Employer taxes (example rates)
Work out the employer's own payroll taxes at example rates, including a tax that stops at an example wage base, and the total cost of each employee.
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The payroll register
Build a payroll register at example rates, from gross pay to net pay with column totals, and check that every row cross-foots.
Module 3
Recording payroll
Journal entries for payroll, paying payroll liabilities and accruing wages at period end. · 3 lessons
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Payroll journal entries
Record payroll from register totals or example rates: wages expense, amounts withheld, net pay, and the employer's own payroll taxes.
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Paying payroll liabilities
Pay what payroll left owing: net wages, retirement contributions sent to the plan, and withheld and employer taxes worked out at example rates.
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Accrued payroll at period end
Accrue wages earned but not yet paid at period end, add the employer's example payroll taxes, and clear the accrual on the next payday.