Professional Documents
Culture Documents
Chapters 129
First-Year Course
Copyright by The McGraw-Hill Companies, Inc. All rights reserved. Permission is granted to reproduce the material contained herein
on the condition that such materials be reproduced only for classroom use; be provided to students, teachers, and families without
charge; and be used solely in conjunction with the Glencoe Accounting program. Any other reproduction, for sale or other use, is
expressly prohibited.
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2 3 4 5 6 7 8 9 079 12 11 10 09 08 07 06
2 3 4 5 6 7 8 9 079 12 11 10 09 08 07 06
CONTENTS
Chapter 1: You and the World of Accounting
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
iv Table of Contents
Chapter 12: Payroll Accounting
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Table of Contents v
Chapter 17: Special Journals: Purchases and Cash Payments
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 458
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 461
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 489
vi Table of Contents
Chapter 22: Cash Funds
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 637
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 641
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 655
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 659
CHAPTER
Study Guide
1 You and the World of Accounting
Section Assessment
Section 1 Read Section 1 on pages 611 and complete the following exercises on page 12.
Reinforce the Main Idea
Do the Math
Problem 1-1 Studying Yourself
Problem 1-2 Gathering Career Resources
Section 2 Read Section 2 on pages 1315 and complete the following exercises on page 16.
Reinforce the Main Idea
Do the Math
Problem 1-3 Checking Out Accounting Careers
Problem 1-4 Matching Interests and Careers
Problem 1-5 Researching Public Accounting Firms
Problem 1-6 Interviewing Accountants
Chapter Assessment
Summary Review the Chapter 1 Summary on pages 1819 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 20 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Problems Complete the following End-of-Chapter Problems for Chapter 1 in your textbook.
Problem 1-7 Researching Careers in Your Library
Problem 1-8 Researching Careers in Your Local Newspaper
Problem 1-9 Assessing Your Skills and Interests
Problem 1-10 Working With Others
Problem 1-11 Summarizing Personal Traits
Problem 1-12 Gathering Career Information
Problem 1-13 Exploring Careers in Accounting
Copyright by The McGraw-Hill Companies. All rights reserved.
6 1
Chapter 1
Name Date Class
Identify one or more careers that match the interests and skills you listed above.
Choose one of the above careers and write a description of how your skills and interests t
into this career.
2 Chapter 1
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Chapter 1 3
Name Date Class
4 Chapter 1
Name Date Class
Chapter 1 5
Name Date Class
6 Chapter 1
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List the personal interests and skills of the accountants described in the text.
List three types of businesses (or actual companies) for which you might like to work.
How would you learn about accounting career opportunities in the above companies?
Aside from pursuing needed training and education, what else would you do to prepare to
work in that career?
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 1 7
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Web site:
Web site:
Web site:
Web site:
8 Chapter 1
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Chapter 1 9
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Using your answers above, list three careers that might match your skills and interests.
10 Chapter 1
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Discuss project
cost overruns with
a department
manager
Present operating
results to senior
managers
1.
2.
3.
4.
5.
6.
7.
8.
9.
Copyright by The McGraw-Hill Companies. All rights reserved.
10.
Chapter 1 11
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12 Chapter 1
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Chapter 1 13
Name
14 Chapter 1
Notes
Date
Class
CHAPTER
Study Guide
2 The World of Business and Accounting
Section Assessment
Section 1 Read Section 1 on pages 2831 and complete the following exercises on page 32.
Reinforce the Main Idea
Do the Math
Problem 2-1 Assess Your Entrepreneurship Potential
Section 2 Read Section 2 on pages 3335 and complete the following exercises on page 36.
Reinforce the Main Idea
Do the Math
Problem 2-2 Using Financial Information
Problem 2-3 Identifying Accounting Assumptions
Chapter Assessment
Summary Review the Chapter 2 Summary on pages 3839 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on pages 40 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Problems Complete the following End-of-Chapter Problems for Chapter 2 in your textbook.
Problem 2-4 Identifying Types of Businesses
Problem 2-5 Understanding Accounting Assumptions
Problem 2-6 Understanding Business Operations
Problem 2-7 Categorizing Forms of Business Organizations
Challenge Problem Problem 2-8 Working as an Entrepreneur
Applications and
Connections Case Study International Accounting
A Matter of Ethics Making It Personal
Communicating Accounting WebQuest
6 15
Chapter 2
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16 Chapter 2
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1. 5. 9.
2. 6. 10.
3. 7. 11.
4. 8. 12.
1. 3. 5.
Copyright by The McGraw-Hill Companies. All rights reserved.
2. 4. 6.
1.
2. prot on bread sales:
calculations:
3.
Chapter 2 17
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1. 6.
2. 7.
3. 8.
4. 9.
5. 10.
Advantage Disadvantage
18 Chapter 2
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3
Business Transactions and
CHAPTER the Accounting Equation
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 5052 and complete the following exercises on page 53.
Reinforce the Main Idea
Do the Math
Problem 3-1 Balancing the Accounting Equation
Section 2 Read Section 2 on pages 5458 and complete the following exercises on page 59.
Reinforce the Main Idea
Do the Math
Problem 3-2 Determining the Effects of Transactions on the Accounting Equation
Section 3 Read Section 3 on pages 6062 and complete the following exercises on page 63.
Reinforce the Main Idea
Do the Math
Problem 3-3 Determining the Effects of Transactions on the Accounting Equation
Chapter Assessment
Summary Review the Chapter 3 Summary on pages 6465 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 66 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 67 in your textbook.
Accounting Exploring Electronic Spreadsheets
Problems Complete the following End-of-Chapter Problems for Chapter 3 in your textbook.
Problem 3-4 Classifying Accounts
Problem 3-5 Completing the Accounting Equation
Problem 3-6 Classifying Accounts Within the Accounting Equation
Problem 3-7 Determining Increases and Decreases in Accounts
Problem 3-8 Determining the Effects of Transactions on the Accounting Equation
Copyright McGraw-Hill Companies. All rights reserved.
6 19
Chapter 3
Name Date Class
1 $17,000 $ 7,000 +
2 $ 6,000 + $20,000
3 $10,000 + $ 7,000
4 $ 9,000 + $17,000
5 $ 8,000 $ 2,000 +
6 $20,000 $ 7,000 +
7 $12,000 + $ 4,000
8 $30,000 + $22,000
9 $22,000 $ 1,000 +
10 $25,000 $ 5,000 +
11 $10,000 + $25,000
12 $ 7,500 + $ 3,000
Owners
Assets = Liabilities +
Equity
1
2
3
4
5
6
Bal.
20 Chapter 3
Name Date Class
Owners
Assets = Liabilities +
Equity
Cash in Accounts Computer Office Accounts Jan Swift,
+ + + = +
Trans. Bank Receivable Equipment Equipment Payable Capital
Bal. 24,000 700 4,000 5,000 3,000 30,700
1
2
3
4
5
Bal. +
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 3 21
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1. 5. 9.
2. 6. 10.
3. 7.
4. 8.
Analyze:
Analyze:
(1)
Total
(2)
(3)
22 Chapter 3
Name Date Class
Amount of
Transaction Accounts Affected Classification
Increase (+) or Decrease (-)
4
Copyright by The McGraw-Hill Companies. All rights reserved.
Analyze:
Chapter 3 23
Name Date Class
Owners
Assets = Liabilities + Equity
Abe
Cash in Accounts Office Grooming Accounts Schultz,
Trans. Bank Receivable Equipment Equipment = Payable + Capital
1 + $10,000 + $10,000
Balance
2
Balance
3
Balance
4
Balance
5
Balance
6
Balance
7
Balance
Analyze:
24 Chapter 3
Name Date Class
Owners
Assets = Liabilities +
Equity
Cash in Accounts Hiking Rafting Office Accounts Juanita Ortega,
= +
Trans. Bank Receivable Equipment Equipment Equipment Payable Capital
1
Balance
2
Balance
3
Balance
4
Balance
5
Balance
6
Balance
7
Balance
8
Balance
Copyright by The McGraw-Hill Companies. All rights reserved.
9
Balance
10
Balance
Analyze:
Chapter 3 25
Name Date Class
6.
7.
8.
9.
10.
Analyze:
Owners
Assets = Liabilities +
Equity
Accounts Business Accounts Richard Tang,
Cash in Bank + + = +
Receivable Equipment Payable Capital
Analyze:
26 Chapter 3
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Learning to Use a Spreadsheet Program
Accountants use several tools to help them evaluate and present various nancial
information. One tool that has proven to be invaluable to accountants is the
electronic spreadsheet. An electronic spreadsheet is simply a computerized
version of the paper work sheet with which you are probably already familiar.
The advantage of using an electronic spreadsheet is that changes and corrections
can be made to the spreadsheet very quickly.
Before you begin using spreadsheet software, there are some terms with which
you should become familiar:
Column: a vertical area of varying width that is labeled with a letter.
Row: a horizontal area that is labeled with a number.
Cell: the intersection of a column and a row. The intersection is referenced by
the column and row. For example, cell C12 is the point at which column C and
row 12 intersect.
Cell pointer: a rectangular block that highlights the current cell. When you want
to enter data in a cell, rst use the mouse or arrow keys to move the cell pointer to
that position.
Template: a spreadsheet that contains formulas, labels, and formatting codes; the
template can be used simply by typing information in the appropriate cells.
Work sheet: a spreadsheet document. The cells where you enter labels, amounts,
and formulas are collectively referred to as a work sheet.
Begin a Session Using Glencoe Accounting:
Electronic Learning Center
Step 1 Turn on your computer.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Copyright by The McGraw-Hill Companies. All rights reserved.
Step 4 Log onto the Accounting Management System by typing in your user
name and password.
Step 5 Under the Problems & Tutorials tab, select the chapter and problem
you want to work on. Click Launch.
Step 6 Your spreadsheet application will launch and the template will load.
Step 7 Complete the spreadsheet problem according to the instructions in
the problems Spreadsheet Guide.
Spreadsheet Guide
Continue from a Previous Session
If you have been directed to save your work to a network, select the problem
from the Problems & Tutorials list. The system will automatically retrieve
your les from the previous session.
If you have been directed to save your work to a oppy disk, and you want
to continue to work on the problem you have saved, be sure the correct
oppy is in the drive and select Continue working on this problem. If
the Accounting Management System is unable to nd a le on the oppy
corresponding to the problem you have selected, it assumes you want to
start the problem with a fresh template, in which case you may lose any
work you previously completed.
Chapter 3 27
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can change your print settings to print the worksheet landscape. Landscape means
that the worksheet will be printed broadside on the page. Some spreadsheet applica-
tions also allow you to choose a t to page option. This function will reduce the
width and depth of the worksheet to t on one page.
End the Session
After working with the software, you should exit the program. Then remove the
template disk from the drive (if necessary) and turn off the computer.
28 Chapter 3
Name Date Class
PROBLEM 3-9
DETERMINING THE EFFECTS OF BUSINESS
TRANSACTIONS ON THE ACCOUNTING EQUATION
(name)
(date)
BALANCE $0 $0 $0 $0 $0 $0 $0
Copyright by The McGraw-Hill Companies. All rights reserved.
TOTAL ASSETS $0
TOTAL LIABILITIES $0
TOTAL OWNERS EQUITY $0
TOTAL LIABILITIES + OWNERS EQUITY $0
Spreadsheet Guide
Step 6 Type your name in the cell containing the (name) placeholder. After
you type your name and press Enter, the (name) placeholder will be
replaced by the information you just typed.
Step 7 Type todays date in the cell containing the (date) placeholder. After
you type the date and press Enter, the (date) placeholder will be
replaced by the information you just keyed. When you work with any
of the other spreadsheet templates, your name and date should always
be typed in the cells containing the (name) and (date) placeholders.
Chapter 3 29
Name Date Class
4)0 Options you select in the regional options of the Control Panel
determine the default format for the current date and time
and the characters recognized as date and time separatorsfor
example, the slash (/) and colon (:) on United States-based
systems. Be careful not to enter an equal sign before entering a
date with slashes, as your spreadsheet application may view the
date as a formula and the slashes as division symbols
Step 8 In the rst transaction, Ms. Ortega opened a checking account for
the business. Cash in Bank is increasing, and Juanita Ortega, Capital,
is increasing. To record this transaction in the spreadsheet template,
move the cell pointer to cell B12 and type 60000.
4)0 To enter data into the cell, you must rst type the data and then
press Enter. Do not type a dollar sign or a comma when you
enter the datathe spreadsheet template will automatically
format the data when it is entered.
assets equal $60,000. Total liabilities plus owners equity also equal
$60,000. The accounting equation is in balance.
30 Chapter 3
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Step 11 Analyze the remaining transactions in Problem 3-9 and type the
appropriate data into the spreadsheet template.
Check the totals at the bottom of the spreadsheet after each transac-
tion has been entered. Remember, total assets should always equal
total liabilities plus owners equity. If the accounting equation
becomes out of balance, check your work to nd the error.
Step 12 Save the spreadsheet using the Save option from the File menu. You
should accept the default location for the save, as this is handled by
the Accounting Management System.
Chapter 3 31
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What-If Analysis
If Ms. Ortega withdrew an additional $1,500 from the business for personal use,
what would the balance in the Juanita Ortega, Capital account be?
32 Chapter 3
Name Date Class
4
Transactions that Affect Assets, Liabilities,
CHAPTER and Owners Capital
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 7881 and complete the following exercises on page 82.
Reinforce the Main Idea
Do the Math
Problem 4-1 Applying the Rules of Debit and Credit
Section 2 Read Section 2 on pages 8387 and complete the following exercises on page 88.
Reinforce the Main Idea
Do the Math
Problem 4-2 Identifying Increases and Decreases in Accounts
Chapter Assessment
Summary Review the Chapter 4 Summary on pages 9091 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 92 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 93 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 4 in your textbook.
Problem 4-3 Identifying Accounts Affected by Transactions
Problem 4-4 Using T Accounts to Analyze Transactions
Problem 4-5 Analyzing Transactions into Debit and Credit Parts
Problem 4-6 Analyzing Transactions into Debit and Credit Parts
Challenge Problem Problem 4-7 Analyzing Transactions Recorded in T Accounts
Winning Complete the exercises on page 99 in your textbook.
Copyright by The McGraw-Hill Companies. All rights reserved.
Competitive Events
Real-World Critical Thinking Skills Beyond Numbers
Applications and Case Study International Accounting
Connections A Matter of Ethics Making It Personal
Communicating Accounting
Chapter 4 33
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b.
2.a.
b.
3.a.
34 Chapter 4
Name Date Class
1.
2.
3.
4.
Analyze:
Analyze:
Chapter 4 35
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Analyze:
36 Chapter 4
Name Date Class
Analyze:
Chapter 4 37
Name Date Class
10
Analyze
38 Chapter 4
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 4-6 Analyzing Transactions into Debit and Credit Parts
Complete the Spreadsheet
Step 1 Read the instructions for Problem 4-6 in your textbook.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Management System by typing your user name
and password.
Step 5 Under the Problems and Tutorials tab, select template 4-6 from the
Chapter 4 drop-down list. The template should look like the one
shown below.
PROBLEM 4-6
ANALYZING TRANSACTIONS INTO
DEBIT AND CREDIT PARTS
(name)
(date)
Accounts Receivable -
Cash in Bank Mary Johnson Office Equipment
0 0 0
0 0 0
Spreadsheet Guide
0 0 0
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 In the rst transaction, Juanita Ortega transferred an additional
$53,250 from her personal account to the business. Two accounts are
affected by this transaction: Cash in Bank and Juanita Ortega, Capital.
To record this transaction, move to cell A10, the rst cell on the debit
side of the Cash in Bank T account, and type 53250.
Chapter 4 39
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4)0 To enter data into a cell, you must rst type the data and then
press Enter. Do not type a comma when you type the data.
Step 8 Next, move to cell H30, the rst cell on the credit side of the Juanita
Ortega, Capital T account. Type 53250 in cell H30 to record the
credit to Juanita Ortega, Capital. Move the cell pointer to cell H35.
Notice that the spreadsheet automatically calculates the balance in
each T account.
Step 9 To check your work, look at cells D39 and D40. The sum of debit bal-
ances equals $53,250. The sum of credit balances also equals $53,250.
Step 10 Analyze the remaining transactions in Problem 4-6 and type the
appropriate data into the spreadsheet template.
Check the totals at the bottom of the spreadsheet after each
transaction has been entered. Remember, the sum of debit balances
should always equal the sum of credit balances. If the debit and credit
balances become out of balance, check your work to nd the errors.
Step 11 Save the spreadsheet using the Save option from the File menu. You
should accept the default location for the save, as this is handled by
the management system.
Step 12 Print the completed spreadsheet.
Step 13 Exit the spreadsheet program.
Step 14 In the Close Options window, select the location where you would like
to save your work.
Step 15 Complete the Analyze activity from your textbook for this problem.
What-If Analysis
If Juanita Ortega purchased a computer for $1,500 cash, what would the balance
Spreadsheet Guide
40 Chapter 4
Name Date Class
5
Transactions that Affect Revenue,
CHAPTER Expenses, and Withdrawals
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 104109 and complete the following exercises on page 110.
Reinforce the Main Idea
Do the Math
Problem 5-1 Applying the Rules of Debit and Credit
Section 2 Read Section 2 on pages 111115 and complete the following exercises on page 116.
Reinforce the Main Idea
Do the Math
Problem 5-2 Identifying Accounts Affected by Transactions
Chapter Assessment
Summary Review the Chapter 5 Summary on pages 118119 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 120 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 121 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 5 in your textbook.
Problem 5-3 Identifying Increases and Decreases in Accounts
Problem 5-4 Using T Accounts to Analyze Transactions
Problem 5-5 Analyzing Transactions into Debit and Credit Parts
Problem 5-6 Analyzing Transactions into Debit and Credit Parts
Problem 5-7 Analyzing Transactions
Challenge Problem Problem 5-8 Completing the Accounting Equation
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 5 41
Name Date Class
1.
2.
3.
42 Chapter 5
Name Date Class
1.a.
b.
2.a.
b.
3.a.
b.
Analyze:
1.
Copyright by The McGraw-Hill Companies. All rights reserved.
2.
3.
4.
Analyze:
Chapter 5 43
Name Date Class
44 Chapter 5
Name Date Class
Analyze:
Chapter 5 45
Name Date Class
Totals $ $
Analyze:
46 Chapter 5
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
Chapter 5 47
Name Date Class
Totals $ $
Analyze:
Owners
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Change the company name.
2. Set the system date.
3. Print a Chart of Accounts report.
4. Enter a new general ledger account.
5. Record a beginning balance for a general ledger account.
6. Explain the purpose of the account type settings.
INSTRUCTIONS
$/ 9/5 (!6%
! 15%34)/.
Q.
Are there any differences
between a manual system
and computerized system
Begin a Session when you set up a chart of
accounts?
Step 1 Open the Glencoe Accounting: Electronic Learning Center soft-
ware and click on the Peachtree Complete Accounting
A. When you set up a chart
of accounts using Peachtree,
Software and Spreadsheet Applications icon. you must enter an account
Step 2 Log onto the system by typing your user name and password. number and a title for each
Step 3 From the scrolling list of chapter problems, select the problem general ledger account just
set: Wilderness Rentals (Prob. 5-3). like you would in a manual
Step 4 Rename the company by adding your initials, e.g., Wilderness system. Using a computerized
(Prob. 5-3: XXX). system such as Peachtree,
however, you must categorize
Choose Company Information from the Maintain menu. each account by assigning
Review the information in the Maintain Company an account type (e.g., asset,
Copyright by The McGraw-Hill Companies. All rights reserved.
Click OK to
record any
changes to
Add your
the company
initials to the
infomation
company
name
Select a
Choose the specic
report area report
from this list from
this list
Figure 5-3B Select a Report Window with the General Ledger Reports
50 Chapter 5
Name Date Class
Peachtree Guide
Indicates if
an account is
active Company name,
report title, and
system date
Account
description
(or name)
Account type
Account ID
(or number)
Figure 5-3C Chart of Accounts Report
If you were previously directed to save your work on the network, select the
problem from the scrolling menu and click OK. The system will retrieve your
les from your last session.
If you were previously directed to save your work on a oppy disk, insert the
oppy, select the corresponding problem from the scrolling menu and click
OK. The system will retrieve your les from the oppy disk.
4)0 Search the Help Index to learn about the account types.
Chapter 5 51
Name Date Class
Peachtree Guide
Follow the instructions provided below to print a Chart of Accounts
report for Hot Suds Car Wash. You will use the general ledger accounts $/ 9/5 (!6%
to enter transactions in the next chapter.
! 15%34)/.
INSTRUCTIONS Q. What is the purpose of
the Filter Criteria includes:
Begin a Session
... section at the top of the
Step 1 Open the Glencoe Accounting: Electronic Learning Center soft- Chart of Accounts report?
ware and click on the Peachtree Complete Accounting A. Almost every report you
Software and Spreadsheet Applications icon. print with Peachtree includes
Step 2 Log onto the system by typing your user name and password. the report criteria at the top
Step 3 From the scrolling list of chapter problems, select the problem of the report. This informa-
set: Hot Suds Car Wash (Prob. 5-4). tion identies which lters
Step 4 Rename the company by adding your initials, e.g., Hot Suds (or options) are set for the
(Prob. 5-4: XXX). report. For example, you
Step 5 Set the system date to January 31, 2010. could choose to print a Chart
of Accounts with only the
Prepare a Report and Proof Your Work general ledger accounts that
Step 6 Print a Chart of Accounts report. have a balance. Or you could
choose to print only the asset
accounts. The information at
the top of the report reects
4)0 You can use the General Ledger Navigation Aid at the
any special options you may
have set. On some reports,
bottom of the Peachtree main window to access the the lter criteria may run past
General Ledger Reports including the Chart of Accounts. the edge of the page. The
content of the report is not
affected when this occurs.
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center soft-
ware and click on the Peachtree Complete Accounting
Software and Spreadsheet Applications icon.
Step 2 Log onto the system by typing your user name and password.
Step 3 From the scrolling list of chapter problems, select the problem
set: Kits & Pups Grooming (Prob. 5-5).
Step 4 Rename the company and set the system date to
January 31, 2010.
52 Chapter 5
Name Date Class
Peachtree Guide
Work the Accounting Problem
Step 5 Add the Advertising Expense general ledger account.
To add a new account:
Choose Chart of Accounts from the Maintain menu.
$/ 9/5 (!6%
! 15%34)/.
Q.
When you add a new
account or enter a transac-
tion using the Peachtree
Click in the Maintain Chart of Accounts window to view
those accounts already recorded for the company. software, is it necessary to
Type 501 in the Account ID eld and press Tab to move to manually save your work?
the next eld. A. Some applications, such
as a word processor or a
As you type an account number, Peachtree displays a list of spreadsheet program, require
the general ledger accounts and highlights the rst account that you choose to save your
that matches what you have entered. This feature is helpful if work by choosing the Save
you are entering an account number for an account you want option from the File menu
to change. Note: This feature may be disabled if your teacher or by clicking the Save but-
changed the Peachtree preferences. ton on a toolbar. Peachtree
does not require you to
manually choose to save
your work. It automatically
4)0 Press Tab to move to the next eld in a data entry win-
updates the company les
for you. However, you must
dow and press Shift + Tab to move to the previous eld. always be sure to properly
exit Peachtree to avoid losing
any data.
Type Advertising Expense in the Description eld.
Click the Account Type drop-down list and select Expenses,
since this account is an expense.
Review the information you just entered. (See Figure 5-5A.)
You do not have to complete any of the other elds shown in the
Maintain Chart of Accounts window. The account activity appears
in this window as a company uses the software to record its trans-
actions. You can also enter budget amounts, as you will learn in a
later chapter.
Chapter 5 53
Name Date Class
Peachtree Guide
Step 6 Add the remaining expense accounts shown below for Kits & Pups
Grooming.
Account No. Description Account Type
505 Equipment Repair Expense Expenses
510 Maintenance Expense Expenses
520 Rent Expense Expenses
530 Utilities Expense Expenses
Note: To edit an account description or account type, type the
account number and then change the account information. .OTES
Click to save the changes. If you type the wrong If you do not click
account number, type or select the account. Then click the New button, Peachtree
to remove it from the chart of accounts. does not clear the descrip-
tion eld for the next new
Step 7 Type the beginning balances for Cash in Bank ($15,000) and account. However, you can
Abe Shultz, Capital ($15,000). type over the account num-
ber and account description
To enter beginning balances: to enter a new account.
Click the Beginning Balances button in the Maintain
Chart of Accounts window.
Choose From 1/1/10 through 1/31/10 from the Select Period
window and click OK.
Type 15000 in the Cash in Bank eld.
Press Tab to the Abe Shultz, Capital eld and type 15000.
4)0 Unless your teacher changed the default Peachtree settings, the
software will convert any amount you type as a round number
into dollars and cents. For example, Peachtree will automatically
format the amount 15000 as $15,000.00. If the amount you type
includes cents, you must type a decimal point followed by the
correct number of cents.
54 Chapter 5
Name Date Class
Peachtree Guide
Step 8 Click to close the Maintain Chart of Accounts window.
Prepare a Report and Proof Your Work
Step 9 Print a Chart of Accounts report.
Step 10 Review the information shown on the report.
Step 11 If you notice an error, use the Chart of Accounts option in the
Maintain menu to edit or delete a general ledger account.
Analyze Your Work
Step 12 Complete the Analyze activity manually.
End the Session
Step 13 Click the Close Problem button in the Glencoe Smart Guide window
and select a save option as directed by your teacher. Click OK.
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center software
and click on the Peachtree Complete Accounting Software
and Spreadsheet Applications icon.
Step 2 Log onto the system by typing your user name and password.
Step 3 From the scrolling list of chapter problems, select the problem set:
Outback Guide Service (Prob. 5-6).
Step 4 Rename the company and set the system date to January 31, 2010.
Work the Accounting Problem
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 5 55
Name Date Class
Peachtree Guide
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center software
and click on the Peachtree Complete Accounting Software
and Spreadsheet Applications icon.
Step 2 Log onto the system by typing your user name and password.
Step 3 From the scrolling list of chapter problems, select the problem set:
Showbiz Video (Prob. 5-7).
Step 4 Rename the company and set the system date to January 31, 2010.
Work the Accounting Problem
Step 5 Review all of the accounts listed in your textbook for Showbiz Video.
Step 6 Determine the account type for each account.
Step 7 Add all of the new accounts.
56 Chapter 5
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Restore a QuickBooks Backup le.
2. Print a Chart of Accounts report.
3. Enter a new general ledger account.
4. Record a beginning balance for a general ledger account.
5. Explain the purpose of the account type setting.
6. Back up a QuickBooks le.
QuickBooks Guide
for an account.
INSTRUCTIONS
Begin a Session
Step 1 Launch the QuickBooks Pro 2005 software.
Step 2 Restore the Problem 5-5.QBB le by following the steps below.
From the File menu, select Restore. You can also click on the
Restore a backup le button in the No Company Open win-
dow if you do not have another company le open. The Restore
Company Backup window will be displayed. (See Figure 5-5A.)
Chapter 5 57
Name Date Class
Account
types
Account
pull-down
menu
Click the Account pull-down menu in the bottom left corner of the
Chart of Accounts window.
Choose New.
In the New Account window select Expense from the Type drop-
down list.
The account type identies the account category (e.g. Bank,
Account Receivable, Expense, etc). QuickBooks uses this informa-
tion to group accounts for nancial reports and to determine which
accounts are permanent and which are temporary when it closes an
accounting period.
Press Tab and type 501 in the Number eld.
4)0 Press Tab to move to the next eld in a data entry window and
press Shift + Tab to move to the previous eld.
58 Chapter 5
Name Date Class
Account
type Account
number
Account
name Allows you
to mark an
account as
inactive
QuickBooks Guide
Figure 5-5C The New Account window
the New Account window.
Step 5 Add the remaining expense accounts shown below for Kits & $/ 9/5 (!6%
Pups Grooming. ! 15%34)/.
Account No. Name Type Q. When you add a new
505 Equipment Repair Expense Expense account or enter a transac-
510 Maintenance Expense Expense tion using the QuickBooks
520 Rent Expense Expense software, is it necessary to
manually save your work?
530 Utilities Expense Expense
A. Some applications, such
Note: To edit an account description or opening balance, as a word processor or a
select the account to edit. Click the Account pull-down menu spreadsheet program, require
and choose Edit Account. Enter the correct information and that you choose to save your
click OK. work (for instance, by choos-
ing the Save option from the
Copyright by The McGraw-Hill Companies. All rights reserved.
Step 6 Type the opening balances for Cash in Bank ($15,000) and File menu, or by clicking the
Abe Shultz, Capital ($15,000). Save button on a toolbar).
QuickBooks does not require
To enter opening balances:
you to manually choose to
Select the Cash in Bank account. save your work. It automati-
Click the Account pull-down menu in the bottom left cally updates the company
corner of the Chart of Accounts window. les for you. However, you
Choose Edit Account. must always be sure to back
up your data when you exit
Press Tab to move to the Opening Balance eld and type
QuickBooks.
15000.
Chapter 5 59
Name Date Class
Opening
balance
QuickBooks Guide
Opening
balance date
Figure 5-5D The Edit Account window
Click .
Prepare a Report and Proof Your Work
Step 7 Print a Chart of Accounts report.
To print a Chart of Accounts report:
The Chart of Accounts window must be open. If it is not, select
Chart of Accounts from the Lists menu.
Choose Print List from the Account pull-down menu.
When the List Reports window appears, click .
When the Print List window appears, click .
Account
number
and name
Account
type
Figure 5-5E The Chart of Accounts report
Step 9 If you notice an error, select Chart of Accounts from the Lists
menu to edit/delete a general ledger account.
Analyze Your Work
Step 10 Complete the Analyze activity manually.
60 Chapter 5
Name Date Class
QuickBooks Guide
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 5 61
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 5-8 Completing the Accounting Equation
Complete the Spreadsheet
Step 1 Read the instructions for Problem 5-8 in your textbook. This problem
involves determining the missing amounts for the accounting equa-
tions given.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Management System by typing your user name and
password.
Step 5 Under the Problems and Tutorials tab, select template 5-8 from the
Chapter 5 drop-down list. The template should look like the one
shown below.
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 The rst equation is completed for you. Notice that Assets ($64,400)
equal Liabilities ($8,200) + Owners Capital ($56,300) Withdrawals
($500) + Revenue ($10,000) Expenses ($9,600).
Step 8 To complete the second equation, type the amounts given in
your textbook for Assets, Liabilities, Owners Capital, Withdrawals,
and Revenue in the appropriate cells. To calculate the amount
for Expenses, add Liabilities ($525) + Owners Capital ($18,800)
Withdrawals ($1,200) + Revenue ($12,100) to get a total of $30,225.
Subtract Assets ($22,150) from this amount to get $8,075, the missing
amount for Expenses. Type 8075 in cell L12.
62 Chapter 5
Name Date Class
Step 9 To check your work, look at cells L23 and L25. Total Assets should
equal Total Liabilities + Owners Capital Withdrawals + Revenue
Expenses.
Step 10 Complete the remaining equations in Problem 5-8 by typing the
appropriate data from your text into the spreadsheet template and
calculating the missing amounts.
Check the totals at the bottom of the spreadsheet after the
amounts have been entered to make sure they are in balance.
If the totals do not balance, check your work to nd the error.
Step 11 Save the spreadsheet using the Save option from the File menu. You
should accept the default location for the save, as this is handled by
the management system.
Step 12 Print the completed spreadsheet.
Step 13 Exit the spreadsheet program.
Step 14 In the Close Options window, select the location where you would like
to save your work.
Step 15 Complete the Analyze activity from your textbook for this problem.
What-If Analysis
Spreadsheet Guide
4)0 Use row 11 of the spreadsheet template to answer this question.
Type the amounts for Liabilities, Owners Capital, Withdrawals,
Revenue, and Expenses. Note that the amount for Assets is
automatically computed for you! This is because cell B11
contains a formula that automatically calculates the missing
amount. Formulas are very useful in spreadsheets, saving time
and improving accuracy.
Chapter 5 63
Name
64 Chapter 5
Notes
Date
Class
CHAPTER
Study Guide
6 Recording Transactions in a General Journal
Section Assessment
Section 1 Read Section 1 on pages 132134 and complete the following exercises on page 135.
Reinforce the Main Idea
Do the Math
Problem 6-1 Analyzing a Source Document
Section 2 Read Section 2 on pages 136148 and complete the following exercises on page 149.
Reinforce the Main Idea
Do the Math
Problem 6-2 Recording Business Transactions
Problem 6-3 Analyzing Transactions
Chapter Assessment
Summary Review the Chapter 6 Summary on pages 150151 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 152 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 153 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 6 in your textbook.
Problem 6-4 Recording General Journal Transactions
Problem 6-5 Recording General Journal Transactions
Problem 6-6 Recording General Journal Transactions
Problem 6-7 Recording General Journal Transactions
Challenge Problem Problem 6-8 Recording General Journal Transactions
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 6 65
Name Date Class
1.
2.
3.
4.
5.
6.
7.
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
66 Chapter 6
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Copyright by The McGraw-Hill Companies. All rights reserved.
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
Analyze:
Chapter 6 67
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
Analyze:
68 Chapter 6
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
Copyright by The McGraw-Hill Companies. All rights reserved.
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
Analyze:
Chapter 6 69
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
70 Chapter 6
Name Date Class
Dollars Cents
Total 13,785 00
Less this check 750 00
$ 600.00 No. 1251 Balance carried forward 13,035 00
Date January 7 20
To New Media Suppliers
For Down payment on account
January 15 20
Total 14,385 00 RECEIVED FROM Cash Sales $ 5,600.00
Less this check 600 00
Five thousand six hundred and 00/100 DOLLARS
Balance carried forward 13,785 00
FOR VCR Rentals $4,400.00 + Video Tape Rentals $1,200.00
Chapter 6 71
Name Date Class
Dollars Cents
Total 18,635 00
Less this check 100 00
Balance carried forward 18,535 00
Dollars Cents
Total 18,535 00
Less this check 1,000 00
Balance carried forward 17,535 00
72 Chapter 6
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
Copyright by The McGraw-Hill Companies. All rights reserved.
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
Analyze:
Chapter 6 73
Name
74 Chapter 6
Notes
Date
Class
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Record and post a general journal entry.
2. Print a General Journal report.
3. Edit a general journal entry.
4. Print a General Ledger report.
5. Continue a problem from a previous session.
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center soft-
ware and click on the Peachtree Complete Accounting
$/ 9/5 (!6%
! 15%34)/.
Q.
Are the steps to enter a
general journal transaction
using Peachtree similar to the
Software and Spreadsheet Applications icon.
steps that you follow for a
Step 2 Log onto the system by typing your user name and password.
manual system?
Step 3 From the scrolling list of chapter problems, select the problem
set for Wilderness Rentals (Prob. 6-4). A. Yes, the steps you follow
to manually record a general
Step 4 If you have not already done so, follow these steps to rename
journal entry are very similar
the company by adding your initials, e.g., Wilderness to the steps required to
(Prob. 6-4: XXX): record a general journal entry
Select Company Information from the Maintain menu. using Peachtree. For both
Review the information in the Maintain Company systems, you must enter a
transaction date, source
Information window. (See Figure 6-4A.)
document reference, account
Click in the Company Name eld.
Copyright by The McGraw-Hill Companies. All rights reserved.
Company .OTES
Name Using the Company
Information window, you
can also enter or change
a companys address,
telephone numbers, tax
ID numbers, form of busi-
Form of ness (sole proprietorship,
Business corporation, partnership,
S corporation, or limited
Posting liability company), and
Method posting method (real-time
or batch).
Chapter 6 75
Peachtree Guide
Name Date Class
4)0 You can save time by typing just the day in a date eld.
Peachtree will automatically show the full date (e.g., Jan. 1, 2010).
Type Check 310 in the Reference eld and then press Tab twice to
move to the next eld.
Every time you type or enter information in a eld, you must
press Tab or Enter to record the information. You can also
76 Chapter 6
Peachtree Guide
Name Date Class
4)0 Unless your teacher has changed the default Peachtree settings,
you do not need to include the decimal point when you enter
an amount. Peachtree will automatically format the amount
as $270.00.
Account decreased
number
Account
name Credit amount
Out of Balance
amount must be
zero (0.00) to post
an entry
Chapter 6 77
Peachtree Guide
Name Date Class
78 Chapter 6
Peachtree Guide
Name Date Class
Prints
the Displays selected
selected report on the
report screen
Report
description
General Ledger
reports
Report
area
Figure 6-4C Select a Report Window With the General Ledger Reports
Prints the
current report
Closes
report Company name,
window report title, and
period
Beginning
balance entry
Copyright by The McGraw-Hill Companies. All rights reserved.
Partial list
of entries
Scrolls through
the report
Step 12 If there are any corrections needed, follow these instructions to edit
or delete a transaction.
Choose General Journal Entry from the Tasks menu to display
the General Journal Entry window.
Click to display a list of the general journal entries.
(See Figure 6-4E.)
Chapter 6 79
Peachtree Guide
Name Date Class
Select the transaction that you want to edit or delete and click
the OK button.
To edit a transaction, simply make the necessary changes to the
date, reference, account numbers, descriptions, and amounts. Post
the transaction to record the change.
To delete a transaction, click , and then conrm that you
want to remove the transaction.
Select another entry to edit, or close the General Journal window if
you are nished making changes.
Click OK to
display the
highlighted
entry List of general
journal entries
in the current
period
Step 13 Print a revised General Journal report if you have changed or deleted
any of the transactions.
Analyze Your Work
To complete the Analyze activity, print a General Ledger report.
80 Chapter 6
Peachtree Guide
Name Date Class
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center .OTES
software and click on the Peachtree Complete Accounting
Software and Spreadsheet Applications icon. Refer to Problem 6-4
Step 2 Log onto the system by typing your user name and password. if you need instructions on
Step 3 From the scrolling list of chapter problems, select the problem how to begin a session.
set for Hot Suds Car Wash (Prob. 6-5).
Step 4 Rename the company by adding your initials, e.g., Hot Suds
(Prob. 6-5: XXX).
Step 5 Set the system date to January 31, 2010.
Work the Accounting Problem
Step 6 Review the transactions shown in your textbook for Hot Suds Car
Wash.
Step 7 Record all of the transactions using the General Journal Entry
option.
Copyright by The McGraw-Hill Companies. All rights reserved.
4)0 Remember to proof each general journal entry before you post
it. Check the account numbers, descriptions, and amounts.
Step 8 Close the General Journal Entry window after you have nished
recording the transactions.
Prepare a Report and Proof Your Work
Step 9 Print a General Journal report.
Step 10 Proof your work. Make any needed corrections, and print a revised
General Journal report, if necessary.
Chapter 6 81
Peachtree Guide
Name Date Class
INSTRUCTIONS
Begin a Session
Step 1 Begin the session, and select the problem set for Kits & Pups .OTES
Grooming (Prob. 6-6).
Refer to Problem 6-4
Step 2 Rename the company, and set the system date to if you need instructions on
January 31, 2010. how to begin a session.
Work the Accounting Problem
Step 3 Record all of the transactions.
82 Chapter 6
Peachtree Guide
Name Date Class
INSTRUCTIONS
Begin a Session
Step 1 Begin the session, and select the problem set for Outback Guide
Service (Prob. 6-7).
Step 2 Rename the company, and set the system date to January 31, 2010.
Work the Accounting Problem
Step 3 Record all of the transactions.
The General Journal Entry window can accommodate multi-part
transactions such as the January 1 transaction, which includes ve
partsfour debits and one credit. (See Figure 6-7A.)
What should you do if you accidentally omit a part of a multi-part
entry? First, select the line just below where you want to insert the
omitted part of the entry. Next, click , then to insert a
blank line in the entry. Finally, enter the missing part.
If you type a line in an entry twice, highlight the line you
want to delete, and click , then . Peachtree removes the
line from the entry.
Inserts a line
in an entry
Deletes a line
in an entry
Copyright by The McGraw-Hill Companies. All rights reserved.
Partial
multi-
part
entry
You can re-size the GJ
window to view more
lines in an entry
Chapter 6 83
Peachtree Guide
Name Date Class
INSTRUCTIONS
Begin a Session
Step 1 Begin the session, and select the problem set for Showbiz Video
(Prob. 6-8).
Step 2 Rename the company, and set the system date to January 31, 2010.
Work the Accounting Problem
Step 3 Record all of the transactions.
Prepare a Report and Proof Your Work
Step 4 Print a General Journal report.
Step 5 Proof your work. Make any needed corrections, and print a revised
General Journal report.
Analyze Your Work
Step 6 Complete the Analyze activity.
End the Session
Step 7 Click the Close Problem button in the Glencoe Smart Guide window,
and select a save option as directed by your teacher.
Is there a way to turn off the automatic drop-down lists and the automatic eld
completion features?
As you type in an account eld, Peachtree will show the accounts in a drop-down list
and will automatically attempt to complete the eld for you. Choose Global from
the Options menu and then change the Smart Data Entry options in the
General tab to enable or disable these features.
84 Chapter 6
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Record and post a general journal entry.
2. Print a Journal report.
3. Edit a general journal entry.
4. Print a General Ledger report.
Review the accounts and the transactions listed in your textbook for
Wilderness Rentals. You will record these transactions using the Make $/ 9/5 (!6%
General Journal Entries option in the Company menu.
! 15%34)/.
QuickBooks Guide
INSTRUCTIONS Q. Are the steps to enter a
Begin a Session general journal transaction
using QuickBooks similar to
Step 1 Launch the QuickBooks Pro 2005 software. the steps that you follow for
Step 2 Restore the Problem 6-4.QBB le. a manual system?
Work the Accounting Problem A. Yes, the steps you follow
to manually record a general
The instructions in this section explain how to enter and post general
journal transaction are very
journal transactions using QuickBooks. similar to those used in
Step 3 Review the transactions for Wilderness Rentals shown in QuickBooks. For both systems,
your textbook. you must enter a transaction
Step 4 Enter the transaction for January 1. date, source document
reference, account numbers,
January 1, Wrote Check 310 for the part-time descriptions, and debit or credit
secretarys salary, $270. amounts. The QuickBooks
data entry window even looks
To enter the general journal transaction: like a manual journal.
Select Make General Journal Entries from the
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 6 85
Name Date Class
4)0 You can save time by entering the two-digit value for the month,
for the day, and for the year in the Date eld (e.g., 010210).
QuickBooks will automatically show the full date.
Type Check 310 in the Entry No. eld and then press Tab to move
to the next eld.
Every time you type or enter information into a eld, you must
press Tab to record the information. You can also use this key to
move from eld to eld. Press Shift+Tab to move backwards.
Type 520, the account number for Salaries Expense, in the rst
GL Account eld, and press Tab to record it.
As you type an account number, QuickBooks displays the rst
general ledger account that matches the rst digit entered, and will
continue displaying accounts until it has found the rst account
that matches what you have entered. If you do not know the
QuickBooks Guide
account number, you can click the down arrow and scroll through
the list of accounts until you locate the desired account. For
example, what if you did not know the Salaries Expense account
number? You do know, however, that this account is an expense
account and that expense accounts begin with the digit 5. When
you type a 5, QuickBooks displays the expense accounts. From this
point, you can scroll through the list of expense accounts to locate
the account you need.
Type 270 in the Debit eld to record the debit to Salaries
Expense.
4)0 If you enter the amount 270 without a decimal point, the pro-
gram will automatically format the amount as $270.00.
86 Chapter 6
Name Date Class
Date
Source document
reference
Account
number
and
name
Debit
amount
Credit
amount
QuickBooks Guide
Figure 6-4A Completed General Journal Entry (January 1, Check 310)
Chapter 6 87
Name Date Class
Step 6 Close the Make General Journal Entries window using the button
on the top right corner of your screen, if your window is still open.
Prepare a Report and Proof Your Work
After you enter the transactions, the next step is to print a report and proof your
work. This section explains how to print a Journal report. You will also learn how to
edit a general journal entry.
Step 7 Print a Journal report.
To print a Journal report:
Select Accountant & Taxes from the Reports menu.
QuickBooks Guide
Accountant &
Taxes reports
88 Chapter 6
Name Date Class
Closes
report
Prints window
the
current Company
report name,
report title
Report and period
period
dates Scrolls
through
the
report
Partial list
of entries
QuickBooks Guide
Figure 6-4C The Journal Report
4)0 To reduce the width of the printed report, you can select the
Fit report to option in the Print Reports Settings window.
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 6 89
Name Date Class
Step 9 If there are any corrections needed, follow these instructions to edit or
delete a transaction.
Select Make General Journal Entries from the Company
menu.
Click the or buttons to move backward or
forward in the window to display the transaction that you want to
edit or delete.
To edit a transaction, simply make the necessary changes to the
date, entry no., account numbers, descriptions, or amounts.
Click to save the changes.
To delete a transaction, select Delete General Journal from the
Edit menu.
When the Delete Transaction warning box appears, click
.
Select another entry to edit, or close the Make General Journal
Entries window if you are nished making changes.
QuickBooks Guide
Step 10 Print a revised Journal report if you changed or deleted any of the
transactions.
Analyze Your Work
Step 11 Select Accountant & Taxes from the Reports menu. Select
General Ledger from the Accountant & Taxes submenu.
Step 12 Click the button.
Step 13 Type 01/01/10 in the From eld and 01/31/10 in To eld.
Step 14 In the Columns section, scroll down and select Debit and Credit. Click
OK.
Step 15 Locate the Cash in Bank account on the General Ledger report.
How much cash was deducted from the Cash in Bank account in
January?
Step 16 Click the button to close the report. When prompted to memorize
the report, click No.
90 Chapter 6
Name Date Class
INSTRUCTIONS
Begin a Session
Step 1 Launch the QuickBooks 2005 software.
Step 2 Restore the Problem 6-5.QBB le.
Work the Accounting Problem
Step 3 Review the transactions shown in your textbook for Hot Suds Car
Wash.
Step 4 Record all of the transactions using the Make General Journal
Entries option and 2010 as the year.
4)0
QuickBooks Guide
Remember to proof each general journal entry before you post
it. Verify the account numbers, descriptions, and amounts.
Step 5 Close the Make General Journal Entries window after you have n-
ished recording the transactions.
Prepare a Report and Proof Your Work
Step 6 Print a Journal report.
Step 7 Proof your work. Make any needed corrections, and print a revised
Journal report, if necessary.
Chapter 6 91
Name Date Class
FAQs
How do you correct a general journal entry?
You can edit or delete a general journal entry at any time, unless you have closed
the current period. To make a change, select Make General Journal Entries
from the Company menu. Click the Previous or Next button until you locate the
entry you want to update. Make the changes, and click Save & Close. QuickBooks
automatically applies the corrections. To delete an entry, select Delete General
Journal from the Edit menu when the transaction is displayed in the Make
General Journal Entries window.
QuickBooks Guide
Is there a way to turn off the automatic drop-down lists and the automatic eld
completion features?
No, QuickBooks will not allow you to turn these features off. They have been added
to the program for convenience and ease of use.
92 Chapter 6
Name Date Class
7
Posting Journal Entries
CHAPTER to General Ledger Accounts
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 164166 and complete the following exercises on page 167.
Reinforce the Main Idea
Do the Math
Problem 7-1 Opening Ledger Accounts
Section 2 Read Section 2 on pages 168174 and complete the following exercises on page 175.
Reinforce the Main Idea
Do the Math
Problem 7-2 Posting from the General Journal to the Ledger
Section 3 Read Section 3 on pages 177180 and complete the following exercises on page 181.
Reinforce the Main Idea
Do the Math
Problem 7-3 Analyzing a Source Document
Problem 7-4 Recording and Posting a Correcting Entry
Chapter Assessment
Summary Review the Chapter 7 Summary on pages 182183 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 184 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 185 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 7 in your textbook.
Problem 7-5 Posting General Journal Transactions
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 7 93
Name Date Class
GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
94 Chapter 7
Name Date Class
1 20 1
4 Memorandum 101 4
5 5
6 6
7 7
Chapter 7 95
Name Date Class
FUNTIME MEMORANDUM 47
AMUSEMENT ARCADE
1 20 1
4 Check 8099 4
5 5
6 6
7 7
8 8
9 9
20
May 1 Balance 7 0 0 00
20
May 1 Balance 3 0 0 0 00
10 G6 1 5 0 0 00 4 5 0 0 00
96 Chapter 7
Name Date Class
1 20 1
4 Check 1903 4
5 5
6 6
7 7
8 8
9 9
20
July 1 Balance 2 6 0 0 00
20
July 1 Balance 1 5 0 0 0 00
Copyright by The McGraw-Hill Companies. All rights reserved.
3 G5 3 0 0 00 1 5 3 0 0 00
Chapter 7 97
Name Date Class
1 20 1
4 Memorandum 21 4
5 3 Ofce Equipment 3 0 0 0 00 5
7 Invoice 500 7
8 4 Camping Equipment 2 5 0 0 00 8
10 Invoice 318 10
11 6 Ofce Equipment 1 0 0 00 11
13 Memorandum 22 13
14 8 Cash in Bank 6 0 0 0 00 14
16 Receipt 226 16
18 Cash in Bank 1 5 0 0 00 18
19 Check 461 19
24 Cash in Bank 2 0 0 0 00 24
25 Check 462 25
27 Cash in Bank 1 2 0 0 00 27
28 Check 463 28
29 28 Cash in Bank 1 0 0 0 00 29
31 Receipt 227 31
35 30 Advertising Expense 3 0 0 00 35
36 Cash in Bank 3 0 0 00 36
37 Check 464 37
98 Chapter 7
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Chapter 7 99
Name Date Class
Analyze:
100 Chapter 7
Name Date Class
20
Mar. 1 Balance 1 5 0 0 0 00
15 G1 4 0 0 0 00 1 9 0 0 0 00
31 G2 2 0 0 0 00 1 7 0 0 0 00
20
Mar. 1 Balance 2 0 0 0 00
12 G1 1 0 0 0 00 1 0 0 0 00
20
Mar. 1 Balance 1 5 0 0 00
17 G1 5 0 0 00 2 0 0 0 00
20
Copyright by The McGraw-Hill Companies. All rights reserved.
Mar. 1 Balance 2 0 0 0 0 00
20
Mar. 1 Balance 1 0 0 0 00
31 G2 5 0 0 00 5 0 0 00
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Mar. 1 Balance 4 0 0 0 0 00
Chapter 7 101
Name Date Class
20
Mar. 1 Balance 2 0 0 0 00
31 G2 2 0 0 0 00 4 0 0 0 00
20
Mar. 1 Balance 4 0 0 0 00
31 G2 3 5 0 0 00 7 5 0 0 00
20
Mar. 1 Balance 5 0 0 00
20
Mar. 1 Balance 1 0 0 0 00
31 G2 2 0 0 00 1 2 0 0 00
20
Mar. 1 Balance 6 0 0 0 00
15 G1 5 0 0 00 6 5 0 0 00
102 Chapter 7
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
Analyze:
Problem 7-6 (concluded)
Date
Class
Chapter 7 103
Name Date Class
GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
104 Chapter 7
Name Date Class
Chapter 7 105
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106 Chapter 7
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
Analyze:
Problem 7-7 (concluded)
Date
Class
Chapter 7 107
Name Date Class
Instructions: Use the following source documents to record the transactions for
this problem.
MEMORANDUM 35 RECEIPT
Outback Guide Service Outback Guide Service No. 311
705 Fernhill Road 705 Fernhill Road
Encinitas, CA 92024 Encinitas, CA 92024
TO: Accounting Clerk March 2 20
FROM: Juanita Ortega RECEIVED FROM Chad Schmidt $ 80.00
DATE: March 1, 20
SUBJECT: Investment in business Eighty and 00/100 DOLLARS
I have invested $20,000 in cash and rafting equipment valued at FOR Guide Service
$5,000 in the business. Please record the journal entry.
RECEIVED BY Juanita Ortega
RECEIPT
Outback Guide Service No. 312
705 Fernhill Road
Encinitas, CA 92024
PEAK EQUIPMENT INC. INVOICE NO. 101 March 3 20
402 Industry Blvd. DATE: March 3, 20 RECEIVED FROM Jason & Brittany Kelley $ 135.00
San Diego, CA 92122
ORDER NO.:
One hundred thirty-five and 00/100 DOLLARS
Outback Guide Service SHIPPED BY: Speedy Delivery
TO 705 Fernhill Road TERMS: Payable in 30 days
Encinitas, CA 92024 FOR Guide Service
RECEIPT
Outback Guide Service No. 313
705 Fernhill Road
Encinitas, CA 92024
March 5 20
RECEIVED FROM Clancey McMichael $ 80.00
Eighty and 00/100 DOLLARS
Premier Processors INVOICE NO. 616
5775 Lemon Grove Drive DATE: March 5, 20 FOR Guide Service
San Diego, CA 92107
ORDER NO.:
RECEIVED BY Juanita Ortega
108 Chapter 7
Name Date Class
400.00
RECEIPT
$ No. 652
DateMarch 9 20 Outback Guide Service No. 316
To Daily Courier 705 Fernhill Road
For Ad Encinitas, CA 92024
March 22 20
Dollars Cents
RECEIVED FROM Podaski Systems Inc. $ 900.00
Balance brought forward 0 00
Add deposits 2/1 20,000 00 Nine hundred and 00/100 DOLLARS
2/7 700 00
FOR Payment on account
Total 20,700 00
Less this check 400 00
RECEIVED BY Juanita Ortega
Balance carried forward 20,300 00
Dollars Cents
$ 800.00 No. 653
DateMarch 15 20
Balance brought forward 18,500 00
To Cash Add deposits
For Personal use
Total
Chapter 7 109
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110 Chapter 7
Name Date Class
Chapter 7 111
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112 Chapter 7
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
Analyze:
Problem 7-8 (concluded)
Date
Class
Chapter 7 113
Name Date Class
1 20 1
4 Check 1401 4
7 Receipt 602 7
10 Check 1402 10
13 Check 1403 13
16 Check 1404 16
19 Receipt 603 19
22 Receipt 604 22
20 Cash in Bank 101 1 0 0 00
25 Receipt 605 25
28 Check 1405 28
31 Memorandum 40 31
34 Receipt 606 34
35 35
36 36
114 Chapter 7
Name Date Class
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Mar. 1 Balance 9 8 5 5 00
3 G21 1 2 5 00 9 7 3 0 00
5 G21 4 0 0 00 1 0 1 3 0 00
7 G21 2 0 0 00 9 9 3 0 00
9 G21 5 0 0 00 9 4 3 0 00
13 G21 1 2 0 0 00 8 2 3 0 00
17 G21 2 0 0 0 00 1 0 2 3 0 00
19 G21 7 5 00 1 0 3 0 5 00
20 G21 1 0 0 00 1 0 4 0 5 00
24 G21 7 5 00 1 0 3 3 0 00
27 G21 3 0 0 0 00 1 3 3 3 0 00
29 G21 1 0 0 0 00 1 4 3 3 0 00
20
Mar. 1 Balance 3 0 0 00
19 G21 5 7 00 2 4 3 00
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Mar. 1 Balance 1 2 0 00
20
Mar. 1 Balance 1 5 0 0 00
3 G21 1 2 5 00 1 6 2 5 00
9 G21 5 0 0 00 2 1 2 5 00
Chapter 7 115
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20
Mar. 1 Balance 2 2 0 0 00
20
Mar. 1 Balance 1 3 0 0 0 00
13 G21 1 2 0 0 00 1 1 8 0 0 00
17 G21 2 0 0 0 00 1 3 8 0 0 00
20
Mar. 27 G21 3 0 0 0 00 3 0 0 0 00
20
Mar. 29 G21 1 0 0 0 00 1 0 0 0 00
116 Chapter 7
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13 13
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Copyright by The McGraw-Hill Companies. All rights reserved.
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Analyze:
Chapter 7 117
Name
118 Chapter 7
Notes
Date
Class
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Print a General Ledger report.
2. Print a General Ledger Trial Balance report.
3. Make corrections to General Journal entries.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Select the problem set for Wilderness Rentals (Prob. 7-5). ! 15%34)/.
Step 2 Rename the company and set the system date to March 31, 2010. Q. Do you have to post
Prepare a Report and Proof Your Work general journal transactions
to the general ledger?
Step 3 Print a General Ledger report.
Step 4 Review the information shown on the report.
A. No. Peachtree automati-
cally updates the general ledger
A partial General Ledger report is shown in Figure 7-5A. accounts every time you record
As you can see, the General Ledger report is very similar to a (save) a general journal entry.
General Ledger report you have learned how to prepare A separate step to post the
manually. One difference, however, is that Peachtree does not transactions is not required.
show a running balance after each posting. For each line item,
Peachtree shows the transaction reference (e.g., Memo 21) and
the journal (e.g., GENJ) from which the entry was posted. Unlike
a manual General Ledger report, the Peachtree report includes the
current period change (debits and credits) for each account.
Account
number Beginning
and balance
Copyright by The McGraw-Hill Companies. All rights reserved.
name (Nothing
appears if
balance
Posting equals
date, zero [0.00])
reference,
and
amount Current
period
Journal change
reference
(GENJ= Ending
General account
Journal) balance
Figure 7-5A General Ledger Report
4)0 Explore the Help Index. Search for information on how to change
the options for a General Ledger report.
120 Chapter 7
Name Date Class
Peachtree Guide
Problem 7-7 Journalizing and Posting Business Transactions
INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Kits & Pups Grooming (Prob. 7-7).
Step 2 Rename the company and set the system date to March 31, 2010.
Work the Accounting Problem
Step 3 Record all of the March transactions using the General Journal
Entry task option.
Prepare a Report and Proof Your Work
Step 4 Print a General Journal report and proof your work.
Step 5 Print a General Ledger report that is summarized by transaction.
Sometimes you may not need all of the information on a standard
(default) report. Summary reports show the critical information, but
leave out some of the detailed parts.
To print a summary General Ledger report:
Choose General Ledger from the Reports menu.
Open the General Ledger report by double-clicking it.
Click to change the report options.
In the Filter tab, choose Summary by Transaction from the
Report Format drop-down list. Click OK to save changes.
Click .
Click OK to print the summary report.
Step 6 Print a General Ledger Trial Balance report.
Analyze Your Work
.OTES
Peachtree may some-
Step 7 Complete the Analyze activity.
times shorten certain elds
End the Session on a report depending on
the space available.
Step 8 Click the Close Problem button in the Glencoe Smart Guide
Copyright by The McGraw-Hill Companies. All rights reserved.
window.
Step 9 If your teacher has asked you to check your solution, select
Check my answer to this problem. Click OK and review, print,
and close the report on your screen.
Step 10 Click the Close Problem button. In the Close Options window,
select a save option as directed by your teacher. Click OK.
Chapter 7 121
Name Date Class
Peachtree Guide
122 Chapter 7
Name Date Class
Peachtree Guide
Problem 7-9 Recording and Posting Correcting Entries
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Select the problem set for Showbiz Video (Prob. 7-9). ! 15%34)/.
Step 2 Rename the company and set the system date to Q. What is the best method
March 31, 2010. to make a correction to a
Work the Accounting Problem general journal entry?
Step 3 Review the auditors memo shown in your textbook. A. In a manual system, you
were taught how to make a
Step 4 Correct the general journal transactions based on the auditors
correcting entry to correct a
comments. general journal entry error.
Use the General Journal Entry option in the Tasks menu Using Peachtree, you can
make a correcting entry or
to display the General Journal Entry window. Click to you can edit an entry to cor-
display a list of the general journal entries. Select an entry rect it. Although changing
to edit, make your changes, and then post the corrected entry. an entry is often easier and
faster than making a new
entry, you will not have an
IMPORTANT: The posting errors (March 7 and March 19) do audit trail that shows any cor-
not apply when you complete this problem with Peachtree. rections you may have made.
These errors, noted in the auditors memo, deal with errors Unless your teacher instructs
in the posting process to the general ledger. Since Peachtree you to make correcting
automatically posts entries, these errors are not applicable. entries, follow the instructions
in this workbook to edit an
Prepare a Report and Proof Your Work entry if you identify a mistake.
Step 5 Print a General Journal report and proof your work.
Step 6 Print a General Ledger report.
Analyze Your Work
Step 7 Complete the Analyze activity.
End the Session
Step 8 Click the Close Problem button in the Glencoe Smart Guide win-
dow.
Step 9 If your teacher has asked you to check your solution, select Check
Copyright by The McGraw-Hill Companies. All rights reserved.
Does Peachtree include any features that let you keep track
of daily taskspay a vendor, place an ad in the local news-
paper, or contact a client? On a separate sheet of paper,
explain your answer.
Chapter 7 123
Name
124 Chapter 7
Notes
Date
Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Print a General Ledger report.
2. Print a Trial Balance report.
3. Make corrections to General Journal entries.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Launch the QuickBooks Pro 2005 software. ! 15%34)/.
Step 2 Restore Problem 7-5.QBB le. Q. Do you have to post
QuickBooks Guide
Prepare a Report and Proof Your Work general journal transactions
to the general ledger?
Step 3 Print a General Ledger report following these steps.
A. No. QuickBooks automat-
To print a General Ledger report: ically updates the general led-
ger accounts every time you
Choose Accountant & Taxes from the Reports menu. record (Save & Close or Save &
Select General Ledger. New) a general journal entry.
Press Tab and type 03/01/2010 in the From eld. A separate step to post the
Press Tab and type 03/31/2010 in the To eld. transaction is not required.
Press Tab to display the entire report.
Click to print the General Ledger report.
To make your General Ledger report appear similar to the one
you prepared manually, follow these steps.
To modify a General Ledger report:
Chapter 7 125
Name Date Class
Scroll down
to check or
uncheck the
items you
want to display
on a report
QuickBooks Guide
Step 4 Review the information shown on the report. (See Figure 7-5B.)
A partial General Ledger report is shown in Figure 7-5B. As you
can see, the General Ledger report is very similar to a General Ledger
report you have learned to prepare manually. QuickBooks maintains a
running balance after each entry. The Num column contains the ref-
erence (e.g., Memo 21) for each transaction entered. The Type column
shows the type of transaction posted.
Modify
Report
126 Chapter 7
Name Date Class
QuickBooks Guide
Step 1 Launch the QuickBooks Pro 2005 software.
Step 2 Restore Problem 7-6.QBB le.
Prepare a Report and Proof Your Work
Step 3 Print a Trial Balance report following these steps.
Choose Accountant & Taxes from the Reports menu.
Select Trial Balance.
Press Tab and type 03/01/2010 in the From eld.
Press Tab and type 03/31/2010 in the To eld.
Press Tab to display the entire report.
Click to print the Trial Balance report.
Step 4 Review the information shown on the report.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Copyright by The McGraw-Hill Companies. All rights reserved.
Step 6 It is recommended that you back up your work for this session.
Chapter 7 127
Name Date Class
4)0
QuickBooks Guide
128 Chapter 7
Name Date Class
ASSETS
101 Cash in Bank
105 Accounts ReceivableAndrew Hospital
110 Accounts ReceivableIndiana Trucking
115 Accounts ReceivableSunshine Products
130 Ofce Supplies
135 Ofce Equipment
140 Ofce Furniture
145 Web Server
LIABILITIES
205 Accounts PayableComputer Specialists Inc.
210 Accounts PayableOfce Systems
215 Accounts PayableService Plus Software Inc.
OWNERS EQUITY
301 Jack Hines, Capital
305 Jack Hines, Withdrawals
REVENUE
401 Web Service Fees
EXPENSES
505 Membership Expense
506 Telecommunications Expense
507 Rent Expense
Copyright by The McGraw-Hill Companies. All rights reserved.
CCW
Canyon.com Web Sites
CCW
First Bank
MEMO Office supplies Jack Hines
322271779 0710613 101
CCW
717 E. Colorado Blvd., #1 90-7177
3222 717 E. Colorado Blvd., #1 No. 102
Pasadena, CA 90017 Pasadena, CA 90017
DATE May 14 20
PAY TO THE May 19 20
ORDER OF DWP $ 118.00
RECEIVED FROM Intercom Inc. $ 4,000.00
One hundred eighteen and 00/100 DOLLARS
Four thousand and 00/100 DOLLARS
First Bank
FOR Web site maintenance for one year
MEMO Electric bill Jack Hines
322271779 0710613 102 RECEIVED BY Jack Hines
CCW
717 E. Colorado Blvd., #1 90-7177 INVOICE NO. 103
3222 717 E. Colorado Blvd., #1
Pasadena, CA 90017 DATE: May 20, 20
DATE May 15 20 Pasadena, CA 90017
ORDER NO.:
PAY TO THE Indiana Trucking SHIPPED BY:
ORDER OF Jack Hines $ 2,500.00 TO 28111 Soledad Canyon TERMS:
Newhall, CA 90011
Two thousand five hundred and 00/100 DOLLARS
DATE May 18 20
717 E. Colorado Blvd., #1 90-7177
PAY TO THE
ORDER OF Office Mart $ 275.00 Pasadena, CA 90017 3222
DATE May 22 20
Two hundred seventy-five and 00/100 DOLLARS PAY TO THE
ORDER OF Telecom $ 4,900.00
First Bank
Filing cabinet Jack Hines Four thousand nine hundred and 00/100 DOLLARS
MEMO
CCW
717 E. Colorado Blvd., #1 90-7177 717 E. Colorado Blvd., #1 90-7177
3222 3222
Pasadena, CA 90017 Pasadena, CA 90017
DATE May 22 20 DATE May 30 20
PAY TO THE PAY TO THE
ORDER OF Service Plus Software Inc. $ 3,333.00 ORDER OF Property Management $ 750.00
Three thousand three hundred thirty-three and 00/100 DOLLARS Seven hundred fifty and 00/100 DOLLARS
CCW
Canyon.com Web Sites
CCW
First Bank
MEMO Membership dues Jack Hines
322271779 0710613 108
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Copyright by The McGraw-Hill Companies. All rights reserved.
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Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
Mini Practice Set 1
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center software.
Step 2 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 3 Log onto the Accounting Management System by typing your user
name and password.
Step 4 Under the Problems & Tutorials tab, select the problem set for
Canyon.com Web Sites (MP-1).
Step 5 Rename the company by adding your initials, e.g., Canyon
(MP-1: XXX).
Step 6 Set the system date to May 31, 2010.
Work the Accounting Problem
Step 7 Review the transactions shown in your textbook for Canyon.com
Web Sites.
Step 8 Record all of the transactions using the General Journal
Entry option.
Copyright by The McGraw-Hill Companies. All rights reserved.
4)0 Proof each general journal entry before you post it. Check the
account numbers, descriptions, and amounts.
Why will Peachtree not allow you to access the General Journal Entry window
directly from a customized General Journal report?
When you display the standard (default) General Journal report, you can double-
click an entry to access the General Journal Entry window, where you can edit the
selected transaction. If you change the standard report format (e.g., print a summary
report), Peachtree will not allow you to edit transactions in this manner.
QuickBooks Guide
Step-by-Step Instructions
Mini Practice Set 1
INSTRUCTIONS
Begin a Session
Step 1 Restore Mini Practice Set 1.QBB le.
Work the Accounting Problem
Step 2 Review the transactions shown in your textbook for Canyon.com
Web Sites.
Step 3 Record all of the transactions using the Make General Journal
Entries option. Use 2010 as the year. (See Figure MP1-A.)
QuickBooks Guide
Figure MP1-A The Make General Journal Entries window
Copyright by The McGraw-Hill Companies. All rights reserved.
4)0 Proof each general journal entry before you post it. Check the
account numbers, descriptions, and amounts.
FAQs
QuickBooks Guide
Does QuickBooks produce an audit trail if you edit a general journal entry?
Yes. QuickBooks can create an audit trail when you edit a general journal entry.
Select Preferences from the Edit menu. Choose the Accounting preference and
click on the Company Preferences tab. Choose Use audit trail and click OK.
Why will QuickBooks not allow you to access the Make General Journal Entries
window directly from the Journal report?
When you display the Journal report, you can double-click an entry to access an
account register. From the register you can double-click the desired entry to open the
Make General Journal Entries window, where you can edit the selected transaction.
CHAPTER
Study Guide
8 The Six-Column Work Sheet
Section Assessment
Section 1 Read Section 1 on pages 196199 and complete the following exercises on page 200.
Reinforce the Main Idea
Do the Math
Problem 8-1 Entering Account Balances on the Work Sheet
Problem 8-2 Analyzing a Source Document
Section 2 Read Section 2 on pages 201206 and complete the following exercises on page 207.
Reinforce the Main Idea
Do the Math
Problem 8-3 Extending Amounts Across the Work Sheet
Chapter Assessment
Summary Review the Chapter 8 Summary on pages 208209 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 210 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 211 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 8 in your textbook.
Problem 8-4 Preparing a Six-Column Work Sheet
Problem 8-5 Preparing a Six-Column Work Sheet
Problem 8-6 Preparing a Six-Column Work Sheet
Problem 8-7 Preparing a Six-Column Work Sheet
Challenge Problem Problem 8-8 Completing the Work Sheet
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 8 147
Name Date Class
Trial Balance
Account Name Classification Debit Credit
Store Equipment Asset X
Rent Expense
Service Fees Revenue
Accounts PayableRubino Supply
Scott Lee, Capital
Advertising Expense
Accounts ReceivableJohn Langer
Scott Lee, Withdrawals
Maintenance Expense
Ofce Supplies
148 Chapter 8
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Working Papers for End-of-Chapter Problems
Date
13 13
14 14
15 15
16 16
17 17
18 18
Problem 8-4 Preparing a Six-Column Work Sheet
19 19
Class
20 20
21 21
22 22
(textbook p. 212)
Analyze:
Chapter 8 149
Name
150 Chapter 8
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Date
13 13
14 14
15 15
16 16
17 17
18 18
Problem 8-5 Preparing a Six-Column Work Sheet
19 19
Class
20 20
21 21
22 22
23 23
(textbook p. 212)
24 24
Analyze:
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
Date
14 14
15 15
16 16
17 17
18 18
19 19
Problem 8-6 Preparing a Six-Column Work Sheet
20 20
21 21
Class
22 22
23 23
24 24
25 25
(textbook p. 213)
26 26
Analyze:
Chapter 8 151
Name
152 Chapter 8
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Date
13 13
14 14
15 15
16 16
17 17
18 18
Problem 8-7 Preparing a Six-Column Work Sheet
19 19
Class
20 20
21 21
Analyze:
(textbook p. 214)
Job Connect
Work Sheet
Name
(textbook p. 214)
24 6 9 1 8 5 00 6 9 1 8 5 00 24
25 Net Income 25
26 26
27 27
Chapter 8 153
Analyze:
Name
154 Chapter 8
Notes
Date
Class
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Print a General Ledger Trial Balance report.
2. Verify the information on a General Ledger Trial Balance.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Select the problem set for Hot Suds Car Wash (Prob. 8-5). ! 15%34)/.
Step 2 Rename the company and set the system date to May 31, 2010. Q. Why does Peachtree not
Prepare a Report and Proof Your Work include a six-column work
sheet report?
Step 3 Print a General Ledger Trial Balance report.
A. The six-column work
sheet is a convenient way to
manually prepare the income
4)0 You can access the General Ledger Trial Balance report
statement and balance sheet.
When you use accounting
using . software such as Peachtree,
the program automati-
cally generates these nancial
statements. A six-column
Step 4 Review the General Ledger Trial Balance report. Verify that the
work sheet is not needed to
debit/credit column totals are the same. The total debits/credits prepare these reports.
should be $49,862.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Copyright by The McGraw-Hill Companies. All rights reserved.
Step 6 Click the Close Problem button in the Glencoe Smart Guide window.
Chapter 8 155
Name Date Class
Peachtree Guide
156 Chapter 8
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Print a Trial Balance report.
2. Verify the information on a Trial Balance.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Launch the QuickBooks Pro 2005 software. ! 15%34)/.
Step 2 Restore Problem 8-5.QBB le. Q. Why does QuickBooks
Prepare a Report and Proof Your Work not include a six-column
QuickBooks Guide
work sheet report?
Step 3 Print a Trial Balance report as of May 31, 2010.
A. The six-column work
sheet is a convenient way to
manually proof your work
4)0 You can print the Trial Balance report by selecting
and prepare an income
statement and balance sheet.
Accountant & Taxes from the Reports menu or by When using accounting
using the Reports navigator. software like QuickBooks,
the program automatically
generates these nancial
Step 4 Review the Trial Balance report. Verify that the Debit and statements. A six-column
work sheet is not needed to
Credit column totals are the same. The totals of each column
prepare these reports.
should be $49,862.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Copyright by The McGraw-Hill Companies. All rights reserved.
Step 6 It is recommended that you back up your work for this session.
Chapter 8 157
Name Date Class
FAQs
Does QuickBooks include an option to print a six-column work sheet?
No, QuickBooks does not provide an option to print a work sheet. The program
allows you to print a Prot & Loss report and a Balance Sheet. To print a Prot & Loss
report or a Balance Sheet, choose Company & Financial from the Reports menu.
158 Chapter 8
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 8-4 Preparing a Six-Column Work Sheet
Complete the Spreadsheet
Step 1 Read the instructions for Problem 8-4 in your textbook. This problem
involves preparing a six-column work sheet for Wilderness Rentals.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Accounting Management System by typing your user
name and password.
Step 5 Under the Problems and Tutorials tab, select template 8-4 from the
Chapter 8 drop-down list. The template should look like the one
shown below.
PROBLEM 8-4
PREPARING A SIX-COLUMN WORK SHEET
(name)
(date)
WILDERNESS RENTALS
WORK SHEET
FOR THE MONTH ENDED MAY 31, 20
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 The rst account, Cash in Bank, has a month-end debit balance of
$5,814. Move the cell pointer to cell C14 and enter the account bal-
ance into the Trial Balance section of the spreadsheet template: 5814.
Chapter 8 159
Name Date Class
Step 8 Type the remaining balances into the Trial Balance section of the
spreadsheet template. When you have typed all of the balances, move
the cell pointer into the Income Statement and Balance Sheet sections
of the spreadsheet template. Notice that the amounts for the Income
Statement and Balance Sheet are automatically entered. As you type
the data into the Trial Balance section of the spreadsheet template,
the program automatically calculates the remaining sections of the
work sheet for you. The program also calculates the column totals
and the net income for Wilderness Rentals.
Step 9 Save the spreadsheet using the Save option from the File menu. You
should accept the default location of the save, as this is handled by
the management system.
Step 10 Print the completed spreadsheet.
If Cash in Bank were $4,314 and Rent Expense were $5,000, what would
Wilderness Rentals net income (or net loss) be?
160 Chapter 8
Name Date Class
(name)
(date)
JOB CONNECT
WORK SHEET
FOR THE MONTH ENDED MAY 31, 20
Spreadsheet Guide
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 The work sheet for Job Connect is given in the spreadsheet tem-
plate. However, several amounts are missing from various columns.
Calculate the missing amounts and type them in the cells containing
the AMOUNT placeholders. For example, the rst amount missing
is the Trial Balance debit amount for Accounts ReceivableMarquez
Manufacturing. By looking in the Balance Sheet debit column, you
can see this amount is $908.00. Type 908 in cell C16. Remember,
it is not necessary to type a dollar sign or the decimal point and
ending zeroes.
Chapter 8 161
Name Date Class
Step 8 Type the remaining missing amounts into the work sheet. Notice that
the template recalculates the column totals and the net income for
Job Connect as you type the missing amounts.
Step 9 Save the spreadsheet using the Save option from the File menu. You
should accept the default location of the save as this is handled by
the management system.
Step 10 Print the completed spreadsheet.
Step 11 Exit the spreadsheet program.
Step 12 In the Close Options window, select the location where you would
like to save your work.
Step 13 Complete the Analyze activity from your textbook for this problem.
162 Chapter 8
Name Date Class
9
Financial Statements for
CHAPTER a Sole Proprietorship
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 220223 and complete the following exercises on page 224.
Reinforce the Main Idea
Do the Math
Problem 9-1 Analyzing a Source Document
Section 2 Read Section 2 on pages 225228 and complete the following exercises on page 229.
Reinforce the Main Idea
Do the Math
Problem 9-2 Determining Ending Capital Balances
Section 3 Read Section 3 on pages 231236 and complete the following exercises on page 237.
Reinforce the Main Idea
Do the Math
Problem 9-3 Calculating Return on Sales
Chapter Assessment
Summary Review the Chapter 9 Summary on pages 238239 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 240 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 241 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following end-of-chapter Problems for Chapter 9 in your textbook.
Problem 9-4 Preparing an Income Statement
Problem 9-5 Preparing a Statement of Changes in Owners Equity
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 9 163
Name Date Class
1.
2.
3.
4.
5.
6.
7.
Beginning Ending
Investments Revenue Expenses Withdrawals
Capital Capital
1 $60,000 $ 500 $ 5,100 $ 2,400 $ 700
2 $24,075 $ 0 $13,880 $ 7,240 $ 800
3 $28,800 $ 1,000 $ 6,450 $ 6,780 $ 0
4 $ 0 $10,500 $ 5,320 $ 4,990 $ 200
5 $ 6,415 $ 0 $ 4,520 $ 3,175 $ 700
6 $20,870 $ 1,300 $13,980 $ 9,440 $ 1,700
164 Chapter 9
Copyright by The McGraw-Hill Companies. All rights reserved.
Wilderness Rentals
Work Sheet
Name
18 2 8 2 1 6 00 2 8 2 1 6 00 8 8 1 7 00 1 0 6 2 9 00 1 9 3 9 9 00 1 7 5 8 7 00 18
19 Net Income 1 8 1 2 00 1 8 1 2 00 19
Class
20 1 0 6 2 9 00 1 0 6 2 9 00 1 9 3 9 9 00 1 9 3 9 9 00 20
21 21
(textbook p. 242)
22 22
23 23
24 24
25 25
Chapter 9 165
Name Date Class
Analyze:
166 Chapter 9
Copyright by The McGraw-Hill Companies. All rights reserved.
Name
Analyze:
Problem 9-5 (concluded)
Date
Class
Chapter 9 167
Hot Suds Car Wash
(1)
Work Sheet
Name
168 Chapter 9
1 101 Cash in Bank 8 4 5 7 00 1
22 4 8 8 5 8 00 4 8 8 5 8 00 22
23 23
24 24
25 25
(3)
(2)
Name
Chapter 9 169
Name Date Class
Analyze:
170 Chapter 9
Copyright by The McGraw-Hill Companies. All rights reserved.
(1)
Name
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Date
13 13
14 14
15 15
16 16
Problem 9-7 Preparing Financial Statements
17 17
18 18
19 19
Class
20 20
21 21
(textbook p. 243)
22 22
23 23
24 24
25 25
Chapter 9 171
26 26
(3)
(2)
Name
172 Chapter 9
Problem 9-7 (continued)
Date
Class
Analyze:
Chapter 9 173
Name Date Class
Analyze:
174 Chapter 9
Name Date Class
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Print a Trial Balance report.
2. Print an Income Statement.
3. Print a Balance Sheet.
4. Print a Statement of Changes in Owners Equity.
INSTRUCTIONS
Begin a Session
$/ 9/5 (!6%
Step 1 Select the problem set for Wilderness Rentals (Prob. 9-4). ! 15%34)/.
Step 2 Rename the company and set the system date to Q. Does the Peachtree
September 30, 2010. software include an option to
print a Statement of Changes
Prepare a Report and Proof Your Work in Owners Equity?
Step 3 Print a General Ledger Trial Balance report. A. Yes, Peachtree does
Step 4 Print an Income Statement. provide the capability to print
the Statement of Changes in
To print an Income Statement:
Owners Equity report.
Choose Financial Statements from the Reports Menu.
Select Income Statement (Monthly) shown on the
Report List. (See Figure 9-5A.)
.OTES
Click .
Peachtree lets you
Click OK to accept the report options. create customized nancial
Review the report. statement reports. A custom-
ized report appears in the
Copyright by The McGraw-Hill Companies. All rights reserved.
Custom report
icon and
report title
Financial
Statement
Report List
Chapter 9 175
Name Date Class
Peachtree Guide
Report
Text-Header
Type in report
name
Click Preview. Select period and print options and click OK.
Click Print to print the report.
176 Chapter 9
Name Date Class
Peachtree Guide
Click Close, then No. You do not need to save changes to the
modied report.
You can prepare the Statement of Changes in Owners Equity manu-
ally by using capital balances from the Balance Sheet. Your teacher
will tell you whether to prepare the Statement of Changes in Owners
Equity manually or using Peachtree.
Step 6 Print the <Standard> Balance Sheet. Select it from the Financial
Statements option of the Reports menu.
Analyze Your Work
Step 7 Complete the Analyze activity shown in your textbook.
INSTRUCTIONS
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 9 177
Name Date Class
Peachtree Guide
178 Chapter 9
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Print a Trial Balance report.
2. Print a Prot & Loss report.
3. Print a Balance Sheet.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Launch the QuickBooks Pro 2005 software. ! 15%34)/.
Step 2 Restore Problem 9-6.QBB le. Q. Does the QuickBooks
QuickBooks Guide
Prepare a Report and Proof Your Work software include an option to
print a Statement of Changes
Step 3 Print a Trial Balance report. in Owners Equity?
Step 4 Print a Prot & Loss report.
A. No. QuickBooks does not
To print a Prot & Loss report: provide the capability to print
a Statement of Changes in
Choose Company & Financial from the Reports menu. Owners Equity report.
Select Prot and Loss Standard. (See Figure 9-6A.)
Company &
Copyright by The McGraw-Hill Companies. All rights reserved.
Financial
submenu
report list
Chapter 9 179
Name Date Class
Report
title
QuickBooks Guide
Click OK.
Click to print the report.
Click the , then click No when prompted to memorize
the report.
Step 5 Print a Balance Sheet.
180 Chapter 9
Name Date Class
QuickBooks Guide
Display the Prot & Loss report. Click the Export button
at the top of the report. Accept the default option to
export to a new Microsoft Excel workbook and click
Export. In a blank cell of the Excel worksheet, type the
formula to calculate the return on sales. Print the worksheet.
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 9 181
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 9-8 Preparing a Statement of Changes in Owners Equity
Complete the Spreadsheet
Step 1 Read the instructions for Problem 9-8 in your textbook. This problem
involves preparing a statement of changes in owners equity.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Management System by typing your user name and
password.
Step 5 Under the Problems and Tutorials tab, select template 9-8 from the
Chapter 9 drop-down list. The template should look like the one
shown below.
PROBLEM 9-8
PREPARING A STATEMENT OF CHANGES IN OWNERS EQUITY
(name)
(date)
182 Chapter 9
Name Date Class
10
Completing the Accounting Cycle
CHAPTER for a Sole Proprietorship
Study Guide
Section Assessment
Section 1 Read Section 1 on pages 250258 and complete the following exercises on page 259.
Reinforce the Main Idea
Do the Math
Problem 10-1 Preparing Closing Entries
Problem 10-2 Analyzing a Source Document
Section 2 Read Section 2 on pages 260262 and complete the following exercises on page 263.
Reinforce the Main Idea
Do the Math
Problem 10-3 Determining Accounts Affected by Closing Entries
Chapter Assessment
Summary Review the Chapter 10 Summary on pages 264265 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 266 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 267 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 10 in your textbook.
Problem 10-4 Preparing Closing Entries
Problem 10-5 Preparing a Post-Closing Trial Balance
Problem 10-6 Journalizing Closing Entries
Problem 10-7 Posting Closing Entries and Preparing a Post-Closing Trial Balance
Problem 10-8 Completing Period-End Activities
Problem 10-9 Completing End-of-Period Activities
Copyright by The McGraw-Hill Companies. All rights reserved.
Challenge Problem
Winning Complete the exercises on page 273 in your textbook.
Competitive Events
Real-World Complete the following applications on pages 274275 in your textbook.
Applications and Critical Thinking International Accounting
Connections Case Study Making It Personal
A Matter of Ethics Analyzing Financial Reports
Communicating Accounting WebQuest
Skills Beyond Numbers
Chapter 10 183
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
184 Chapter 10
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
(2), (4)
Chapter 10 185
Name Date Class
186 Chapter 10
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
Analyze:
Analyze:
Chapter 10 187
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
Analyze:
188 Chapter 10
Name Date Class
20
Dec. 31 Balance 1 2 0 0 0 00
20
Dec. 31 Balance 6 0 0 00
20
Dec. 31 Balance 1 0 0 0 00
20
Copyright by The McGraw-Hill Companies. All rights reserved.
Dec. 31 Balance 9 0 0 00
20
Dec. 31 Balance 5 5 0 0 00
20
Dec. 31 Balance 7 4 0 0 00
Chapter 10 189
Name Date Class
20
Dec. 31 Balance 7 1 0 0 00
20
Dec. 31 Balance 1 5 0 0 0 00
20
Dec. 31 Balance 3 0 0 0 0 00
20
Dec. 31 Balance 1 2 0 0 0 00
20
Dec. 31 Balance 9 0 0 0 00
20
Dec. 31 Balance 6 0 0 0 00
190 Chapter 10
Name Date Class
20
Dec. 31 Balance 5 0 2 0 0 00
20
Dec. 31 Balance 4 0 0 0 00
20
Dec. 31 Balance 1 6 3 0 0 00
Copyright by The McGraw-Hill Companies. All rights reserved.
20
Dec. 31 Balance 3 0 0 0 00
Chapter 10 191
Name Date Class
20
Dec. 31 Balance 4 0 0 0 00
20
Dec. 31 Balance 1 9 0 0 00
(2)
Analyze:
192 Chapter 10
Copyright by The McGraw-Hill Companies. All rights reserved.
(1)
Name
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
Date
14 14
15 15
16 16
17 17
18 18
Problem 10-8 Completing Period-End Activities
19 19
Class
20 20
21 21
22 22
23 23
(textbook p. 272)
24 24
25 25
26 26
Chapter 10 193
27 27
(2)
Name
194 Chapter 10
Problem 10-8 (continued)
Date
Class
(3)
GENERAL JOURNAL PAGE
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
Chapter 10 195
Name Date Class
1 1
2 2
3 3
4 4
5 5
(4)
GENERAL LEDGER (PARTIAL)
ACCOUNT Greg Failla, Capital ACCOUNT NO. 301
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Dec. 31 Balance 3 3 7 7 5 00
20
20
Dec. 31 Balance 9 6 0 0 00
196 Chapter 10
Name Date Class
20
Dec. 31 Balance 3 5 0 0 00
20
Dec. 31 Balance 1 6 0 0 00
20
Dec. 31 Balance 1 2 0 0 00
20
Copyright by The McGraw-Hill Companies. All rights reserved.
Dec. 31 Balance 4 0 0 00
20
Dec. 31 Balance 1 0 0 0 00
Chapter 10 197
Name Date Class
198 Chapter 10
Copyright by The McGraw-Hill Companies. All rights reserved.
(1)
Name
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
Date
13 13
14 14
15 15
16 16
17 17
18 18
Problem 10-9 Completing End-of-Period Activities
19 19
Class
20 20
21 21
22 22
23 23
(textbook p. 272)
24 24
25 25
Chapter 10 199
(2)
Name
200 Chapter 10
Problem 10-9 (continued)
Date
Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
Chapter 10 201
Name Date Class
20
Dec. 31 Balance 2 3 6 0 0 00
20
Dec. 31 Balance 3 0 0 0 00
20
20
Dec. 31 Balance 6 9 0 0 00
20
Dec. 31 Balance 2 4 0 0 00
202 Chapter 10
Name Date Class
20
Dec. 31 Balance 3 0 0 0 00
20
Dec. 31 Balance 8 0 0 00
20
Dec. 31 Balance 8 0 0 00
20
Dec. 31 Balance 2 0 0 0 00
Chapter 10 203
Name Date Class
Analyze:
204 Chapter 10
Name Date Class
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Close the current scal year.
2. Print a Post-Closing Trial Balance.
INSTRUCTIONS
Begin a Session
$/ 9/5 (!6%
Step 1 Select the problem set for Wilderness Rentals (Prob. 10-4). ! 15%34)/.
Step 2 Rename the company and set the system date to Q. Should you create a
December 31, 2010. backup before closing the
scal year?
Work the Accounting Problem
A. Yes, it is required that
Step 3 Perform the closing process. you make a backup of your
To close the scal year: work. You should do this
because you cannot access
1. Choose System from the Tasks menu and then choose transactions from a closed
Year-End Wizard. period. Also, the company
2. Year-End Wizard Welcome displays current open scal data les may be damaged
and payroll years. Click Next to continue. if the closing process is inter-
3. Year-End Wizard Close Options shows Years to Close for rupted. Taking a few moments
to make a backup could save
Fiscal and Payroll years. Click Next to continue.
you many hours of work in
4. Peachtree lets you print the General Ledger report before the event that your data les
you continue the closing process if the problem has are accidentally damaged.
transactions recorded. Year-End Wizard Unprinted Item If a problem occurs, you can
Warning displays unprinted items. Click Next. always restore the original
5. Year-End Wizard Reports displays year-end reports. You problem set.
do not have to print these reports. Deselect by removing
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 10 205
Name Date Class
Peachtree Guide
$/ 9/5 (!6%
! 15%34)/.
Q. Can you undo the
closing process?
A. No. Once you close a s-
cal year, you cannot undo the
process and reset the com-
pany data les. For this rea-
son, Peachtree requires that
you backup your work. Before
you close a scal year, you
should proof the transactions,
print summary reports, and
print the nancial statements
for the current period.
Figure 10-4A Year-End WizardCongratulations!
206 Chapter 10
Name Date Class
Peachtree Guide
End the Session
Step 5 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
INSTRUCTIONS
Begin a Session
$/ 9/5 (!6%
Step 1 Select the problem set for Kits & Pups Grooming (Prob. 10-6). ! 15%34)/.
Step 2 Rename the company and set the system date to Q. Do you have to manu-
December 31, 2010. ally post the closing entries?
Work the Accounting Problem A. No. When you choose
to close the scal year,
Step 3 Perform the closing process. Peachtree generates the
Step 4 Change the system date to January 1, 2011. closing entries behind the
scenes for you. The Peachtree
Analyze Your Work
software also automates the
Step 5 Complete the Analyze activity. posting process just as it auto-
matically posts the entries
End the Session
when you record a general
Step 6 Click the Close Problem button in the Glencoe Smart Guide journal transaction.
window and select a save option as directed by your teacher.
Chapter 10 207
Name Date Class
Peachtree Guide
FAQs
What if you notice a mistake after you close the scal year?
You have two options if you notice a mistake after you close the scal year. If you
made a backup before the closing, you can restore the company data, correct the
How do you print a post-closing trial balance, since Peachtree does not include
this report?
Peachtree does not include a standard report called Post-Closing Trial Balance,
but the standard General Ledger Trial Balance provides the same information. The
only difference is the title of the report which you can change using the reports
option. Click Options then Font tab, and change the Title 1 Report Label.
208 Chapter 10
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Close the current scal year.
2. Print a Post-Closing Trial Balance.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Restore the Problem 10-5.QBB le. ! 15%34)/.
Work the Accounting Problem
Q. How do you print a
post-closing trial balance
Step 2 Print a Post-Closing Trial Balance as of 01/01/2011. since QuickBooks does not
QuickBooks Guide
include this report?
Analyze Your Work
Step 3 Complete the Analyze activity.
A. QuickBooks does not
include a standard report
End the Session called Post-Closing Trial
Balance, but the Trial Balance
Step 4 It is recommended that you back up your work for report provides the same
this session. information. The only differ-
ence is the title of the report,
which you can change using
Display a Trial Balance. Change the report the Modify Reports button.
title to Post-Closing Trial Balance and print From the Modify Reports win-
the report. Review the online help informa- dow, select the Header/Footer
tion to learn how to change the report title. tab and then change the
report title.
INSTRUCTIONS
Begin a Session
.OTES
Step 1 Restore Problem 10-8.QBB le.
You need to close
Work the Accounting Problem the withdrawal account
Step 2 Print a Trial Balance for December 2010. manually, since other-
wise, QuickBooks will
Step 3 Print the nancial statements for December 2010.
automatically transfer
Step 4 Perform the closing process. the remaining temporary
To close the Withdrawal account: account balances into
retained earnings.
Choose Make General Journal Entries from the
Company menu.
Type 12/31/2010 in the Date eld.
Press Tab and type Closing in the Entry No. eld.
Press Tab and enter the capital account in the Account eld.
Press Tab and type 4,000 in the Debit column.
Chapter 10 209
Name Date Class
$/ 9/5 (!6%
! 15%34)/.
Q. Can you undo the
closing process?
A. Yes, you can remove
the closing date and users
who have access can change
items within the closed
period. You can also make
changes to transactions if you
know the password for the
closed period.
210 Chapter 10
Name Date Class
QuickBooks Guide
Figure 10-8B The Set Closing Date Password Window
.OTES
Click OK in the Set Closing Date Password window. In the closing process,
Click OK in the Preferences window. QuickBooks will zero out
Step 5 Print a Post-Closing Trial Balance using 01/01/2011 the balances of the Expense
as the date for the report. and Income accounts
and transfer them to an
Analyze Your Work equity account named
Step 6 Complete the Analyze activity. Retained Earnings. As
your Retained Earnings
End the Session are increased, your Net
Step 7 It is recommended that you back up your work Income is decreased by
for this session. the same amount.
Chapter 10 211
Name Date Class
FAQs
What if you notice a mistake after you close the scal year?
You can correct a mistake in a scal year that has been closed by rst locating the
entry to be changed. After the necessary changes have been made, you can save
the entry. Since closing the scal year allows you to apply a password to protect
the data, QuickBooks will prompt you for the password before it saves the changes
to the transaction.
How do you print a post-closing trial balance, since QuickBooks does not include
this report?
QuickBooks does not include a standard report called Post-Closing Trial Balance,
but the Trial Balance provides the same information. The only difference from
the Modify Reports is the title of the report, which you can change using the
Modify Reports button. Select the Header/Footer tab and then change the
report title.
212 Chapter 10
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 10-9 Completing End-of-Period Activities
Complete the Spreadsheet
Step 1 Read the instructions for Problem 10-9 in your textbook. This problem
involves preparing a six-column work sheet and the end-of-period
nancial statements for Job Connect.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Accounting Management System by typing your user
name and password.
Step 5 Under the Problems & Tutorials tab, select template 10-9 from the
Chapter 10 drop-down list. The template should look like the one
shown below.
PROBLEM 10-9
COMPLETING END-OF-PERIOD ACTIVITIES
(name)
(date)
JOB CONNECT
WORK SHEET
FOR THE MONTH ENDED DECEMBER 31, 20
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 The rst account, Cash in Bank, has a month-end balance of
$6,000. Move the cell pointer to cell C14 and type the account bal-
ance into the Trial Balance debit column of the work sheet: 6000.
Chapter 10 213
Name Date Class
Step 8 Type the remaining balances into the Trial Balance section of the work
sheet. When you have typed all of the balances, move the cell pointer
into the Income Statement and Balance Sheet sections of the work
sheet. Notice that the amounts for the Income Statement and Balance
Sheet are automatically entered. As you type the data into the Trial
Balance section of the work sheet, the program automatically calculates
the remaining sections of the work sheet for you. The program also cal-
culates the column totals and the net income for Job Connect.
Step 9 Now scroll down below the work sheet and look at the income state-
ment, statement of changes in owners equity, and balance sheet for
Job Connect. Notice the nancial statements are already completed.
This is because the spreadsheet template includes formulas that auto-
matically pull information from the lled-in work sheet to complete
the nancial statements.
Step 10 Now scroll down below the balance sheet and complete the closing
entries in the general journal. The account names and posting refer-
ences are given for you.
Step 11 Scroll down below the closing entries and look at the post-closing
trial balance. The amounts have been automatically calculated using
formulas.
Step 12 Save the spreadsheet using the Save option from the File menu. You
should accept the default location for the save, as this is handled by
the Accounting Management System.
Step 13 Print the completed spreadsheet.
4)0 When printing a long spreadsheet with multiple parts, you may
want to insert page breaks between the sections, so that each
one begins printing at the top of a new page. Page breaks have
already been entered into this spreadsheet template. Check
your programs online Help le for instructions on how to enter
page breaks.
If Cash in Bank were $5,000 and Advertising Expense were $4,000, what
would Job Connects net income be? What would Job Connects ending capital be?
214 Chapter 10
Name Date Class
CHAPTER
Study Guide
11 Cash Control and Banking Activities
Section Assessment
Section 1 Read Section 1 on pages 278282 and complete the following exercises on page 283.
Reinforce the Main Idea
Do the Math
Problem 11-1 Preparing a Deposit Slip and Writing Checks
Section 2 Read Section 2 on pages 284291 and complete the following exercises on page 292.
Reinforce the Main Idea
Do the Math
Problem 11-2 Analyzing a Source Document
Chapter Assessment
Summary Review the Chapter 11 Summary on pages 294295 in your textbook.
Key Concepts
Review and Complete the following questions and exercises on page 296 in your textbook.
Activities Check Your Understanding
Apply Key Terms
Computerized Read the Computerized Accounting information on page 297 in your textbook.
Accounting Making the Transition from a Manual to a Computerized System
Peachtree Q&A
QuickBooks Q&A
Problems Complete the following End-of-Chapter Problems for Chapter 11 in your textbook.
Problem 11-3 Handling Deposits
Problem 11-4 Maintaining the Checkbook
Problem 11-5 Reconciling the Bank Statement
Problem 11-6 Reconciling the Bank Statement
Problem 11-7 Reconciling the Bank Statement
Challenge Problem Problem 11-8 Reconciling the Bank Statement Using the Account Form
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 11 215
Name Date Class
Date 20 1
Checks and other items are received for deposit subject to 2
the terms and conditions of this banks collection agreement. 3
4
5
6
113 Old Cape Road
Dennis, MA 02638 7
8
$ No. 41
41
Date 20
51-160
To 113 Old Cape Road
111
For
Dennis, MA 02638
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward 1,641 96 ORDER OF $
Add deposits
DOLLARS
First Bank of the Cape
HYANNIS, MA 02601
Total
$ No. 42
42
Date 20
1.
2.
3.
216 Chapter 11
Name Date Class
(2)
Date 20 1
Checks and other items are received for deposit subject to 2
the terms and conditions of this banks collection agreement. 3
4
5
Wilderness Rentals 6
Center Street
Little Rock, AR 72219 7
8
(3)
Copyright by The McGraw-Hill Companies. All rights reserved.
$ No. 651
651
Date 20 Wilderness Rentals 63-294
To Center Street 631
For Little Rock, AR 72219
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward 3,306 54 ORDER OF $
Add deposits
DOLLARS
First National Bank
LITTLE ROCK, AR
Total
Analyze:
Chapter 11 217
Name Date Class
$ No. 504
504
Date 20
248 Seventh Avenue 2-1116
To 710
Colorado Springs, CO 80943
For
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward 3,486 29 ORDER OF $
Add deposits
DOLLARS
American Bank
COLORADO SPRINGS, CO
Total
$ No. 505
505
Date 20
248 Seventh Avenue 2-1116
To 710
Colorado Springs, CO 80943
For
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward
ORDER OF $
Add deposits
DOLLARS
American Bank
COLORADO SPRINGS, CO
Total
$ No. 506
506
Date 20
248 Seventh Avenue 2-1116
To 710
Colorado Springs, CO 80943
For
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward
ORDER OF $
$ No. 507
507
Date 20
248 Seventh Avenue 2-1116
To 710
Colorado Springs, CO 80943
For
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward
ORDER OF $
Add deposits
DOLLARS
American Bank
COLORADO SPRINGS, CO
Total
218 Chapter 11
Name Date Class
$ No. 773
Date 20
To
For
Dollars Cents
Total
(2)
2. List any checks still outstanding in the space provided to the right.
Chapter 11 219
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
(4)
GENERAL LEDGER (PARTIAL)
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Oct. 1 Balance 2 0 5 0 00
30 G3 4 0 5 00 9 6 0 00
20
Oct. 1 Balance 4 9 5 00
17 G2 1 0 00 6 0 5 00
Analyze:
220 Chapter 11
Name Date Class
$ No. 888
Date 20
To
For
Dollars Cents
Total
(2)
2. List any checks still outstanding in the space provided to the right.
statement here.
4. Enter deposits recorded in your
checkbook but not shown on this
statement.
Chapter 11 221
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
(4)
GENERAL LEDGER (PARTIAL)
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Oct. 1 Balance 3 0 8 9 50
30 G6 6 8 64 2 5 5 1 34
20
Oct. 1 Balance 1 9 50
10 G4 1 8 00 6 2 44
18 G5 6 2 44
25 G6 1 0 00 5 0 00
222 Chapter 11
Name Date Class
$ No. 1772
Date October 31 20
To
For
Dollars Cents
Total
(2)
2. List any checks still outstanding in the space provided to the right.
Chapter 11 223
Name Date Class
1 1
2 2
3 3
4 4
5 5
6 6
7 7
(4)
GENERAL LEDGER (PARTIAL)
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Oct. 30 Balance 1 3 4 6 2 96
( )
ACCOUNT Miscellaneous Expense ACCOUNT NO. 512
POST. BALANCE
DATE DESCRIPTION DEBIT CREDIT
20
Oct. 30 Balance 6 1 0 47
Analyze:
224 Chapter 11
Name Date Class
Job Connect
405 McLocklin Drive
Account Number: 555113
Durham, NC 27713
FDIC Statement Date: 10/18/20
Balance Deposits & Other Credits Checks & Other Debits Balance
Last Statement No. Amount No. Amount This Statement
Chapter 11 225
Name
Analyze:
226 Chapter 11
Problem 11-8 (concluded)
Date
Class
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
What Youll Learn Using Peachtree
When you have completed this chapter, you will be able to use Peachtree to:
1. Record a payment.
2. Use the Account Reconciliation feature to reconcile a bank statement.
3. Adjust an account.
4. Print the Account Reconciliation reports.
INSTRUCTIONS
Begin a Session $/ 9/5 (!6%
Step 1 Select the problem set for Hot Suds Car Wash (Prob. 11-4). ! 15%34)/.
Step 2 Rename the company and set the system date to Q. Do you have to use
October 31, 2010. Peachtree to print checks?
Work the Accounting Problem A. No. You do not have to
use Peachtree to print checks,
Step 3 Record Check 504 issued on October 3. although Peachtree does offer
Issued Check 504 for $868.45 to Custom Construction this feature. If you prefer, you
for construction supplies. can manually write checks
and then use Peachtree to
To record a payment: record these payments.
Choose Payments from the Tasks menu.
Type CC (the account ID for Custom Construction) in the
Vendor ID eld.
If you do not know the account code for a payee, click the
button, highlight the vendor name, and click the OK button.
Type 504 in the Check Number eld. .OTES
Type 10/3/10 in the Date eld. Make sure that Peachtree
Copyright by The McGraw-Hill Companies. All rights reserved.
4)0 As a shortcut, you can just type the day of the month in most
date elds. Peachtree will automatically format the date.
Chapter 11 227
Name Date Class
Peachtree Guide
Proof the information you just recorded. Check all of the informa-
tion you entered. If you notice a mistake, move to that eld and
make the correction. Compare the information on your screen to
the completed transaction shown in Figure 11-4A.
Prints Displays
checks Accounting
Posts Behind the
payment Screens
Check number
Displays
transac- Check date
tions
already
posted Payment drawn
on this account
Vendor
(payee) Total check
ID amount
Memo Transaction detail
.OTES
Viewing the
Accounting Behind the
Screens window is not
228 Chapter 11
Name Date Class
Peachtree Guide
Click to close the Accounting Behind the Screens window.
Although not required to, you could use Peachtree to print real
checks either on pre-printed checks or duplicate checks on blank
paper. If you choose to print a real check, you would leave the
check-number blank and click . Select a check form (e.g., AP
Preprint 2 Stub). Then click the Real button to print the check. If
you enter a check number, Peachtree prints Duplicate on the check.
The software automatically posts the transaction and is ready for
the next payment after the check is printed.
4)0 If you notice an error after you post an entry, click and
choose the transaction you want to edit. Make the corrections
and post the transaction again to record the changes.
Step 4 Record the remaining checks (505507) issued during the month.
Step 5 Record the deposits for October 3 ($601.35Tape 303) and
October 10 ($342.80Tape 304).
Use the General Journal Entry option to enter the deposits.
For both deposits, debit 101 Cash and credit 401 Wash Revenue.
Step 6 Print an Account Register report.
.OTES
To print an Account Register report:
The Account Register
Choose Account Reconciliation from the Reports menu. report shows all of the
account activity (with-
Select Account Register in the report list and click .
drawals and deposits) for
Click OK to accept the standard option settings. the current period.
Step 7 Proof the information on the report. If you notice an error,
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 11 229
Name Date Class
Peachtree Guide
4)0 You can also use the Service Charges eld, below the Checks
and Bank Debits section, to enter the bank service charge. You
must also complete the Date and Account elds when you use
the Service Charges eld.
230 Chapter 11
Name Date Class
Peachtree Guide
Records
account
reconciliation
data
Click here to
mark check
as cleared
Do not mark Bank
outstanding statement
clecks balance
Checkbook
balance
Unreconciled
difference
Figure 11-5A Account Reconciliation Window (Checks/Deposits Marked)
Transaction
detail
.OTES
When you enter an
Copyright by The McGraw-Hill Companies. All rights reserved.
Chapter 11 231
Name Date Class
Peachtree Guide
232 Chapter 11
Name Date Class
Peachtree Guide
Problem 11-8 Reconciling the Bank Statement
Using the Account Form
INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Job Connect (Prob. 11-8).
Step 2 Rename the company and set the system date to October 20, 2010.
Work the Accounting Problem
Step 3 Reconcile the bank statement.
Note: The $200 check issued to Fontenot Inc. was issued to pay for
maintenance and repairs.
Chapter 11 233
Name Date Class
Peachtree Guide
FAQs
How do you edit or delete an additional (adjustment) transaction entered using
the Account Reconciliation feature?
Once you enter an additional transaction when reconciling an account, click
Adjust on the Account Reconciliation toolbar. On the General Journal Entry
window, click Open and select the entry you want to change. Edit or delete the
transaction and then choose the Account Reconciliation option to continue
where you left off.
When you use the Account Reconciliation option and record an adjustment, do
you have to make a separate entry to update the general ledger?
No. Peachtree automatically creates a general journal entry behind the scenes
when you enter an adjustment (e.g., bank service charge) using the Account
Reconciliation option.
234 Chapter 11
Name Date Class
QuickBooks Guide
Step-by-Step Instructions
What Youll Learn Using QuickBooks
When you have completed this chapter, you will be able to use QuickBooks to:
1. Use the Reconcile feature to reconcile a bank statement.
2. Record service charges.
3. Print the Detail Reconciliation report.
QuickBooks Guide
Step 2 Reconcile the bank statement. Reconciliation window and
record the service charge or
The problem set includes all of the transaction data needed interest earned, do you have
to perform the account reconciliation. Payments and depos- to make a separate entry to
its made throughout the month have already been recorded update the general ledger?
for you. Bank service charges and other fees have not been A. No. QuickBooks automati-
recorded. cally creates a general journal
To reconcile the bank statement: entry behind the scenes when
you enter a service charge or
Choose Reconcile from the Banking menu. The Begin interest earned in the Begin
Reconciliation window will be displayed. Reconciliation window.
Make sure the 101 Cash in Bank account shows in
the Account eld. If it does not, click the Account pull-down
menu and choose 101 Cash in Bank.
Press Tab and type 10/31/2010 in the Statement Date eld.
Account to
Copyright by The McGraw-Hill Companies. All rights reserved.
be reconciled
Statement
date
Ending
balance
Bank service
charge
Interest
income
Figure 11-5A The Begin Reconciliation Window
Chapter 11 235
Name Date Class
Click here to
mark check
as cleared
Do not mark
outstanding
Click to
return to
reconciliation Bank
at a later time Statement
balance
Unreconciled
Click to nish difference
reconciliation
Figure 11-5B The Reconcile Cash in Bank Window
236 Chapter 11
Name Date Class
Detail shows
all reconciled
and outstanding
checks and
deposits.
QuickBooks Guide
Figure 11-5C The Select Reconciliation Report Window
From eld.
Press Tab and type 10/31/2010 in the Through eld.
(See Figure 11-5D.)
Step 3 Print the Detail Reconciliation report for October 2010. .OTES
Step 4 Print the Cash in Bank Register for October 2010. You do not have
Analyze Your Work to make a separate gen-
eral journal entry to record
Step 5 Complete the Analyze activity. Use the Cash in Bank a bank service charge.
Register for help. QuickBooks automatically
creates this entry when
End the Session
you record the bank ser-
Step 6 It is recommended that you back up your work for vice charge in the Begin
this session. Reconciliation window.
When you use the Reconcile option and record a bank service charge or interest,
do you have to make a separate entry to update the general ledger?
No. QuickBooks automatically creates an entry behind the scenes that can be
found in the account register.
238 Chapter 11
Name Date Class
Spreadsheet Guide
Step-by-Step Instructions
Problem 11-6 Reconciling the Bank Statement
Complete the Spreadsheet
Step 1 Read the instructions for Problem 11-6 in your textbook. This prob-
lem involves reconciling a bank statement for Outback Guide Service.
Step 2 Open the Glencoe Accounting: Electronic Learning Center software.
Step 3 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 4 Log onto the Accounting Management System by typing your user
name and password.
Step 5 Under the Problems & Tutorials tab, select template 11-6 from the
Chapter 11 drop-down list. The template should look like the one
shown below.
PROBLEM 11-6
RECONCILING THE BANK STATEMENT
(name)
(date)
Deposits in transit:
30-Oct AMOUNT
TOTAL DEPOSITS 0.00
Outstanding checks:
Check #872 AMOUNT
Check #881 AMOUNT
Copyright by The McGraw-Hill Companies. All rights reserved.
Deductions:
Bank service charge AMOUNT
NSF check AMOUNT
TOTAL DEDUCTIONS 0.00
ADJUSTED CHECKBOOK BALANCE 0.00
Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Chapter 11 239
Name Date Class
Step 7 The balance shown on the bank statement is $2,272.36. Move the cell
pointer to cell E12 and type the bank statement balance: 2272.36.
(Remember, it is not necessary to include a comma as part of the
entry.)
Step 8 A deposit was not reected on the bank statement. Move the cell
pointer to cell D15 and type the amount of the deposit.
Step 9 Beginning in cell D19, type the amounts for the outstanding checks.
The spreadsheet template will automatically calculate the adjusted
bank balance.
Step 10 Move the cell pointer to cell E26 and type the checkbook balance.
Step 11 No interest was earned for the period, so there are no additions to the
checkbook balance. Move the cell pointer to cell D29 and type 0 as
the amount of interest earned.
Step 12 Move the cell pointer to cell D33 and type the amount of the bank
service charge.
Step 13 Move the cell pointer to cell D34 and type the amount of the NSF
check. The spreadsheet template will automatically calculate the
adjusted checkbook balance.
Step 14 The adjusted bank balance and adjusted checkbook balance should be
equal. If they are not equal, nd the error(s) and make the necessary
corrections.
Step 15 Save the spreadsheet using the Save option from the File menu. You
should accept the default location for the save, as this is handled by
the Accounting Management System.
Step 16 Print the completed spreadsheet.
Step 17 Exit the spreadsheet program.
Step 18 In the Close Options window, select the location where you would
like to save your work.
Step 19 Complete the Analyze activity from your textbook for this problem.
240 Chapter 11
Name Date Class
ASSETS
101 Cash in Bank
110 Accounts ReceivableCarla DiSario
120 Accounts ReceivableGeorge McGarty
140 Ofce Supplies
150 Ofce Equipment
155 Instructional Equipment
LIABILITIES
210 Accounts PayableEducational Software
215 Accounts PayableT & N School Equip.
OWNERS EQUITY
301 Jennifer Rachael, Capital
305 Jennifer Rachael, Withdrawals
310 Income Summary
REVENUE
401 Group Lessons Fees
405 Private Lessons Fees
EXPENSES
505 Maintenance Expense
510 Miscellaneous Expense
515 Rent Expense
525 Utilities Expense
Copyright by The McGraw-Hill Companies. All rights reserved.
Fast Track Tutoring Service MEMORANDUM 1 Fast Track Tutoring Service RECEIPT
75 Knoll Ridge Drive
75 Knoll Ridge Drive No. 1
Austin, TX 78708
Austin, TX 78708
Prepare entry to record $25,000 cash investment by Jennifer Rachael. FOR Private instruction
Fast Track Tutoring Service 102 Fast Track Tutoring Service INVOICE NO. 101
75 Knoll Ridge Drive
75 Knoll Ridge Drive 71-627 Austin, TX 78708 DATE: Dec. 8, 20
Austin, TX 78708 3222 ORDER NO.:
DATE December 2 20 Carla DiSario SHIPPED BY:
PAY TO THE TO 99 Louise St. TERMS:
ORDER OF Office Depot $ 73.00 Austin, TX 78708
Citibank
MEMO rent Jennifer Rachael
3222 71627 1123 4533 0104
QTY. ITEM UNIT PRICE TOTAL Two hundred and 00/100 DOLLARS
Citibank
RECEIPT MEMO personal withdrawal Jennifer Rachael
Fast Track Tutoring Service
75 Knoll Ridge Drive 3222 71627 1123 4533 0107
No. 2
Austin, TX 78708
December 11 20
RECEIVED FROM Cash customers $ 695.00 Fast Track Tutoring Service 108
75 Knoll Ridge Drive 71-627
Six hundred ninety-five and 00/100 DOLLARS Austin, TX 78708 3222
DATE December 20 20
FOR 20 private lessons between 12/1 and 12/10
PAY TO THE
Copyright by The McGraw-Hill Companies. All rights reserved.
Citibank
MEMO electricity bill Jennifer Rachael
Fast Track Tutoring Service RECEIPT 3222 71627 1123 4533 0108
75 Knoll Ridge Drive No. 3
Austin, TX 78708
Citibank
MEMO stamps Jennifer Rachael
3222 71627 1123 4533 0109
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
Copyright by The McGraw-Hill Companies. All rights reserved.
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
2. List any checks still outstanding in the space provided to the right.
Citibank
Total
(8)
Name
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
Mini Practice Set 2 (continued)
9 9
10 10
11 11
12 12
Date
13 13
14 14
15 15
16 16
17 17
18 18
19 19
Class
20 20
21 21
22 22
(9)
(11)
Copyright by The McGraw-Hill Companies. All rights reserved.
Analyze:
Peachtree Guide
Peachtree Guide
Step-by-Step Instructions
Mini Practice Set 2
INSTRUCTIONS
Begin a Session
Step 1 Open the Glencoe Accounting: Electronic Learning Center software.
Step 2 From the Program Menu, click on the Peachtree Complete
Accounting Software and Spreadsheet Applications icon.
Step 3 Log onto the Accounting Management System by typing your user
name and password.
Step 4 Under the Problems & Tutorials tab, select the problem set for
Fast Track Tutoring Service (MP-2) from the drop-down menu.
Step 5 Rename the company by adding your initials, e.g., Fast Track
(MP-2:XXX).
Step 6 Set the system date to December 31, 2010.
Work the Accounting Problem
Step 7 Analyze each business transaction shown in your textbook for Fast
Track Tutoring Service.
Step 8 Record all of the transactions using the General Journal Entry
option.
4)0 Proof each general journal entry before you post it. Check the
account numbers, descriptions, and amounts.
QuickBooks Guide
Step-by-Step Instructions
Mini Practice Set 2
INSTRUCTIONS
Begin a Session
Step 1 Restore the Mini Practice Set 2.QBB le.
Work the Accounting Problem
Step 2 Analyze each business transaction shown in your textbook for Fast
Track Tutoring Service.
Step 3 Record all of the transactions using the Make General Journal
Entries option. Use 2010 as the year. Do not enter the transaction
involving the bank service charge. QuickBooks will create this entry
when you complete the bank reconciliation.
QuickBooks Guide
4)0 Proof each general journal entry before you save it. Check the
account numbers, descriptions, and amounts.