You need Apple's iWork suite of apps - Pages for word processing and Numbers for spreadsheet. M$ has not made Office for iPads. iWork is compatible with Office. http://www.apple.com/creativity-apps/mac/
How are other office solutions besides the ever popular IWork package...
• VIEW/EDIT/CREATE Word & Excel files(Office 2007/2008/2010)
• VIEW PowerPoint, PDF, iWork, Text, .RTF, and more!
• Send & receive attached supported documents using the built-in Mail app
• FREE desktop application with your purchase! Compatible on Win & Mac allows you 2-way file sync with a WIFI connection.
• Open & Edit files within DocsToGo from any 3rd party app that supports the “Open In” feature
• Supports iTunes File Sharing via USB cable for manually moving files
"Office² HD, the most intuitive and straightforward office document editor available on the iPad, makes it easy to open, view, create and edit Word (DOC & DOCX), Excel (XLS & XLSX), and PowerPoint (PPT & PPTX) files right from your iPad!"
Quickoffice Pro HD
Create and edit ALL Microsoft® Office -- document, spreadsheet, and presentation formats, as well as view PDF files, on the go. Our advanced file manager lets you manage local files, access Google Drive or other cloud accounts, and works with your iPad email attachments so you can work anywhere, anytime - online and offline.
nsdjoey presents ways to edit office documents in this web page: