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1 B CD Ace Company purchased a prepaid 3-year software license on January 1, 20X1. Manually enter an amount for this license of your choice in the appropriate cell below. Next, calculate and enter values that should appear in the applicable income statements and balance sheets for successive time periods. Entering correct values in the income statement and balance sheet cells will cause the cells to turn green. 1 Enter an amount of your choice for the purchase price of the software license 3 4 Balance Sheet Presentation as of December 31, 20X1 5 6 Prepaid software license 7 8 9 10 Income Statement Presentation For the Year Ending December 31, 20X1 11 Software license expense 12 13 14 Balance Sheet Presentation as of December 31, 20X2 15 16 Prepaid software license 17 18 Problem Financial statement presentation of prepaids - Excel Search utoSave ON le Home Insert Draw Page Layout Formulas Data Review View Help fx A B CD Software license expense 3 4 Balance Sheet Presentation as of December 31, 20X2 5 16 17 Prepaid software license 18 19 20 Income Statement Presentation For the Year Ending December 31, 20X2 21 Software license expense 22 23 24 25 Balance Sheet Presentation as of December 31, 20X3 26 27 Prepaid software license 28 29 30 Income Statement Presentation For the Year Ending December 31, 20X3 31 32 Software license expense 33

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