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Chapter Study Guides and Working Papers

With Peachtree, QuickBooks, and Spreadsheet Guides

Chapters 129

First-Year Course
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on the condition that such materials be reproduced only for classroom use; be provided to students, teachers, and families without
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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

Chapter 2: The World of Business and Accounting


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Chapter 3: Business Transactions and the Accounting Equation


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Chapter 4: Transactions That Affect Assets, Liabilities,


and Owners Capital
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Chapter 5: Transactions That Affect Revenue, Expenses and Withdrawals


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Copyright by The McGraw-Hill Companies. All rights reserved.

QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62

Chapter 6: Recording Transactions in a General Journal


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Chapter 7: Posting Journal Entries to General Ledger Accounts


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Table of Contents iii


Mini Practice Set 1: Setting Up Accounting Records for a Sole Proprietorship
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145

Chapter 8: The Six-Column Work Sheet


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

Chapter 9: Financial Statements for a Sole Proprietorship


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Chapter 10: Completing the Accounting Cycle for a Sole Proprietorship


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 184
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 209
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

Chapter 11: Cash Control and Banking Activities

Copyright by The McGraw-Hill Companies. All rights reserved.


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 227
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239

Mini Practice Set 2: Completing the Accounting Cycle for


a Sole Proprietorship
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259

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

Chapter 13: Payroll Liabilities and Tax Records


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 299
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

Mini Practice Set 3: Payroll Accounting


Source Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 324
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 337
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341

Chapter 14: Accounting for Sales and Cash Receipts


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377

Chapter 15: Accounting for Purchases and Cash Payments


Copyright by The McGraw-Hill Companies. All rights reserved.

Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389


Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 390
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 393
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 417
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 429

Chapter 16: Special Journals: Sales and Cash Receipts


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 431
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 432
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455

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

Chapter 18: Adjustments and the Ten-Column Work Sheet


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 493
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 496
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 519

Chapter 19: Financial Statements for a Corporation


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 521
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 522
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 524
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 551
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 553

Mini Practice Set 4: Recording Business Transactions in Special Journals


Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 555
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 560
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 581
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 583

Chapter 20: Completing the Accounting Cycle for a Merchandising


Corporation

Copyright by The McGraw-Hill Companies. All rights reserved.


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 585
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 586
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 589
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 611
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613

Chapter 21: Accounting for Publicly Held Corporations


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 615
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 619
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 627
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 631
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 635

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 23: Plant Assets and Depreciation


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 663
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 664
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 667
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 687
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 691

Chapter 24: Uncollectible Accounts Receivable


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 693
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 694
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 723
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 731

Chapter 25: Inventories


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 737
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 738
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 739
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 749
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 753

Chapter 26: Notes Payable and Receivable


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 755
Copyright by The McGraw-Hill Companies. All rights reserved.

Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 756


Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 758
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 773

Mini Practice Set 5: Completing the Accounting Cycle for a Merchandising


Corporation
Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 783
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 805
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 807
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 809

Table of Contents vii


Chapter 27: Introduction to Partnerships
Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 811
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 812
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 813
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 819
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 825

Chapter 28: Financial Statements and Liquidation of a Partnership


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 827
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 831
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 841
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 843
Spreadsheet Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845

Mini Practice Set 6: Completing the Accounting Cycle for a Partnership


Chart of Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 849
Working Papers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 855
Peachtree Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 869
QuickBooks Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 871
Audit Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 873

Chapter 29: Ethics in Accounting


Study Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 875
Working Papers for Section Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 876
Working Papers for End-of-Chapter Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877

Appendix A: Adjustments for a Service Business Using a


Ten-Column Work Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 880

Copyright by The McGraw-Hill Companies. All rights reserved.


Appendix B: Using the Numeric Keypad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 885

Appendix C: Recording Transactions in the Combination Journal . . . . 889

Appendix D: The Accrual Basis of Accounting . . . . . . . . . . . . . . . . . . . . . . . 897

Appendix E: Federal Personal Income Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . 901

Appendix F: Additional Math Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 907

Appendix G: Additional Reinforcement Problems . . . . . . . . . . . . . . . . . . . . 929

viii Table of Contents


Name Date Class

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.

Challenge Problem  Problem 1-14 Exploring Global Careers

Winning Complete the exercises on page 23 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 2425 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting  WebQuest

6 1
Chapter 1
Name Date Class

Working Papers for Section Problems


Problem 1-1 Studying Yourself (textbook p. 12)

List at least ve personal interests or skills.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

2 Chapter 1
Name Date Class

Problem 1-2 Gathering Career Resources (textbook p. 12)

Personal Career Profile Form


Name: Date: Career:
Your Values Career Values

Your Interests Career Duties and Responsibilities

Your Personality Personality Type Needed


Copyright by The McGraw-Hill Companies. All rights reserved.

Skills and Aptitudes Skills and Aptitudes Required

Education/Training Acceptable Education/Training Required

Chapter 1 3
Name Date Class

Problem 1-2 (continued)

Personal Career Profile Form


Name: Date: Career:
Your Values Career Values

Your Interests Career Duties and Responsibilities

Your Personality Personality Type Needed

Copyright by The McGraw-Hill Companies. All rights reserved.


Skills and Aptitudes Skills and Aptitudes Required

Education/Training Acceptable Education/Training Required

4 Chapter 1
Name Date Class

Problem 1-2 (concluded)

Personal Career Profile Form


Name: Date: Career:
Your Values Career Values

Your Interests Career Duties and Responsibilities

Your Personality Personality Type Needed


Copyright by The McGraw-Hill Companies. All rights reserved.

Skills and Aptitudes Skills and Aptitudes Required

Education/Training Acceptable Education/Training Required

Chapter 1 5
Name Date Class

Problem 1-3 Checking Out Accounting Careers (textbook p. 16)

Career Formal Training Needed Work Experience Needed

Copyright by The McGraw-Hill Companies. All rights reserved.

Which of the careers listed above do you prefer?

Why does this career appeal to you?

6 Chapter 1
Name Date Class

Problem 1-4 Matching Interests and Careers (textbook p. 16)

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
Name Date Class

Problem 1-5 Researching Public Accounting Firms (textbook p. 16)

Companys name: Services provided:

Web site:

Companys name: Services provided:

Web site:

Companys name: Services provided:

Web site:

Companys name: Services provided:

Web site:

Copyright by The McGraw-Hill Companies. All rights reserved.


Problem 1-6 Interviewing Accountants (textbook p. 16)

8 Chapter 1
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 1-7 Researching Careers in Your Library (textbook p. 21)

Problem 1-8 Researching Careers in Your Local Newspaper (textbook p. 21)

Job Title Skills Required Education Required


Copyright by The McGraw-Hill Companies. All rights reserved.

Chapter 1 9
Name Date Class

Problem 1-9 Assessing Your Skills and Interests (textbook p. 21)

What are your aptitudes and abilities?

What are your interests?

What are your values?

Do you like working with people?

Do you like working with data?

Copyright by The McGraw-Hill Companies. All rights reserved.


Do you like working with numbers?

Using your answers above, list three careers that might match your skills and interests.

10 Chapter 1
Name Date Class

Problem 1-10 Working with Others (textbook p. 21)

Situation Skills Needed How can you get those skills?


Training new hires
in the accounting
department

Discuss project
cost overruns with
a department
manager
Present operating
results to senior
managers

Problem 1-11 Summarizing Personal Traits (textbook p. 22)

1.
2.
3.
4.
5.
6.
7.
8.
9.
Copyright by The McGraw-Hill Companies. All rights reserved.

10.

Which ve characteristics were mentioned most often?

Do these descriptions match your self-perception? Why or why not?

Chapter 1 11
Name Date Class

Problem 1-12 Gathering Career Information (textbook p. 22)

Copyright by The McGraw-Hill Companies. All rights reserved.

12 Chapter 1
Name Date Class

Problem 1-13 Exploring Careers in Accounting (textbook p. 22)

Problem 1-14 Exploring Global Careers (textbook p. 22)


Copyright by The McGraw-Hill Companies. All rights reserved.

Chapter 1 13
Name

14 Chapter 1
Notes
Date
Class

Copyright by The McGraw-Hill Companies. All rights reserved.


Name 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

Winning Complete the exercises on page 43 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 4445 in your textbook.
 Critical Thinking  Skills Beyond Numbers
Copyright by The McGraw-Hill Companies. All rights reserved.

Applications and
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting  WebQuest

6 15
Chapter 2
Name Date Class

Working Papers for Section Problems


Problem 2-1 Assess Your Entrepreneurship Potential (textbook p. 32)

Most Like Me Least Like Me


Persistent 5 4 3 2 1
Creative 5 4 3 2 1
Responsible 5 4 3 2 1
Inquisitive 5 4 3 2 1
Goal-oriented 5 4 3 2 1
Independent 5 4 3 2 1
Demanding 5 4 3 2 1
Self-condent 5 4 3 2 1
Risk-taking 5 4 3 2 1
Restless 5 4 3 2 1

Problem 2-2 Using Financial Information (textbook p. 36)

Copyright by The McGraw-Hill Companies. All rights reserved.

16 Chapter 2
Name Date Class

Problem 2-3 Identifying Accounting Assumptions (textbook p. 36)

Working Papers for End-of-Chapter Problems


Problem 2-4 Identifying Types of Businesses (textbook p. 41)

1. 5. 9.
2. 6. 10.
3. 7. 11.
4. 8. 12.

Problem 2-5 Understanding Accounting Assumptions (textbook p. 41)

1. 3. 5.
Copyright by The McGraw-Hill Companies. All rights reserved.

2. 4. 6.

Problem 2-6 Understanding Business Operations (textbook p. 41)

1.
2. prot on bread sales:
calculations:

3.

Chapter 2 17
Name Date Class

Problem 2-7 Categorizing Forms of Business Organizations (textbook p. 42)

1. 6.
2. 7.
3. 8.
4. 9.
5. 10.

Problem 2-8 Working as an Entrepreneur (textbook p. 42)

Advantage Disadvantage

1. Risking the loss of your savings ________ ________


2. Deciding what you and everyone else needs to do ________ ________
each day
3. Lacking steady wages and employee benets ________ ________
4. Choosing when and where to work ________ ________
5. Keeping the nancial benets of your hard work ________ ________
6. Choosing the people you want to work with ________ ________
7. Paying all the expenses of a new business ________ ________

Copyright by The McGraw-Hill Companies. All rights reserved.

18 Chapter 2
Name Date Class

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.

 Problem 3-9 Determining the Effects of Transactions on the Accounting Equation


 Problem 3-10 Describing Business Transactions
Challenge Problem  Problem 3-11 Completing the Accounting Equation
Winning Complete the exercises on page 73 in your textbook.
Competitive Events
Real-World Complete the following applications on pages 7475 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting  WebQuest

6 19
Chapter 3
Name Date Class

Working Papers for Section Problems


Problem 3-1 Balancing the Accounting Equation (texbook p. 53)

Assets = Liabilities + Owners Equity

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

Problem 3-2 Determining the Effects of Transactions on


the Accounting Equation (texbook p. 59)

Owners
Assets = Liabilities +
Equity

Copyright by The McGraw-Hill Companies. All rights reserved.


Cash in Accounts Computer Office Accounts Jan Swift,
+ + + = +
Trans Bank Receivable Equipment Furniture Payable Capital

1
2
3
4
5
6
Bal.

20 Chapter 3
Name Date Class

Problem 3-3 Determining the Effects of Transactions on


the Accounting Equation (texbook p. 63)

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
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 3-4 Classifying Accounts (texbook p. 68)

1. 5. 9.
2. 6. 10.
3. 7.
4. 8.

Analyze:

Problem 3-5 Completing the Accounting Equation (texbook p. 68)

Assets = Liabilities + Owners Equity


Mike Murray,
Cash in Bank $ 4,500 Accts. Pay. Capital $9,250
Accts. Rec. 1,350
Ofce 5,000

Analyze:

Problem 3-6 Classifying Accounts Within

Copyright by The McGraw-Hill Companies. All rights reserved.


the Accounting Equation (texbook p. 68)
Account Name Balance

(1)

Total
(2)

(3)

22 Chapter 3
Name Date Class

Problem 3-6 (concluded)

Analyze: Assets = Liabilities + Owners Equity


Cash in Accounts Camping Ofce Accounts Ronald Hicks,
+ + + = +
Bank Receivable Equipment Equipment Payable Capital

Problem 3-7 Determining Increases and


Decreases in Accounts (texbook p. 69)

Amount of
Transaction Accounts Affected Classification
Increase (+) or Decrease (-)

1 Cash in Bank Asset + $25,000


Regina Delgado, Capital Owners Equity + $25,000

4
Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

Chapter 3 23
Name Date Class

Problem 3-8 Determining the Effects of Transactions


on the Accounting Equation (texbook p. 70)

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:

Copyright by The McGraw-Hill Companies. All rights reserved.

24 Chapter 3
Name Date Class

Problem 3-9 Determining the Effects of Transactions


on the Accounting Equation (texbook p. 70)

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

Problem 3-10 Describing Business Transactions (texbook p. 71)

1. The owner invested $30,000 in the business.


2.
3.
4.
5.

6.

7.
8.
9.
10.

Analyze:

Problem 3-11 Completing the Accounting Equation (texbook p. 72)

Owners
Assets = Liabilities +
Equity
Accounts Business Accounts Richard Tang,
Cash in Bank + + = +
Receivable Equipment Payable Capital

Copyright by The McGraw-Hill Companies. All rights reserved.


1 + $ 2,000 + $ 1,000 = $ 500 + $ 7,500
2 $ 3,000 + $ 9,000 + = $ 2,000 + $ 16,000
3 $ 8,000 + $ 1,000 + $ 10,000 = + $ 15,000
4 $ 4,000 + + $ 4,000 = $ 1,000 + $ 17,000
5 $ 9,000 + $ 7,000 + $ 6,000 = $ 5,000 +
6 $ 10,000 + $ 14,000 + = $ 6,000 + $ 32,000
7 $ 6,000 + $ 4,000 + $ 10,000 = + $ 15,000
8 + $ 5,000 + $ 9,000 = $ 1,000 +

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
Name Date Class

Entering Data into a Spreadsheet


Navigation. As you work with a template, you will be required to enter
text and numbers into various cells to complete a problem. When instructed
to enter information, use the mouse or the arrow keys to move the cell
pointer to the specied cell, type the data (text or numbers), and then press
the Enter key.
Types of Data. There are two kinds of data that you will enternumbers
and labels. When you type 425 the software knows that you are entering a
number. Numeric data begins with a digit (09) or a symbol (+ ( . @ $ # or
any currency symbol). All other symbols signify a label.
Cell Protection. Depending on the spreadsheet program you are using,
many of the cells are protected to prevent you from accidentally erasing
information. If you attempt to type a number or label into a protected cell,
the spreadsheet program displays a message indicating the cell is locked or
protected.
Errors. If you make a mistake while typing the information and you have
not yet pressed Enter, simply use the Backspace key to erase the incorrect
data and retype the entry. When the entry is correct, press Enter to accept
the data. If you notice an error after you press Enter, simply select the cell
and retype the data.
Overows. Sometimes, the data you enter may be too wide to t into one
cell. When you press Enter, the data overows from the current cell into
the next cell. As long as data has not been entered in the adjoining cell, the
entire cell contents appear on the work sheet.
Placeholders. Placeholders appear in each template to identify where to
type your name and the date. Simply move to the cell with (name) and type
your name. Then move to the cell with (date) and type the date.
Save a Spreadsheet
After you complete a problem, or if you need to save your work before you nish an
activity, use the Save option from the File menu. When closing the problem, you
will be asked to save your work to the network or to oppy disks. It is good prac-
tice to always move your cursor to cell A1 before saving your spreadsheet. This will
ensure that your spreadsheet opens in the rst cell when your reopen it. For many
spreadsheet applications, a shortcut for moving to cell A1 is by holding down the

Copyright by The McGraw-Hill Companies. All rights reserved.


Ctrl key while pressing the Home key. Check your softwares Help le for its spe-
cic shortcut commands.
Print a Spreadsheet
Use your softwares Print command to print your completed spreadsheet. Access
your softwares Help le for detailed printing instructions.
Sometimes a spreadsheet will be too wide to t vertically on an 8" x 11" piece of
paper. If your spreadsheet is too wide to t on an 8-inch wide piece of paper, you
Spreadsheet Guide

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
Complete the Spreadsheet
Step 1 Read the instructions for Problem 3-9 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 Accounting Management System by typing your user
name and password.
Step 5 Under the Problems and Tutorials tab, select template 3-9 from the
Chapter 3 drop-down list. The template should look like the one
shown below.

PROBLEM 3-9
DETERMINING THE EFFECTS OF BUSINESS
TRANSACTIONS ON THE ACCOUNTING EQUATION

(name)
(date)

ASSETS LIABILITIES OWNERS EQUITY

Transaction Cash Accounts Hiking Rafting Office Accounts Juanita Ortega,


in Bank Receivable Equipment Equipment Equipment = Payable + Capital
1
2
3
4
5
6
7
8
9
10

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.

4)0 Depending on the spreadsheet program you are using, the


spreadsheet templates may be formatted to protect you from
accidentally erasing information in selected cells. For example,
the column headings in the spreadsheet for Problem 3-9
are protected. If you attempt to type a number or label into a
protected cell, the spreadsheet program displays a message
indicating that the cell is locked or protected. Simply move to
the correct cell and retype the information.

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 9 Next, move the cell pointer to cell J12. Type 60000 in cell J12 to
record the increase in Juanita Ortega, Capital. Again, do not include
a dollar sign or a comma as part of the cell entrythe spreadsheet
template will automatically format the data when it is entered. Move
the cell pointer to cell J23. Notice that the spreadsheet automatically
calculates the balance in each account as you enter the data.
Step 10 To check your work, look at rows 26 through 30 in column D. Total
Spreadsheet Guide

assets equal $60,000. Total liabilities plus owners equity also equal
$60,000. The accounting equation is in balance.

30 Chapter 3
Name Date Class

Step 11 Analyze the remaining transactions in Problem 3-9 and type the
appropriate data into the spreadsheet template.

4)0 To decrease an account balance, precede the amount entered


by a minus sign. For example, to decrease Cash in Bank by
$3,000, type 3000 in the Cash in Bank column.

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.

4)0 It is good practice to always move your cursor to cell A1 before


saving your spreadsheet. This will ensure that your spreadsheet
opens in the rst cell when you reopen it. For many spread-
sheet applications, a shortcut for moving to cell A1 is by holding
down the Ctrl key while pressing the Home key. Check your
softwares Help le for its specic shortcut commands.

Step 13 Print the completed spreadsheet.

4)0 If your spreadsheet is too wide to t on an 8-inch wide piece


of paper, you can change your print settings to print the work-
sheet landscape. Some spreadsheet applications also allow you
Copyright by The McGraw-Hill Companies. All rights reserved.

to choose a t to page option. This function will reduce the


width and depth of the worksheet to t on one page.

Step 14 Exit the spreadsheet program.


Step 15 In the Close Options window, select the location where you would like
to save your work.
Step 16 Complete the Analyze activity from your textbook for this problem.
Spreadsheet Guide

Chapter 3 31
Name Date Class

What-If Analysis

4)0 Always save your work before performing What-If Analysis. It


is not necessary to save your work after performing What-If
Analysis unless your teacher instructs you to do so. If you are
required to save your work after performing What-If Analysis, be
sure to rename the spreadsheet to avoid saving over your
original work.

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?

Copyright by The McGraw-Hill Companies. All rights reserved.


Spreadsheet Guide

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
Name Date Class

Working Papers for Section Problems


Problem 4-1 Applying the Rules of Debit and Credit (textbook p. 82)

Account Account Increase Decrease Normal


Title Classification Side Side Balance
Cash in Bank Asset Debit Credit Debit

Problem 4-2 Identifying Increases and Decreases in


Accounts (textbook p. 88)
1.a.

b.

2.a.

b.

3.a.

Copyright by The McGraw-Hill Companies. All rights reserved.


b.

34 Chapter 4
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 4-3 Identifying Accounts
Affected by Transactions (textbook p. 94)

1.

2.

3.

4.

Analyze:

Problem 4-4 Using T Accounts to


Analyze Transactions (textbook p. 94)
Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

Chapter 4 35
Name Date Class

Problem 4-5 Analyzing Transactions


into Debit and Credit Parts (textbook p. 95)

Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

36 Chapter 4
Name Date Class

Problem 4-6 Analyzing Transactions


into Debit and Credit Parts (textbook p. 96)
Copyright by The McGraw-Hill Companies. All rights reserved.

Sum of debit balances = Sum of credit balances =

Analyze:

Chapter 4 37
Name Date Class

Problem 4-7 Analyzing Transactions


Recorded in T Accounts (textbook p. 97)

Increase (I) Increase (I)


Trans Account Account
or or Description
No. Debited Credited
Decrease (D) Decrease(D)
Richard
Cash in Richard Tang invested
1 I Tang, I
Bank $15,000 in the business.
Capital

Copyright by The McGraw-Hill Companies. All rights reserved.


8

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

Computer Equipment Hiking Equipment Rafting Equipment


Copyright by The McGraw-Hill Companies. All rights reserved.

0 0 0

Accounts Payable - Accounts Payable - Juanita Ortega,


Peak Equipment Premier Processors Capital

Spreadsheet Guide

0 0 0

SUM OF DEBIT BALANCES $0


SUM OF CREDIT BALANCES $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
Name Date Class

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

4)0 Always save your work before performing What-If Analysis. It


is not necessary to save your work after performing What-If

Copyright by The McGraw-Hill Companies. All rights reserved.


Analysis unless your teacher instructs you to do so. If you are
required to save your work after performing What-If Analysis,
be sure to rename the spreadsheet to avoid saving over your
original work.

If Juanita Ortega purchased a computer for $1,500 cash, what would the balance
Spreadsheet Guide

in the Cash in Bank account be?

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.

Winning Complete the exercises on page 127 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 128129 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting

Chapter 5 41
Name Date Class

Working Papers for Section Problems


Problem 5-1 Applying the Rules of Debit and Credit (textbook p. 110)

Account Increase Decrease Normal


Account Title
Classification Side Side Balance
Cash in Bank Asset Debit Credit Debit

Problem 5-2 Identifying Accounts


Affected by Transactions (textbook p. 116)

1.
2.
3.

Copyright by The McGraw-Hill Companies. All rights reserved.


4.

42 Chapter 5
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 5-3 Identifying Increases
and Decreases in Accounts (textbook p. 122)

1.a.

b.

2.a.

b.

3.a.

b.

Analyze:

Problem 5-4 Using T Accounts to Analyze Transactions (textbook p. 122)

1.
Copyright by The McGraw-Hill Companies. All rights reserved.

2.

3.

4.

Analyze:
Chapter 5 43
Name Date Class

Problem 5-5 Analyzing Transactions


into Debit and Credit Parts (textbook p. 123)

Copyright by The McGraw-Hill Companies. All rights reserved.

44 Chapter 5
Name Date Class

Problem 5-5 (concluded)

Analyze:

Problem 5-6 Analyzing Transactions


into Debit and Credit Parts (textbook p. 124)

(1), (2), (3)


Copyright by The McGraw-Hill Companies. All rights reserved.

Chapter 5 45
Name Date Class

Problem 5-6 (concluded)

(4) Debit Credit


Account Name Balances Balances
$ $

Totals $ $
Analyze:

Copyright by The McGraw-Hill Companies. All rights reserved.


Problem 5-7 Analyzing Transactions (textbook p. 125)

(1), (2), (3)

46 Chapter 5
Copyright by The McGraw-Hill Companies. All rights reserved.
Name

Problem 5-7 (continued)


Date
Class

Chapter 5 47
Name Date Class

Problem 5-7 (concluded)


(4) Account Name Debit Balances Credit Balances
$ $

Totals $ $

Analyze:

Problem 5-8 Completing the Accounting Equation (textbook p. 126)

Owners

Copyright by The McGraw-Hill Companies. All rights reserved.


Assets = Liabilities + Equity Withdrawals + Revenue Expenses
1. $64,400 $ 8,200 $56,300 $ 500 $10,000 $ 9,600
2. 22,150 525 18,800 1,200 12,100
3. 17,500 75 21,650 4,115 3,250
4. 49,450 47,840 1,500 20,300 17,610
5. 21,900 1,150 20,005 950 16,570
6. 72,640 2,790 10,750 67,908 39,749
7. 1,988 41,194 6,196 52,210 42,597
8. 3,840 61,774 40,163 21,637
(Expenses plus withdrawals equal $27,749.)
9. 64,070 49,102 4,875 53,166
(Total owners equity after adding revenue and subtracting expenses and withdrawals is $50,643.)
Analyze:
48 Chapter 5
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. 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.

Problem 5-3 Identifying Increases and Decreases in Accounts


Follow the instructions provided below to print a Chart of Accounts report for
Wilderness Rentals. Although the instructions in your textbook direct you to
analyze the transactions, you will not use Peachtree to complete this analysis.
In the next chapter, however, you will use the Wilderness Rentals general led-
ger accounts to enter transactions.

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.

Information window. (See Figure 5-3A.) liability, equity, income,


Click in the Company Name eld. expense, etc.).
Change the company name by adding your initials as shown
in the gure.

Click OK to
record any
changes to
Add your
the company
initials to the
infomation
company
name

Figure 5-3A Maintain Company Information Window


Chapter 5 49
Name Date Class
Peachtree Guide

Click to record the new company name.

Step 5 Set the system date to January 31, 2010.


.OTES
You must set the
Click the Options menu and choose Change System Date. accounting date each time
Type 1/31/10. you begin working with
Click OK to record the new system date. Peachtree.
Prepare a Report and Proof Your Work
Step 6 Print a Chart of Accounts report.
To print a Chart of Accounts report:

Choose General Ledger from the Reports menu to display the


Select a Report window. (See Figure 5-3B.)

4)0 You can double-click a report title to go directly to that report,


skipping the Options window.

Prints the Displays


selected selected
report report on
the screen
Closes this
window

Select a
Choose the specic
report area report
from this list from
this list

Copyright by The McGraw-Hill Companies. All rights reserved.

Figure 5-3B Select a Report Window with the General Ledger Reports

Select Chart of Accounts in the report list.


Click and then click OK to display the Chart of
Accounts report.
Review the report as shown in Figure 5-3C and then click
to print the report.
Click to close the report window.

Step 7 Review the information shown on Figure 5-3C.


As you can see, the Chart of Accounts report shows the general led-
ger account numbers and account titles for Wilderness Rentals. The
report also includes two other columnsActive? and Account Type.

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

The Active? column includes information that identies whether


or not an account is active. You can post transactions to an active
account, but not to an inactive account. The account type identi-
es the account category (e.g., Cash, Accounts Receivable, Fixed
Assets, EquityRetained Earnings, Equitygets closed, Income, and
Expenses). Peachtree uses this information to group accounts for
nancial reports and to determine which accounts are permanent
and which are temporary when it closes an accounting period.
Analyze Your Work
Step 8 Complete the Analyze activity manually.
End the Session
When you nish the problem or if you must stop at the end of a class period, follow
the instructions given here to end the session.
Step 9 Click the Close Problem button in the Glencoe Smart Guide window
and select a save option as directed by your teacher. Click OK.
Continue from a Previous Session
Copyright by The McGraw-Hill Companies. All rights reserved.

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.

What account types are used by the Peachtree software?


On a separate sheet of paper, list these account types.

4)0 Search the Help Index to learn about the account types.

Chapter 5 51
Name Date Class
Peachtree Guide

Problem 5-4 Using T Accounts to Analyze Transactions


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.

Step 7 Review the information shown on the report.


Analyze Your Work .OTES
Step 8 Complete the Analyze activity manually.
Refer to the instruc-
End the Session tions in Problem 5-3 if
you need help installing a
Step 9 Click the Close Problem button in the Glencoe Smart Guide
problem set, changing the

Copyright by The McGraw-Hill Companies. All rights reserved.


window and select a save option as directed by your teacher. company name, or setting
Click OK. the system date.

Problem 5-5 Analyzing Transactions into Debit and Credit Parts


Follow the instructions provided below to add new general ledger accounts
for Kits & Pups Grooming. You will also learn how to enter the beginning
balance for an account.

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.)

Closes window Saves new


account or
changes to an
Account ID existing account
Deletes existing
Account account
Description
Allows you to
Copyright by The McGraw-Hill Companies. All rights reserved.

Account Type mark an account


as inactive

Peachtree Beginning Balances


displays button
account Displays lists
activity here of accounts
Figure 5-5A Maintain Chart of Accounts Window (Advertising Expense)

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.

Click or press Alt+S to record the new account.

Click to clear the data entry elds in preparation to enter


a new account.

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.

Review the entry. (See Figure 5-5B.)

Copyright by The McGraw-Hill Companies. All rights reserved.


Records
beginning
balances
Cash account
beginning
Accounting balance
period for
beginning
balances Capital
account
beginning
Describes balance
the concept
of the basic
accounting
equation

Figure 5-5B Chart of Accounts Beginning Balances Window

Click to record the beginning balances.

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.

Identify at least one income, one expense, and one


equity account.

Problem 5-6 Analyzing Transactions into Debit and Credit Parts


Follow the instructions provided below to add new general ledger accounts for
Outback Guide Service. You will enter transactions in the next chapter.

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.

Step 5 Add the capital, income, and expense accounts.


Account No. Description Account Type
301 Juanita Ortega, Capital EquityRetained Earnings
302 Juanita Ortega, Withdrawals Equitygets closed
401 Guide Service Revenue Income
505 Maintenance Expense Expenses
515 Rent Expense Expenses
525 Utilities Expense Expenses
Step 6 Click to close the Maintain Chart of Accounts window. .OTES
Prepare a Report and Proof Your Work The withdrawal
account is a temporary
Step 7 Print a Chart of Accounts report. capital account and gets
Step 8 Proof your work and make any corrections, as needed. closed at the end of each
accounting period.
Analyze Your Work
Step 9 Complete the Analyze activity manually.
End the Session
Step 10 Click the Close Problem button in the Glencoe Smart Guide window
and select a save option as directed by your teacher.

Chapter 5 55
Name Date Class
Peachtree Guide

Problem 5-7 Analyzing Transactions


Follow the instructions provided below to add new general ledger accounts for
Showbiz Video. You will enter transactions into the accounts in the next chapter.

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.

4)0 You must abbreviate some account names to t in the


Description eld. For example, use A/R instead of Accounts
Receivable.

Prepare a Report and Proof Your Work


Step 8 Print a Chart of Accounts report.
Step 9 Proof your work and make any corrections, as needed.
Analyze Your Work
Step 10 Complete the Analyze activity manually.
End the Session
Step 11 Click the Close Problem button in the Glencoe Smart Guide window

Copyright by The McGraw-Hill Companies. All rights reserved.


and select a save option as directed by your teacher. Click OK.

Peachtree allows you to enter a budget amount for each


general ledger account. On a separate sheet of paper,
describe why a company would record budget gures.

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.

Problem 5-5 Analyzing Transactions into Debit and Credit Parts


Follow the instructions provided below to add new general ledger accounts for
Kits & Pups Grooming. You will also learn how to enter the beginning balance

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.)

Note that the


backup le
has a .QBB
extension
Copyright by The McGraw-Hill Companies. All rights reserved.

Note that the


restored le
has a .QBW
extension

Figure 5-5A The Restore Company Backup window

Chapter 5 57
Name Date Class

In the Get Company Backup From section, click

le you are restoring is located.


Choose the le name of the problem you want to open. It
will be displayed in the Filename eld.
.
From the Look in: drop-down list, select the drive where the
$/9/5(!6%
!15%34)/.
Q.

Are there any differences
between a manual system
and a computerized system
Click . when you set up a chart of
In the Restore Company Backup To section, accept the le accounts?
name already selected for you by QuickBooks, and A. When you set up a chart
click . of accounts using QuickBooks,
From the Save in: drop-down list, choose the location where you must enter an account
number and a title for each
you want to restore the le.
general ledger account just as
Click . you would in a manual sys-
In the Restore Company Backup window, click . tem. Using a computerized
system such as QuickBooks,
The message Your data has been restored successfully however, you must categorize
will appear. Click . each account by assigning
an account type (e.g., Bank,
Work the Accounting Problem Accounts Receivable, Income,
QuickBooks Guide

Step 3 Review the information in your textbook. Expense, etc.)


Step 4 Add the Advertising Expense general ledger account.
To add a new account:
Choose Chart of Accounts from the Lists menu. The Chart of
Accounts window appears. (See Figure 5-5B.)

Account
types

Account
pull-down
menu

Copyright by The McGraw-Hill Companies. All rights reserved.


Figure 5-5B The Chart of Accounts window

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

Press Tab and type Advertising Expense in the Name eld.


Review the information shown in Figure 5-5C.

Account
type Account
number

Account
name Allows you
to mark an
account as
inactive

QuickBooks Guide
Figure 5-5C The New Account window

Click to enter the next account or to close


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.

4)0 QuickBooks will automatically convert any amount you type as a


round number into dollars and cents. For example, QuickBooks
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.

Chapter 5 59
Name Date Class

Press Tab to move to the as of eld and type 01/01/2010, or


select the date from the calendar icon ( ) next to this eld.
Review the information shown in Figure 5-5D.

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 .

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 8 Review the information shown on the report. (See Figure 5-5E.)

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

End the Session


Step 11 Before you back up your work, it is a common practice to close all
open windows by clicking the in the top right-hand corner of the
window.
Step 12 To back up your work, follow these steps.
Choose Back Up from the File menu.
In the Filename eld, verify that the le name is correct.
(See Figure 5-5F.)

QuickBooks Guide
Copyright by The McGraw-Hill Companies. All rights reserved.

Figure 5-5F The QuickBooks Backup window

Click and select the appropriate drive location to save


your le.
Click .
When you receive the message from QuickBooks that your data has
been backed up successfully, click .

Identify at least one income, one expense, and one


equity account.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Spreadsheet Guide

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

4)0 Remember, do not type a dollar sign or a comma when you


enter the datathe spreadsheet template will automatically
format the data for you.

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

4)0 Always save your work before performing What-If Analysis.


It is not necessary to save your work after performing What-If
Analysis unless your teacher instructs you to do so. If you are
required to save your work after performing What-If Analysis,
be sure to rename the spreadsheet to avoid saving over your
original work.
Copyright by The McGraw-Hill Companies. All rights reserved.

If Liabilities are $50,000, Owners Capital is $39,250, Withdrawals are $1,176,


Revenue is $15,802, and Expenses are $11,660, what are Assets?

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Name 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.

Winning Complete the exercises on page 159 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 160161 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting  WebQuest

Chapter 6 65
Name Date Class

Working Papers for Section Problems


Problem 6-1 Analyzing a Source Document (textbook p. 135)

1.
2.
3.
4.
5.
6.
7.

Problem 6-2 Recording Business Transactions (textbook p. 149)

Step 1
Step 2
Step 3
Step 4
Step 5
Step 6

Problem 6-3 Analyzing Transactions (textbook p. 149)

Account Account General Journal


Trans. Account Classification Increase Decrease Debit Credit

Passenger Van Asset

Copyright by The McGraw-Hill Companies. All rights reserved.


1
Cash in Bank Asset

66 Chapter 6
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 6-4 Recording General Journal Transactions (textbook p. 154)
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

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

Problem 6-5 Recording General Journal Transactions (textbook p. 155)


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

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:

68 Chapter 6
Name Date Class

Problem 6-6 Recording General Journal Transactions (textbook p. 156)


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

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

Problem 6-7 Recording General Journal Transactions (textbook p. 157)


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

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

38 38

39 39

70 Chapter 6
Name Date Class

Problem 6-7 (concluded)


Analyze:

Problem 6-8 Recording General Journal Transactions (textbook p. 158)


Instructions: Use the following source documents to record the transactions for
this business.
NEW MEDIA SUPPLIERS INVOICE NO. NM101
Showbiz Video RECEIPT 14308 San Mateo Blvd.
Los Angeles, CA 90016 DATE: Jan. 7, 20
7575 Ingram Blvd. No. 435 ORDER NO.:
Spokane, WA 99204
Showbiz Video SHIPPED BY: UPS
January 1 20 TO 7575 Ingram Blvd. TERMS: Balance payable
Spokane, WA 99204 in 30 days
RECEIVED FROM Cash Sales $ 3,400.00
QTY. ITEM UNIT PRICE TOTAL
Three thousand four hundred and 00/100 DOLLARS
8 VCRs -- model ALG45 $ 80.00 $ 640.00
FOR VCR Rentals $1,900.00 + Video Tape Rentals $1,500.00 4 13" TV/VCR -- model LX44 100.00 400.00
6 Camcorders -- model GR77 260.00 1,560.00
RECEIVED BY Greg Failla
$2,600.00
Less down payment 600.00
$2,000.00

$ 325.00 No. 1250


DateJanuary 3 20
To Washington Repairs & Service
For Equipment repairs
Showbiz Video INVOICE NO. 1650
Dollars Cents
7575 Ingram Blvd. DATE: Jan. 10, 20
Balance brought forward 11,310 00 Spokane, WA 99204
ORDER NO.:
Add deposits 6/1 3,400 00 Spring Branch School District SHIPPED BY: Katies Kouriers
TO 2023 Sampson Drive TERMS: Payable in 30 days
Spokane, WA 99204
Total 14,710 00
Less this check 325 00 QTY. ITEM UNIT PRICE TOTAL
Balance carried forward 14,385 00 18 Video rental -- History & Government series $100.00 $1,800.00

Palace Films INVOICE NO. PF32


606 Lei Min Street
San Francisco, CA 94133 DATE: Jan. 5, 20
ORDER NO.:
Showbiz Video SHIPPED BY: Freight Systems
TO 7575 Ingram Blvd. TERMS: Payable in 30 days
Spokane, WA 99204
Copyright by The McGraw-Hill Companies. All rights reserved.

QTY. ITEM UNIT PRICE TOTAL


40 Videos X117X205 $ 8.50 $340.00 $ 750.00 No. 1252
DateJanuary 12 20
4 Videos VV27VW29 15.00 60.00
To Computer Horizons
$400.00 For On account

Dollars Cents

Balance brought forward 13,785 00


Add deposits

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

Dollars Cents Showbiz Video RECEIPT


Balance brought forward 14,385 00 7575 Ingram Blvd. No. 436
Spokane, WA 99204
Add deposits

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

RECEIVED BY Greg Failla

Chapter 6 71
Name Date Class

Problem 6-8 (continued)


$ 100.00 No. 1253
DateJanuary 18 20
To Clear Vue Window Cleaners
For Maintenance

Dollars Cents

Balance brought forward 13,035 00


Add deposits 1/15 5,600 00

Total 18,635 00
Less this check 100 00
Balance carried forward 18,535 00

$ 1,000.00 No. 1254


Date January 25 20
To New Media Suppliers
For On account

Dollars Cents

Balance brought forward 18,535 00


Add deposits

Total 18,535 00
Less this check 1,000 00
Balance carried forward 17,535 00

Copyright by The McGraw-Hill Companies. All rights reserved.

72 Chapter 6
Name Date Class

Problem 6-8 (concluded)


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

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Peachtree Guide
Name 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.

Problem 6-4 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Wilderness
Rentals. You will record these transactions using the General Journal Entry
option in the Tasks menu.

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.

numbers, and debit or credit


Add your initials to the company name. amounts. The Peachtree data
Click to record the new company name. entry form even looks like a
manual journal.

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).

Figure 6-4A Maintain Company Information Window

Chapter 6 75
Peachtree Guide
Name Date Class

Step 5 Set the system date to January 31, 2010.


Click the Options menu and choose Change System Date.
Type 1/31/10.
Click OK to record the new system date.
Work the Accounting Problem
The instructions in this section explain how to enter and post general .OTES
journal transactions using Peachtree.
Changing the system
Step 6 Review the transactions for Wilderness Rentals shown in date in Peachtree does not
your textbook. affect the clock settings for
Step 7 Enter the transaction for January 1. your computer.

January 1, Wrote Check 310 for the part-time secretarys


salary, $270.
To enter the general journal transaction:
Select General Journal Entry from the Tasks menu to display
the General Journal Entry window.
Type 1/1/10 and press the Tab key to record the transaction date
in the Date eld.
Make sure that Peachtree shows 2010 for the year. If not, close the
window without recording the transaction and change the system
date as outlined in the Begin a Session instructions.

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

Copyright by The McGraw-Hill Companies. All rights reserved.


use these keys 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, Peachtree displays a list of the
general ledger accounts and highlights the rst account that matches
what you have entered. This feature is helpful if you do not know
an account number. 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, Peachtree highlights the rst
account that begins with this digit. From this point, you can scroll
through the list to locate the account you need. Note: This feature
might be disabled if your teacher has changed the Peachtree
preferences.
Type Part-time secretarys salary for the description.

76 Chapter 6
Peachtree Guide
Name Date Class

Type 270 in the Debit eld to record the debit to Salaries


Expense.

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.

Press Tab to move to the GL Account eld on the next line.


Click to display a Lookup list that shows the general ledger
account numbers.
Use the arrow keys or the mouse to select 101 Cash in Bank.
Click or press Enter to select this account.
The Part-time secretarys salary description is lled in by
Peachtrees Automatic eld completion feature.
Move to the Credit eld and type 270.
Verify that the Out of Balance amount is 0.00. If it does not,
check the transaction amounts. .OTES
Proof the information you just recorded. Check the account You do not have to
numbers, descriptions, and amounts. If you notice a mistake, enter information in the
move to that eld and make the correction. Compare the Job eld. It is used to link
information on your screen to the completed transaction a transaction to a specic
shown in Figure 6-4B. job or project.

Date Debit amount


Source Identies whether
document account will be
reference increased or
Copyright by The McGraw-Hill Companies. All rights reserved.

Account decreased
number
Account
name Credit amount

Out of Balance
amount must be
zero (0.00) to post
an entry

Figure 6-4B Completed General Journal Entry (January 1, Check 310)

Click to post the transaction.

When you post a general journal transaction, Peachtree


automatically updates the general ledger accounts.

Chapter 6 77
Peachtree Guide
Name Date Class

Step 8 Enter the remaining transactions for the month.


IMPORTANT: If you notice a mistake after you have posted an entry,
make a note to correct the entry after you have recorded all of the
transactions. Instructions to edit a general journal entry are given in
the next section.
For each transaction:
Type the date. Use the year 2010.
Type the source document reference.
Type the number of the account debited.
Type a description.
Type the amount of the debit.
Type the number of the account credited.
Type a description.
Type the amount of the credit.
Verify that the Out of Balance total is 0.00.
Proof your work.
Save the entry.

Step 9 Click to close the General Journal Entry window.

Prepare a Report and Proof Your Work


After you have entered the transactions, the next step is to print a report and proof
your work. This section explains how to print a General Journal report. You will also
learn how to edit a general journal entry.
Step 10 Print a General Journal report.
To print a General Journal report:
Select General Ledger from the Reports menu to display the
Select a Report window. (See Figure 6-4C.)

4)0 As an alternative, you can click the navigation aid


and then choose the General Journal report to go directly to

Copyright by The McGraw-Hill Companies. All rights reserved.


the report.

Select General Journal in the report list.


Click , and then click OK to display the General Journal report.
Review the report as shown in Figure 6-4D, and then click to
print the report.
Click to close the report window.

Step 11 Proof the information shown on Figure 6-4D.


Find the beginning balance (BEGBAL) entry for $20,000 on the
General Journal report. This entry was included as part of the problem
set le for Wilderness Rentals, to record the owners initial investment.
As you complete other problems using Peachtree, you may notice
other entries with a BEGBAL reference. These entries are used to estab-
lish the beginning balances for various general ledger accounts, but
will not affect your work.

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

Figure 6-4D General Journal 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

Figure 6-4E Select General Journal Entry Window

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 14 Select General Ledger from the Reports menu to display the
Select a Report window.
Step 15 Double-click the General Ledger report title to display the report.
Step 16 Locate the Cash in Bank account on the General Ledger report. What
is the sum of the credits to this account during January?
End the Session
Step 17 Click the Close Problem button in the Glencoe Smart Guide window,
and select a save option as directed by your teacher.
Continue from a Previous Session
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.

80 Chapter 6
Peachtree Guide
Name Date Class

On a separate sheet of paper, answer the following


questions: How do you enter a beginning balance for a
general ledger account? Why would a company need to
enter beginning balances?

4)0 Search Peachtree Help to learn how to enter beginning balances.

Problem 6-5 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Hot Suds Car
Wash. Use the General Journal Entry option to record the transactions for the
month of January.

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.

4)0 While viewing a General Journal report, you can double-click on


an entry to display it in the General Journal Entry window. You
can edit the transaction and then close the window to see
an updated report.

Chapter 6 81
Peachtree Guide
Name Date Class

Analyze Your Work


Step 11 Print a General Ledger report.
Step 12 Locate the General Ledger revenue account that has no entries listed.
End the Session
Step 13 Click the Close Problem button in the Glencoe Smart Guide window.
Step 14 If your teacher has asked you to check your solution, select Check my
answer to this problem. Review, print, and close the report.
Step 15 Click the Close Problem button. In the Close Options window,
select the save option as directed by your teacher. Click OK.

On a separate sheet of paper, answer the following


questions: Why does the General Journal Entry form
include a Job eld? How might a company use the
information recorded in this eld?

Problem 6-6 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Kits & Pups
Grooming. Follow the instructions provided to record the transactions for the
month of January.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


4)0 Check the Out of Balance and Totals amounts for each entry
before you save it.

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 Print a General Ledger report and 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.

82 Chapter 6
Peachtree Guide
Name Date Class

Problem 6-7 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Outback
Guide Service. Follow the instructions provided to record the transactions for the
month of January.

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

Figure 6-7A General Journal Entry With Multi-Part Entry

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.

Chapter 6 83
Peachtree Guide
Name Date Class

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.
Step 8 If your teacher has asked you to check your solution, select Check my
answer to this problem. Review, print, and close the report.
Step 9 Click the Close Problem button. From the Close Options window,
select a save option as directed by your teacher. Click OK.

Problem 6-8 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Showbiz Video.
Follow the instructions provided to record the transactions for the month of January.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


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, choose the General Journal Entry
option. Click the Open button, and select the entry you want to update. Make
the changes, and post the corrected transaction. Peachtree automatically applies
the corrections. To delete an entry, click the Delete button when the transac-
tion is displayed in the General Journal Entry window.

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.

Problem 6-4 Recording General Journal Transactions


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.

Company menu to display the General Journal Entry


window. (Click OK when the Assigning Numbers to .OTES
Journal Entries window appears.) When you are
Type 01/01/10 or select the date using the Calendar entering transactions,
button. Press the Tab key to record the transaction date QuickBooks automatically
in the Date eld. lls in the date of the last
transaction as the date of
a new transaction. Make
sure to manually change
the date.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Press Tab twice to move to the Memo eld.
Type Part-time secretarys salary for the description,
and press Tab twice to move to the Account eld on the .OTES
next line. You do not have to
Type 101 in the Account eld to specify Cash in Bank, enter information in the
and press Tab twice. Name eld. It is used to
Type 270 as the amount in the Credit eld and press Tab. link a transaction to a spe-
Type Part-time secretarys salary for the description in cic customer or vendor.
the Memo eld.
Verify that the entire entry has been recorded.
Proof the information you just recorded. Check the account num-
bers, descriptions, and amounts. 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 6-4A.

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)

Click to post the transaction and exit the window,


or to post the transaction and remain in the
window. Click if you need to erase the entire
transaction without posting it.
When you post a general journal transaction, QuickBooks
automatically updates the general ledger accounts.
Step 5 Enter the remaining transactions for the month.
IMPORTANT: If you notice a mistake after you have posted an entry,
make a note to correct the entry after you have recorded all of the
Copyright by The McGraw-Hill Companies. All rights reserved.

transactions. Instructions to edit a general journal entry are given in


the next section.
For each transaction:
Type the date. Use the year 2010.
Type the source document reference.
Type the number of the account debited.
Type the amount of the debit.
Type a description.
Type the number of the account credited.
Type the amount of the credit.
Type a description.
Proof your work.
Save the entry. (If the Tracking Fixed Assets on Journal Entries
window appears, click OK.)

Chapter 6 87
Name Date Class

4)0 When entering a transaction involving a customer or vendor, you


will need to select either the Accounts Receivable or Accounts
Payable account, and then select the name of the customer or
vendor in the Name eld.

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

Select Journal. (See Figure 6-4B.)

Accountant &
Taxes reports

Copyright by The McGraw-Hill Companies. All rights reserved.


Figure 6-4B The Reports Menu With the Accountant & Taxes Submenu

Press Tab and type 01/01/10 in the From eld.


Press Tab and type 01/31/10 in the To eld.
Press Tab to display the report.

88 Chapter 6
Name Date Class

Review the report as shown in Figure 6-4C, and then click


to print the report.

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.

Step 8 Proof the information shown on the report.


Find the beginning balance (Deposit) entry for $20,000 on the Journal
report. This entry was included as part of the problem set le for
Wilderness Rentals, to record the owners initial investment. As you
complete other problems using QuickBooks, you may notice other
entries listed as Deposit transaction types. These entries are used to
establish the beginning balances for various general ledger accounts,
but will not affect your work.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


End the Session
Step 17 It is recommended that you back up your work for this session.

On a separate sheet of paper, answer the following


questions: How do you enter a beginning balance for
a general ledger account? Why would a company need
to enter beginning balances?

4)0 Search QuickBooks Help to learn how to enter beginning


balances.

90 Chapter 6
Name Date Class

Problem 6-5 Recording General Journal Transactions


Review the accounts and the transactions listed in your textbook for Hot Suds Car
Wash. Use the Make General Journal Entries option to record the transactions
for the month of January.

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.

4)0 While viewing a Journal report, you can double-click on an


entry to display it as an account register. Double click the
Copyright by The McGraw-Hill Companies. All rights reserved.

General Journal type to open the transaction in the Make


General Journal Entries window and edit it, if necessary.

Analyze Your Work


Step 8 Select Accountant & Taxes from the Reports menu. Select
General Ledger.
Step 9 Enter 01/01/2010 in the From eld and 01/31/2010 in To eld.
Step 10 Scroll down the General Ledger, and locate the revenue account that
has no entries listed.
Step 11 Click the button to close the report without memorizing it.
End the Session
Step 12 It is recommended that you back up your work for this session.

Chapter 6 91
Name Date Class

On a separate sheet of paper, answer the following


questions: Why does the Make General Journal Entries
form include a Name eld? How might a company use
the information recorded in this eld?

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

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.

 Problem 7-6 Preparing a Trial Balance


 Problem 7-7 Journalizing and Posting Business Transactions
 Problem 7-8 Journalizing and Posting Business Transactions
Challenge Problem  Problem 7-9 Recording and Posting Correcting Entries

Winning Complete the exercises on page 189 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 190191 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting

Chapter 7 93
Name Date Class

Working Papers for Section Problems


Problem 7-1 Opening Ledger Accounts (textbook p. 167)

GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

94 Chapter 7
Name Date Class

Problem 7-2 Posting from the


General Journal to the Ledger (textbook p. 175)

GENERAL JOURNAL PAGE 1


.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 20 1

2 May 1 Cash in Bank 10 0 0 0 00 2

3 David Serlo, Capital 10 0 0 0 00 3

4 Memorandum 101 4

5 5

6 6

7 7

GENERAL LEDGER (PARTIAL)


ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT David Serlo, Capital ACCOUNT NO. 301


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

Chapter 7 95
Name Date Class

Problem 7-3 Analyzing a Source Document (textbook p. 181)

FUNTIME MEMORANDUM 47
AMUSEMENT ARCADE

TO: Accounting Clerk


FROM: Dan Vonderhaar
DATE: May 20, 20
SUBJECT: Correction of error

On May 10, we purchased an office copier for $1,500. I noticed in


the general journal that the entry was recorded and posted to the
Computer Equipment account. Please record the necessary entry to
correct this error.

GENERAL JOURNAL PAGE 6


.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 20 1

2 May 10 Computer Equipment 120 1 5 0 0 00 2

3 Cash in Bank 101 1 5 0 0 00 3

4 Check 8099 4

5 5

6 6

7 7

8 8

9 9

GENERAL LEDGER (PARTIAL)


ACCOUNT Ofce Equipment ACCOUNT NO. 115

Copyright by The McGraw-Hill Companies. All rights reserved.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
May 1 Balance 7 0 0 00

ACCOUNT Computer Equipment ACCOUNT NO. 120


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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

Problem 7-4 Recording and Posting a Correcting Entry (textbook p. 181)


GENERAL JOURNAL PAGE 5
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 20 1

2 July 3 Rent Expense 530 3 0 0 00 2

3 Cash in Bank 101 3 0 0 00 3

4 Check 1903 4

5 5

6 6

7 7

8 8

9 9

GENERAL LEDGER (PARTIAL)


ACCOUNT Advertising Expense ACCOUNT NO. 502
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
July 1 Balance 2 6 0 0 00

ACCOUNT Rent Expense ACCOUNT NO. 530


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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

Working Papers for End-of-Chapter Problems


Problem 7-5 Posting General Journal Transactions (textbook p. 186)
GENERAL JOURNAL PAGE
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 20 1

2 Mar. 1 Cash in Bank 5 0 0 0 00 2

3 Ronald Hicks, Capital 5 0 0 0 00 3

4 Memorandum 21 4

5 3 Ofce Equipment 3 0 0 0 00 5

6 Accts. Pay.Digital Tech Computers 3 0 0 0 00 6

7 Invoice 500 7

8 4 Camping Equipment 2 5 0 0 00 8

9 Accts. Pay.Adventure Equip. 2 5 0 0 00 9

10 Invoice 318 10

11 6 Ofce Equipment 1 0 0 00 11

12 Ronald Hicks, Capital 1 0 0 00 12

13 Memorandum 22 13

14 8 Cash in Bank 6 0 0 0 00 14

15 Equipment Rental Revenue 6 0 0 0 00 15

16 Receipt 226 16

17 10 Accts. Pay.Digital Tech Computers 1 5 0 0 00 17

18 Cash in Bank 1 5 0 0 00 18

19 Check 461 19

20 12 Accts. Rec.Helen Katz 1 0 0 0 00 20

21 Equipment Rental Revenue 1 0 0 0 00 21

22 Sales Invoice 354 22

Copyright by The McGraw-Hill Companies. All rights reserved.


23 15 Ronald Hicks, Withdrawals 2 0 0 0 00 23

24 Cash in Bank 2 0 0 0 00 24

25 Check 462 25

26 19 Accts. Pay.Adventure Equip. 1 2 0 0 00 26

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

30 Accts. Rec.Helen Katz 1 0 0 0 00 30

31 Receipt 227 31

32 29 Accts. Rec.Polk and Co. 2 4 0 0 00 32

33 Equipment Rental Revenue 2 4 0 0 00 33

34 Sales Invoice 355 34

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
Name Date Class

Problem 7-5 (continued)


GENERAL LEDGER
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Accounts ReceivableHelen Katz ACCOUNT NO. 105


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Accounts ReceivablePolk and Co. ACCOUNT NO. 110


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT Ofce Equipment ACCOUNT NO. 120


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Camping Equipment ACCOUNT NO. 125


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Chapter 7 99
Name Date Class

Problem 7-5 (concluded)


ACCOUNT Accounts PayableAdventure Equipment Inc. ACCOUNT NO. 201
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Accounts PayableDigital Tech Computers ACCOUNT NO. 203


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Ronald Hicks, Capital ACCOUNT NO. 301


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Ronald Hicks, Withdrawals ACCOUNT NO. 305


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT Equipment Rental Revenue ACCOUNT NO. 401
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Advertising Expense ACCOUNT NO. 501


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Analyze:

100 Chapter 7
Name Date Class

Problem 7-6 Preparing a Trial Balance (textbook p. 186)


GENERAL LEDGER
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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

ACCOUNT Accounts ReceivableValley Auto ACCOUNT NO. 110


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 2 0 0 0 00
12 G1 1 0 0 0 00 1 0 0 0 00

ACCOUNT Detergent Supplies ACCOUNT NO. 120


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 1 5 0 0 00
17 G1 5 0 0 00 2 0 0 0 00

ACCOUNT Car Wash Equipment ACCOUNT NO. 135


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Copyright by The McGraw-Hill Companies. All rights reserved.

Mar. 1 Balance 2 0 0 0 0 00

ACCOUNT Accounts PayableAllen Vacuum Systems ACCOUNT NO. 201


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 1 0 0 0 00
31 G2 5 0 0 00 5 0 0 00

ACCOUNT Regina Delgado, Capital ACCOUNT NO. 301

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

Problem 7-6 (continued)


ACCOUNT Regina Delgado, Withdrawals ACCOUNT NO. 305
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 2 0 0 0 00
31 G2 2 0 0 0 00 4 0 0 0 00

ACCOUNT Income Summary ACCOUNT NO. 310


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Wash Revenue ACCOUNT NO. 401


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 4 0 0 0 00
31 G2 3 5 0 0 00 7 5 0 0 00

ACCOUNT Wax Revenue ACCOUNT NO. 405


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 5 0 0 00

Copyright by The McGraw-Hill Companies. All rights reserved.


31 G2 8 0 0 00 1 3 0 0 00

ACCOUNT Interior Detailing Revenue ACCOUNT NO. 410


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 1 0 0 0 00
31 G2 2 0 0 00 1 2 0 0 00

ACCOUNT Utilities Expense ACCOUNT NO. 530


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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

Problem 7-7 Journalizing and


Posting Business Transactions (textbook p. 186)

GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

104 Chapter 7
Name Date Class

Problem 7-7 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Chapter 7 105
Name Date Class

Problem 7-7 (continued)


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

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

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

Problem 7-8 Journalizing and


Posting Business Transactions (textbook p. 187)

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

RECEIVED BY Juanita Ortega


QTY. ITEM UNIT PRICE TOTAL
3 Daypacks -- DP41714-0 $100.00 $300.00
2 Backpacks -- BP43714-1 150.00 300.00
$600.00

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Outback Guide Service SHIPPED BY: Pick up
TO 705 Fernhill Road TERMS: Payable in 60 days
Encinitas, CA 92024

QTY. ITEM UNIT PRICE TOTAL


1 Computer system -- IEF407 $2,800.00 $2,800.00
RECEIPT
Outback Guide Service No. 314
705 Fernhill Road
Encinitas, CA 92024
March 5 20
RECEIVED FROM Louise Wicker & Dudley Hartel $ 135.00
One hundred thirty-five and 00/100 DOLLARS

FOR Guide Service

RECEIVED BY Juanita Ortega


RECEIPT
Outback Guide Service No. 310
705 Fernhill Road
Encinitas, CA 92024
March 2 20
RECEIVED FROM Cathy & Jonathon Smith $ 135.00
One hundred thirty-five and 00/100 DOLLARS

FOR Guide Service

RECEIVED BY Juanita Ortega

108 Chapter 7
Name Date Class

Problem 7-8 (continued)


$ 1,400.00 No. 654
RECEIPT Date March 18 20
Outback Guide Service No. 315 To Premier Processors

705 Fernhill Road For On account


Encinitas, CA 92024 Dollars Cents
March 7 20
Balance brought forward 19,500 00
RECEIVED FROM Greg & Ann Ingram $ 135.00
Add deposits
One hundred thirty-five and 00/100 DOLLARS

FOR Guide Service Total 19,500 00


Less this check 1,400 00
RECEIVED BY Juanita Ortega
Balance carried forward 18,100 00

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

$ 500.00 No. 655


INVOICE NO. 352
DateMarch 27 20
Outback Guide Service DATE: March 12, 20
705 Fernhill Road, Encinitas, CA 92024 To Live TV
ORDER NO.: For Ad
Podaski Systems Inc. SHIPPED BY:
Dollars Cents
TO 115 Beach Blvd. TERMS: Payment due
San Diego, CA 92103 upon receipt Balance brought forward 18,100 00
Add deposits 2/22 900 00
DATE SERVICE AMOUNT
3/10/ Group rafting trip $900.00
Total 19,000 00
Less this check 500 00
Balance carried forward 18,500 00

$ 600.00 No. 656


DateMarch 28 20
To Peak Equipment Inc.
For On account
Copyright by The McGraw-Hill Companies. All rights reserved.

Dollars Cents
$ 800.00 No. 653
DateMarch 15 20
Balance brought forward 18,500 00
To Cash Add deposits
For Personal use

Dollars Cents Total 18,500 00


Balance brought forward 20,300 00 Less this check 600 00
Add deposits Balance carried forward 17,900 00

Total

Less this check 800 00


Balance carried forward 19,500 00

Chapter 7 109
Name Date Class

Problem 7-8 (continued)


GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

110 Chapter 7
Name Date Class

Problem 7-8 (continued)

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Chapter 7 111
Name Date Class

Problem 7-8 (continued)


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

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

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

Problem 7-9 Recording and Posting Correcting Entries (textbook p. 188)


GENERAL JOURNAL PAGE 21
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 20 1

2 Mar. 3 Ofce Furniture 135 1 2 5 00 2

3 Cash in Bank 101 1 2 5 00 3

4 Check 1401 4

5 5 Cash in Bank 101 4 0 0 00 5

6 Accts. Rec.James Coletti 110 4 0 0 00 6

7 Receipt 602 7

8 7 Accts. Pay.Broad Street Ofce Supply 201 2 0 0 00 8

9 Cash in Bank 101 2 0 0 00 9

10 Check 1402 10

11 9 Ofce Furniture 135 5 0 0 00 11

12 Cash in Bank 101 5 0 0 00 12

13 Check 1403 13

14 13 Greg Failla, Capital 301 1 2 0 0 00 14

15 Cash in Bank 101 1 2 0 0 00 15

16 Check 1404 16

17 17 Cash in Bank 101 2 0 0 0 00 17

18 Greg Failla, Capital 301 2 0 0 0 00 18

19 Receipt 603 19

20 19 Cash in Bank 101 7 5 00 20

21 Accts. Rec.Shannon Flannery 113 7 5 00 21

22 Receipt 604 22
20 Cash in Bank 101 1 0 0 00

Copyright by The McGraw-Hill Companies. All rights reserved.


23 23

24 Accts. Rec.James Coletti 110 1 0 0 00 24

25 Receipt 605 25

26 24 Utilities Expense 530 7 5 00 26

27 Cash in Bank 101 7 5 00 27

28 Check 1405 28

29 27 Cash in Bank 101 3 0 0 0 00 29

30 Greg Failla, Withdrawals 305 3 0 0 0 00 30

31 Memorandum 40 31

32 29 Cash in Bank 101 1 0 0 0 00 32

33 VCR Rental Revenue 405 1 0 0 0 00 33

34 Receipt 606 34

35 35

36 36

114 Chapter 7
Name Date Class

Problem 7-9 (continued)


GENERAL LEDGER
ACCOUNT Cash in Bank ACCOUNT NO. 101

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

ACCOUNT Accounts ReceivableShannon Flannery ACCOUNT NO. 113


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 3 0 0 00
19 G21 5 7 00 2 4 3 00

ACCOUNT Ofce Supplies ACCOUNT NO. 120


Copyright by The McGraw-Hill Companies. All rights reserved.

POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 1 2 0 00

ACCOUNT Ofce Furniture ACCOUNT NO. 135


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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
Name Date Class

Problem 7-9 (continued)


ACCOUNT Accounts PayableBroad Street Ofce Supply ACCOUNT NO. 201
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 1 Balance 2 2 0 0 00

ACCOUNT Greg Failla, Capital ACCOUNT NO. 301


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

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

ACCOUNT Greg Failla, Withdrawals ACCOUNT NO. 305


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 27 G21 3 0 0 0 00 3 0 0 0 00

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT Video Rental Revenue ACCOUNT NO. 401
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT VCR Rental Revenue ACCOUNT NO. 405


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Mar. 29 G21 1 0 0 0 00 1 0 0 0 00

116 Chapter 7
Name Date Class

Problem 7-9 (concluded)


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

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 7 117
Name

118 Chapter 7
Notes
Date
Class

Copyright by The McGraw-Hill Companies. All rights reserved.


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 General Ledger report.
2. Print a General Ledger Trial Balance report.
3. Make corrections to General Journal entries.

Problem 7-5 Posting General Journal Transactions


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

Analyze Your Work .OTES


Step 5 Use the General Ledger report to complete the Credit balances
Analyze activity shown in your textbook. appear as negative
amounts on a General
Ledger report.
Chapter 7 119
Name Date Class
Peachtree Guide

End the Session


When you nish the problem or if you must stop at the end of a class period,
follow the instructions given here to end the session.
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
Click OK.
Continue from a Previous Session
If you want to continue working on a problem that you did not complete in a
previous session, follow Step 1 on the previous page. If you saved your work to the
network, the management system will retrieve your les from that session. If you
saved your work to a oppy, insert the oppy. Your les will be retrieved from the
oppy disk.

How do you print a General Ledger report with summary


information only? Record your answer on a separate sheet
of paper.

4)0 Explore the Help Index. Search for information on how to change
the options for a General Ledger report.

Problem 7-6 Preparing a Trial Balance


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Hot Suds Car Wash (Prob. 7-6).
Step 2 Rename the company and set the system date to March 31, 2010.

Copyright by The McGraw-Hill Companies. All rights reserved.


Prepare a Report and Proof Your Work
Step 3 Print a General Ledger Trial Balance report.
Step 4 Review the information shown on the report.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

Using Peachtree Help, learn about ltering accounts on a


report. Display and print a General Ledger Trial Balance
report showing only the asset accounts.

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.

Answer the following question on a separate sheet of paper:


How do you print a General Ledger report for only one
account?

Chapter 7 121
Name Date Class
Peachtree Guide

Problem 7-8 Journalizing and Posting Business Transactions


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Outback Guide Service (Prob. 7-8).
Step 2 Rename the company and set the system date to March 31, 2010.
Work the Accounting Problem
Step 3 Record 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.

4)0 While viewing a General Journal report, you can double-click on


a transaction to display the General Journal Entry window where
you can edit that transaction. Saving the correction automatically
updates the General Journal report.

Step 5 Print a General Ledger report summarized by transaction.


Step 6 Print a General Ledger Trial Balance.
Analyze Your Work
Step 7 Complete the Analyze activity.
End the Session
Step 8 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
Click OK.

Can you customize a report, such as the General Journal

Copyright by The McGraw-Hill Companies. All rights reserved.


report, to make more space for selected elds? Explain your
answer on a separate sheet of paper. Also, print a General
Journal report so that the information in the Reference
column is not truncated.

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.

my answer to this problem. 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.

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

Copyright by The McGraw-Hill Companies. All rights reserved.


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 General Ledger report.
2. Print a Trial Balance report.
3. Make corrections to General Journal entries.

Problem 7-5 Posting General Journal Transactions


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:

Click to open the Modify Report: General Ledger


Copyright by The McGraw-Hill Companies. All rights reserved.

option. (See Figure 7-5A.)


Scroll down in the Columns section until you nd Debit.
Click on Debit. A checkmark will appear to the left of this item.
Scroll down again until you nd Credit.
Click on Credit to mark it with a checkmark.
Scroll down the Columns section again to nd Amount. This item
already has a checkmark.
Click on Amount to remove the checkmark.
Scroll up the Columns section and remove the checkmark from the
Name and the Memo items.
Click on the Advanced button.
Select the In Use radio button in the Advanced Options window to
display only the accounts with activity, and click OK.
Click OK in the Modify Report window.
To print the General Ledger, click .

Chapter 7 125
Name Date Class

Scroll down
to check or
uncheck the
items you
want to display
on a report
QuickBooks Guide

Figure 7-5A The Modify Report: General Ledger window

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

Copyright by The McGraw-Hill Companies. All rights reserved.


button
Posting
Account reference
number
and name
Transaction Beginning
type balance
(journal
reference)
Ending
Posting account
date balance
Figure 7-5B The General Ledger report
Analyze Your Work
Step 5 Use the General Ledger report to complete the Analyze activity.

126 Chapter 7
Name Date Class

End the Session


Step 6 After completing the Analyze Your Work activity, close all open
reports and windows by clicking the in the top right-hand corner
of each window. If you are prompted to memorize a report, click No.
Step 7 It is recommended that you back up your work for this session.

How do you print a General Ledger report that displays


the debit and credits in each account? Record your
answer on a separate sheet of paper.

Problem 7-6 Preparing a Trial Balance


INSTRUCTIONS
Begin a Session

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.

Using QuickBooks Help, learn about ltering accounts on


a report. Display and print a Trial Balance showing only
the asset accounts.

Chapter 7 127
Name Date Class

Problem 7-7 Journalizing and Posting Business Transactions


INSTRUCTIONS
Begin a Session
Step 1 Launch the QuickBooks Pro 2005 software.
Step 2 Restore Problem 7-7.QBB le.
Work the Accounting Problem .OTES
Step 3 Record all of the March transactions using the Make QuickBooks will
General Journal Entries option and 2010 as the year. shorten certain elds on
a report depending on the
Prepare a Report and Proof Your Work space available.
Step 4 Print a Journal report and proof your work.
Step 5 Print a General Ledger report.
Step 6 Print a Trial Balance report.

4)0
QuickBooks Guide

While viewing a report, you can click to change


the report options.

Analyze Your Work


Step 7 Complete the Analyze activity.
End the Session
Step 8 It is recommended that you back up your work for this session.

Answer the following question on a separate sheet of


paper: How do you print a General Ledger report for
only one account?

Copyright by The McGraw-Hill Companies. All rights reserved.

128 Chapter 7
Name Date Class

MINI PRACTICE SET


Canyon.com Web Sites
1
CHART OF ACCOUNTS

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.

508 Utilities Expense

Mini Practice Set 1 129


Name Date Class

Mini Practice Set 1 (textbook p. 192)


Instructions: Use the following source documents to record the transactions for this practice set.

Canyon.com Web Sites Computer Specialists Inc. INVOICE NO. WS4658421


CCW
MEMORANDUM 1
717 E. Colorado Blvd., #1 1231 Reseda Blvd., #2A DATE: May 7, 20
Reseda, CA 91124
Pasadena, CA 90017 ORDER NO.:
Canyon.com Web Sites SHIPPED BY:
TO: Accounting Clerk TO 717 E. Colorado Blvd., #1 TERMS:
Pasadena, CA 90017
FROM:
DATE: May 1, 20 QTY. ITEM UNIT PRICE TOTAL
SUBJECT: Investment
1 Web server $35,000.00 $35,000.00
Please make necessary entry to record Jack Hines investment of
$50,000 into the business.

Canyon.com Web Sites RECEIPT

CCW
Canyon.com Web Sites
CCW

MEMORANDUM 2 717 E. Colorado Blvd., #1 No. 101


717 E. Colorado Blvd., #1 Pasadena, CA 90017
Pasadena, CA 90017
May 9 20
TO: Accounting Clerk
RECEIVED FROM James Market $ 1,000.00
FROM:
DATE: May 2, 20 One thousand and 00/100 DOLLARS
SUBJECT: Additional investment
FOR Web site services
Record additional investment of a desktop computer and printer (office
RECEIVED BY Jack Hines
equipment) worth $3,500 made by Jack Hines.

Canyon.com Web Sites


CCW

INVOICE NO. 101


717 E. Colorado Blvd., #1
DATE: May 11, 20
Pasadena, CA 90017
ORDER NO.:
Andrew Hospital SHIPPED BY:
TO 1314 Sherman Way TERMS:
Van Nuys, CA 91331
Canyon.com Web Sites 101
CCW

717 E. Colorado Blvd., #1 90-7177 QTY. ITEM UNIT PRICE TOTAL


3222
Pasadena, CA 90017 N/A Web site design services $3,000.00 $3,000.00
DATE May 2 20
PAY TO THE
ORDER OF Office Mart $ 125.00

Copyright by The McGraw-Hill Companies. All rights reserved.


One hundred twenty-five and 00/100 DOLLARS

First Bank
MEMO Office supplies Jack Hines
322271779 0710613 101

Service Plus Software Inc. INVOICE NO. 876


Office Systems INVOICE NO. 457 616 Cordova Street, #7 DATE: May 12, 20
9177 California Blvd. DATE: May 3, 20 Glendale, CA 90121
ORDER NO.:
Pasadena, CA 91210 ORDER NO.: Canyon.com Web Sites SHIPPED BY:
Canyon.com Web Sites SHIPPED BY: TO 717 E. Colorado Blvd., #1 TERMS:
TO 717 E. Colorado Blvd., #1 TERMS: Pasadena, CA 90017
Pasadena, CA 90017
QTY. ITEM UNIT PRICE TOTAL
QTY. ITEM UNIT PRICE TOTAL
N/A Software for Web server $10,000.00 $10,000.00
3 Tables $300.00 $ 900.00
4 Swivel Chairs 250.00 1,000.00
1 Fax Machine 800.00 800.00
$2,700.00

130 Mini Practice Set 1


Name Date Class

Mini Practice Set 1 (continued)

Canyon.com Web Sites 102


CCW Canyon.com Web Sites RECEIPT

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

Canyon.com Web Sites 103


CCW

Canyon.com Web Sites

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

First Bank QTY. ITEM UNIT PRICE TOTAL


N/A Design services $2,000.00 $2,000.00
MEMO Personal withdrawal Jack Hines
322271779 0710613 103

Canyon.com Web Sites


CCW

INVOICE NO. 102


717 E. Colorado Blvd., #1
DATE: May 17, 20
Pasadena, CA 90017
ORDER NO.:
Sunshine Products SHIPPED BY:
TO 1213 Oceanview Street TERMS:
Santa Monica, CA 90171

Canyon.com Web Sites RECEIPT


CCW
QTY. ITEM UNIT PRICE TOTAL
N/A Web site design $5,000.00 $5,000.00 717 E. Colorado Blvd., #1 No. 103
Pasadena, CA 90017
May 21 20
RECEIVED FROM Sunshine Products $ 2,500.00
Two thousand five hundred and 00/100 DOLLARS

FOR Payment on account

RECEIVED BY Jack Hines


Copyright by The McGraw-Hill Companies. All rights reserved.

Canyon.com Web Sites 104


CCW

717 E. Colorado Blvd., #1 90-7177


3222
Pasadena, CA 90017
Canyon.com Web Sites 105
CCW

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

322271779 0710613 104 First Bank


MEMO Telephone services Jack Hines
322271779 0710613 105

Mini Practice Set 1 131


Name Date Class

Mini Practice Set 1 (continued)

Canyon.com Web Sites 106 Canyon.com Web Sites 109


CCW

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

First Bank First Bank


MEMO On account Jack Hines MEMO Rent Jack Hines
322271779 0710613 106 322271779 0710613 109

107 Canyon.com Web Sites 110

CCW
Canyon.com Web Sites
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 25 20 DATE May 30 20
PAY TO THE PAY TO THE
ORDER OF Office Systems $ 2,000.00 ORDER OF Jack Hines $ 2,500.00

Two thousand and 00/100


DOLLARS Two thousand five hundred and 00/100 DOLLARS

First Bank First Bank


MEMO On account Jack Hines MEMO Personal withdrawal Jack Hines
322271779 0710613 107 322271779 0710613 110

Canyon.com Web Sites 111


CCW
Canyon.com Web Sites RECEIPT
CCW

717 E. Colorado Blvd., #1 90-7177


717 E. Colorado Blvd., #1 No. 104 3222
Pasadena, CA 90017 Pasadena, CA 90017
DATE May 30 20
May 26 20 PAY TO THE
ORDER OF Computer Specialists Inc. $ 25,000.00
RECEIVED FROM Job Info. Services $ 1,000.00
Twenty-five thousand and 00/100 DOLLARS
One thousand and 00/100 DOLLARS
First Bank
FOR 2 months of Web site services
MEMO On account Jack Hines
RECEIVED BY Jack Hines 322271779 0710613 111

Canyon.com Web Sites 108


CCW

717 E. Colorado Blvd., #1 90-7177


3222
Pasadena, CA 90017

Copyright by The McGraw-Hill Companies. All rights reserved.


DATE May 27 20
PAY TO THE
ORDER OF All Inclusive Group $ 7,000.00

Seven thousand and 00/100 DOLLARS

First Bank
MEMO Membership dues Jack Hines
322271779 0710613 108

132 Mini Practice Set 1


Name Date Class

Mini Practice Set 1 (continued)


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

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

Mini Practice Set 1 133


Name Date Class

Mini Practice Set 1 (continued)


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

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

134 Mini Practice Set 1


Name Date Class

Mini Practice Set 1 (continued)


GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Mini Practice Set 1 135


Name Date Class

Mini Practice Set 1 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

136 Mini Practice Set 1


Name Date Class

Mini Practice Set 1 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Mini Practice Set 1 137


Name Date Class

Mini Practice Set 1 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.

138 Mini Practice Set 1


Name Date Class

Mini Practice Set 1 (continued)


Copyright by The McGraw-Hill Companies. All rights reserved.

Mini Practice Set 1 139


Name Date Class

Mini Practice Set 1 (concluded)


Analyze:

Copyright by The McGraw-Hill Companies. All rights reserved.

140 Mini Practice Set 1


Name Date Class

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.

Figure MP1-A General Journal Entry

4)0 Proof each general journal entry before you post it. Check the
account numbers, descriptions, and amounts.

Prepare a Report and Proof Your Work


Step 9 Print a General Journal report.
Step 10 Proof your work. Make corrections as needed and print a revised
report, if necessary.

Mini Practice Set 1 141


Name Date Class
Peachtree Guide

4)0 While viewing a General Journal report, you can double-click on


an entry to display it in the General Journal Entry window. You
can edit the transaction and then close the window to see an
updated report.

Step 11 Print a General Ledger report.


Step 12 Print a General Ledger Trial Balance.
Analyze Your Work
Step 13 Complete the Analyze activity. .OTES
Step 14 Complete the Audit Test.
Use the reports you
End the Session prepared to complete the
Analyze activity and the
Step 15 Click the Close Problem button in the Glencoe Smart
Audit Test.
Guide window.
Step 16 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 17 Click the Close Problem button. In the Close Options window,
select a save option as directed by your teacher. Click OK.
Continue from a Previous Session
If you want to continue from a previous session, follow steps 14 on the previous
page. If you saved your work to the network, the management system will retrieve
your les. If you saved your work to a oppy disk, insert the disk. The system will
then retrieve your les from the oppy disk.

Print a Summary General Journal Report.

Copyright by The McGraw-Hill Companies. All rights reserved.


FAQs
Does Peachtree produce an audit trail if you edit a general journal entry?
Yes. Peachtree can create an audit trail when you edit a general journal entry.
Select Company Information from the Maintain menu, select the Use
Audit Trail check box and click OK.

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.

142 Mini Practice Set 1


Name Date Class

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.

Prepare a Report and Proof Your Work


Step 4 Print a Journal report.
Step 5 Proof your work. Make corrections as needed and print a revised
report, if necessary.

4)0 While viewing a Journal report, you can double-click on an entry


to display an account register. Then double-click the entry to
open up the Make General Journal Entries window. You can edit
the transaction and then close the window. When prompted,
click Refresh to update the report.

Mini Practice Set 1 143


Name Date Class

Step 6 Print a General Ledger report.


Step 7 Print a Trial Balance report.
Analyze Your Work
Step 8 Complete the Analyze activity.
Step 9 Complete the Audit Test.
End the Session
Step 10 You should back up your work for this session.

Modify the Journal report to not show


Trans # and Name. Reprint the Journal report.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

144 Mini Practice Set 1


Name Date Class

MINI PRACTICE SET


Canyon.com Web Sites
1
Audit Test
Directions: Use your completed solutions to answer the following questions.
Write the answer in the space to the left of each question.
1. In the entry to record the May 1
transaction, which account was
debited?
2. Were assets increased, decreased, or
unaffected by the May 3 transaction?
3. What type of account is Web Server?
4. Which account was credited in the
May 9, 17, and 26 transactions?
5. What account was credited for the
purchase of the Web server on
May 7?
6. What was the source document for
the May 17 transaction?
7. How does the May 20 transaction
affect the owners capital account?
8. Was Accounts Receivable
Sunshine Products increased or
decreased by the transaction on
May 21?
Copyright by The McGraw-Hill Companies. All rights reserved.

9. What was the balance of Cash in


Bank on May 27?
10. What were the account numbers
entered in the posting Reference
column of the general journal for
the May 25 transaction?
11. Which account was debited to
record the issue of Check 110?
12. What is the ending balance of the
Utilities Expense account?
13. Has the amount owed to Ofce
Systems been paid off?
14. How many transactions recorded
during May affected the Cash in
Bank account?

Mini Practice Set 1 145


Name Date Class

15. What was the total cost of the


ofce equipment purchased during
the month?
16. How many checks were written by
the business during May?
17. What was the total amount credited
to Web Services Fees during May?
18. What was the total amount debited
to Cash in Bank for May?
19. At the end of the month, did the
Jack Hines, Withdrawals account
have a debit or credit balance?
20. On May 30, what was the total
amount owed to Canyon.com Web
Sites for services performed for
clients?
21. What was the date of the trial
balance?
22. What was the amount of the
debit and credit totals on the
trial balance?
23. How many accounts are listed in
the trial balance for Canyon.com
Web Sites?
24. How many accounts on the trial
balance have debit balances?
25. Which account on the trial balance

Copyright by The McGraw-Hill Companies. All rights reserved.


has the largest balance?

146 Mini Practice Set 1


Name Date Class

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.

Winning Complete the exercises on page 215 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 216217 in your textbook.
Applications and  Critical Thinking  Skills Beyond Numbers
Connections  Case Study  International Accounting
 A Matter of Ethics  Making It Personal
 Communicating Accounting

Chapter 8 147
Name Date Class

Working Papers for Section Problems


Problem 8-1 Entering Account Balances
on the Work Sheet (textbook p. 200)

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

Problem 8-2 Analyzing a Source Document (textbook p. 200)

1. Which company shipped the supplies?


2. Which company ordered the supplies?
3. On what date were the supplies received?
4. What does one box of le folders cost?
5. How many ring binders were ordered?
6. What is the invoice number?

Copyright by The McGraw-Hill Companies. All rights reserved.


Problem 8-3 Extending Amounts Across the Work Sheet (textbook p. 207)

Income Statement Balance Sheet


Account Name Debit Credit Debit Credit
Store Equipment 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

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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:

Copyright by The McGraw-Hill Companies. All rights reserved.


Copyright by The McGraw-Hill Companies. All rights reserved.
Name

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
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

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

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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)

Copyright by The McGraw-Hill Companies. All rights reserved.


Copyright by The McGraw-Hill Companies. All rights reserved.

Job Connect
Work Sheet
Name

For the Month Ended May 31, 20

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
1 101 Cash in Bank 1 8 9 7 2 00 1 8 9 7 2 00 1

2 105 Accts. Rec.CompuRite Systems 7 6 5 00 7 6 5 00 2

3 110 Accts. Rec.Marquez Manuf. 9 0 8 00 9 0 8 00 3

4 113 Accts. Rec.Roaring Rivers 1 2 6 8 00 4

5 115 Accts. Rec.Melanie Spencer 8 6 00 8 6 00 5

6 120 Training Class Supplies 4 1 3 00 4 1 3 00 6

7 125 Ofce Supplies 3 0 6 1 00 7

8 130 Ofce Equipment 4 7 1 9 00 8

9 135 Ofce Furniture 1 9 9 6 0 00 9

10 140 Computer Equipment 9 3 8 2 00 10

11 201 Accts. Pay.Micro Solutions Inc. 3 0 1 9 00 3 0 1 9 00 11

12 205 Accts. Pay.Vega Internet Svcs. 8 3 9 7 00 12

13 207 Accts. Pay.Wildwood Furniture 5 2 8 4 00 5 2 8 4 00 13


Date

14 301 Richard Tang, Capital 4 1 5 0 0 00 4 1 5 0 0 00 14

15 302 Richard Tang, Withdrawals 1 5 0 0 00 15


Problem 8-8 Completing the Work Sheet

16 303 Income Summary 16

17 401 Placement Fees Revenue 3 3 8 5 00 17

18 405 Technology Classes Revenue 7 6 0 0 00 18

19 501 Advertising Expense 2 1 7 4 00 2 1 7 4 00 19

20 505 Maintenance Expense 1 3 8 5 00 1 3 8 5 00 20

21 510 Miscellaneous Expense 2 0 6 00 2 0 6 00 21


Class

(textbook p. 214)

22 520 Rent Expense 4 1 0 0 00 22

23 530 Utilities Expense 2 8 6 00 2 8 6 00 23

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

Copyright by The McGraw-Hill Companies. All rights reserved.


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 General Ledger Trial Balance report.
2. Verify the information on a General Ledger Trial Balance.

Problem 8-5 Preparing a Six-Column Work Sheet


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.

Use the report design button to widen the Account


Description column on the General Ledger Trial Balance
report. Print a revised report.

Problem 8-6 Preparing a Six-Column Work Sheet


INSTRUCTIONS
Begin a Session .OTES
Step 1 Select the problem set for Kits & Pups Grooming (Prob. 8-6). Some of the longer
Step 2 Rename the company and set the system date to account names may be
May 31, 2010. shortened (or cut off) on
the General Ledger Trial
Prepare a Report and Proof Your Work Balance to t in the space
Step 3 Print a General Ledger Trial Balance report. available.

Chapter 8 155
Name Date Class
Peachtree Guide

4)0 Choose General Ledger from the Reports menu to print


a General Ledger Trial Balance.

Analyze Your Work


Step 4 Complete the Analyze activity.
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.
Click OK.

Problem 8-7 Preparing a Six-Column Work Sheet


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Outback Guide Service (Prob. 8-7).
Step 2 Rename the company and set the system date to May 31, 2010.
Prepare a Report and Proof Your Work
Step 3 Print a General Ledger Trial Balance report.
Analyze Your Work
Step 4 Complete the Analyze activity.
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.
Click OK.

Copyright by The McGraw-Hill Companies. All rights reserved.


FAQs
Does Peachtree include an option to print a six-column work sheet?
No, Peachtree does not provide an option to print a work sheet. The program
allows you to print an Income Statement and a Balance Sheet. To print an Income
Statement, a Statement of Changes in Owners Equity, or a Balance Sheet, choose
the Financial Statements option from the Reports menu.

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.

Problem 8-5 Preparing a Six-Column Work Sheet


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.

Display a Trial Balance report. Use the diamond markers


on the Debit and Credit columns to increase their width
by approximately one inch. Print a revised report.

Chapter 8 157
Name Date Class

Problem 8-6 Preparing a Six-Column Work Sheet


INSTRUCTIONS
Begin a Session .OTES
Step 1 Launch the QuickBooks Pro 2005 software. Some of the longer
Step 2 Restore Problem 8-6.QBB le. account names may be
shortened (or cut off) on
Prepare a Report and Proof Your Work the Trial Balance to t in
Step 3 Print a Trial Balance report as of May 31, 2010. the space available.

4)0 Choose Accountant & Taxes from the Reports menu.


Then select Trial Balance.

Analyze Your Work


QuickBooks Guide

Step 4 Complete the Analyze activity.


End the Session
Step 5 It is recommended that you back up your work for this session.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

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

ACCOUNT ACCOUNT NAME TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


NUMBER DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
101 Cash in Bank 0.00
105 Accounts Receivable Helen Katz 0.00
110 Accounts Receivable Polk and Co. 0.00
115 Office Supplies 0.00
120 Office Equipment 0.00
125 Camping Equipment 0.00
201 Accounts Payable Adventure Equip. Inc. 0.00
203 Accounts Payable Digital Tech Computers 0.00
205 Accounts Payable Greg Mollaro 0.00
301 Ronald Hicks, Capital 0.00
305 Ronald Hicks, Withdrawals 0.00
Copyright by The McGraw-Hill Companies. All rights reserved.

310 Income Summary ---- ---- ---- ----


401 Equipment Rental Revenue 0.00
501 Advertising Expense 0.00
505 Maintenance Expense 0.00
515 Rent Expense 0.00
525 Utilities Expense 0.00
0.00 0.00 0.00 0.00 0.00 0.00
Net Income 0.00 0.00
0.00 0.00 0.00 0.00
Spreadsheet Guide

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

4)0 It is not necessary to include a comma or the decimal point


and two zeroes as part of the amount. The spreadsheet will
automatically format the data as you type.

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.

4)0 If your spreadsheet is too wide to t on an 8-inch wide piece


of paper, you can change your print settings to print the work-
sheet landscape. Some spreadsheet applications 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.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


What-If Analysis

4)0 Always save your work before performing What-If Analysis. It is


not necessary to save your work after performing What-If Analysis
unless your teacher instructs you to do so. If you are required
to save your work after performing What-If Analysis, be sure to
Spreadsheet Guide

rename the spreadsheet to avoid saving over your original work.

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

Problem 8-8 Completing the Work Sheet


Complete the Spreadsheet
Step 1 Read the instructions for Problem 8-8 in your textbook. This problem
involves completing a six-column work sheet 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 8-8 from the
Chapter 8 drop-down list. The template should look like the one
shown below.
PROBLEM 8-8
COMPLETING THE WORK SHEET

(name)
(date)

JOB CONNECT
WORK SHEET
FOR THE MONTH ENDED MAY 31, 20

ACCOUNT ACCOUNT NAME TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


NUMBER DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
101 Cash in Bank 18,972.00 18,972.00
105 Accounts Receivable CompuRite Systems 765.00 765.00
110 Accounts Receivable Marquez Manufacturing AMOUNT 908.00
113 Accounts Receivable Roaring Rivers Water Park 1,268.00 AMOUNT
115 Accounts Receivable Melanie Spencer AMOUNT 86.00
120 Training Class Supplies AMOUNT 413.00
125 Office Supplies 3,061.00 AMOUNT
130 Office Equipment 4,719.00 AMOUNT
135 Office Furniture AMOUNT 19,960.00
140 Computer Equipment 9,382.00 AMOUNT
201 Accounts Payable Micro Solutions, Inc. AMOUNT 3,019.00
205 Accounts Payable Vega Internet Services AMOUNT 8,397.00
207 Accounts Payable Wildwood Furniture AMOUNT 5,284.00
301 Richard Tang, Capital AMOUNT 41,500.00
302 Richard Tang, Withdrawals 1,500.00 AMOUNT
303 Income Summary ---- ---- ---- ----
401 Placement Fees Revenue 3,385.00 AMOUNT
405 Technology Classes Revenue 7,600.00 7,600.00
501 Advertising Expense 2,174.00 2,174.00
Copyright by The McGraw-Hill Companies. All rights reserved.

505 Maintenance Expense AMOUNT 1,385.00


510 Miscellaneous Expense AMOUNT 206.00
520 Rent Expense 4,100.00 AMOUNT
530 Utilities Expense 286.00 286.00
46,227.00 10,985.00 4,051.00 7,600.00 41,104.00 58,200.00
Net Income 3,549.00 3,549.00
7,600.00 7,600.00 41,104.00 61,749.00

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Spreadsheet Guide

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.

 Problem 9-6 Preparing Financial Statements


 Problem 9-7 Preparing Financial Statements
Challenge Problem  Problem 9-8 Preparing a Statement of Changes in Owners Equity

Winning Complete the exercises on page 245 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 246247 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 9 163
Name Date Class

Working Papers for Section Problems


Problem 9-1 Analyzing a Source Document (textbook p. 224)

1.
2.
3.
4.
5.
6.
7.

Problem 9-2 Determining Ending Capital Balances (textbook p. 229)

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

Problem 9-3 Calculating Return on Sales (textbook p. 237)

Copyright by The McGraw-Hill Companies. All rights reserved.


Return on sales %

Space for calculations:

164 Chapter 9
Copyright by The McGraw-Hill Companies. All rights reserved.

Wilderness Rentals
Work Sheet
Name

For the Month Ended September 30, 20


ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

1 101 Cash in Bank 5 5 1 0 00 5 5 1 0 00 1

2 105 Accts. Rec.Helen Katz 9 2 9 00 9 2 9 00 2

3 110 Accts. Rec.Polk and Co. 4 6 7 00 4 6 7 00 3

4 115 Ofce Supplies 9 7 4 00 9 7 4 00 4

5 120 Ofce Equipment 4 5 1 9 00 4 5 1 9 00 5

6 125 Camping Equipment 6 3 0 0 00 6 3 0 0 00 6

7 201 Accts. Pay.Adventure Equip. 2 3 1 6 00 2 3 1 6 00 7

8 203 Accts. Pay.Digital Tech 1 1 0 9 00 1 1 0 9 00 8

9 205 Accts. Pay.Greg Mollaro 9 0 2 00 9 0 2 00 9

10 301 Ronald Hicks, Capital 1 3 2 6 0 00 1 3 2 6 0 00 10

11 305 Ronald Hicks, Withdrawals 7 0 0 00 7 0 0 00 11

12 310 Income Summary 12


Working Papers for End-of-Chapter Problems
Date

13 401 Equipment Rental Revenue 1 0 6 2 9 00 1 0 6 2 9 00 13

14 501 Advertising Expense 2 1 1 3 00 2 1 1 3 00 14

15 505 Maintenance Expense 1 2 0 0 00 1 2 0 0 00 15

16 515 Rent Expense 3 5 0 0 00 3 5 0 0 00 16


Problem 9-4 Preparing an Income Statement

17 525 Utilities Expense 2 0 0 4 00 2 0 0 4 00 17

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

Problem 9-4 (concluded)

Analyze:

Problem 9-5 Preparing a Statement of


Changes in Owners Equity (textbook p. 242)

Copyright by The McGraw-Hill Companies. All rights reserved.

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

For the Quarter Ended September 30, 20


ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET
ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

168 Chapter 9
1 101 Cash in Bank 8 4 5 7 00 1

2 105 Accts. Rec.Linda Brown 5 8 4 00 2

3 110 Accts. Rec.Valley Auto 6 1 9 00 3

4 115 Detailing Supplies 8 1 0 00 4

5 120 Detergent Supplies 4 6 0 00 5

6 125 Ofce Equipment 1 5 2 4 0 00 6

7 130 Ofce Furniture 2 1 6 0 00 7

8 135 Car Wash Equipment 7 5 2 2 00 8

9 201 Accts. Pay.Allen Vacuum 3 5 2 8 00 9

10 204 Accts. Pay.OBrians Ofce 1 2 1 5 00 10

11 301 Regina Delgado, Capital 2 3 8 4 5 00 11

12 305 Regina Delgado, Withdrawals 1 5 0 0 00 12


Date

13 310 Income Summary 13

14 401 Wash Revenue 9 6 2 3 00 14

15 405 Wax Revenue 8 0 1 9 00 15

16 410 Interior Detailing Revenue 2 6 2 8 00 16


Problem 9-6 Preparing Financial Statements

17 501 Advertising Expense 1 9 6 3 00 17

18 505 Equipment Rental Expense 4 1 3 7 00 18

19 510 Maintenance Expense 1 1 8 6 00 19


Class

20 520 Rent Expense 3 5 0 0 00 20

21 530 Utilities Expense 7 2 0 00 21


(textbook p. 242)

22 4 8 8 5 8 00 4 8 8 5 8 00 22

23 23

24 24

25 25

Copyright by The McGraw-Hill Companies. All rights reserved.


Copyright by The McGraw-Hill Companies. All rights reserved.

(3)
(2)
Name

Problem 9-6 (continued)


Date
Class

Chapter 9 169
Name Date Class

Problem 9-6 (concluded)


(4)

Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

170 Chapter 9
Copyright by The McGraw-Hill Companies. All rights reserved.

(1)
Name

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Name Date Class

Problem 9-7 (concluded)


(4)
Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

Chapter 9 173
Name Date Class

Problem 9-8 Preparing a Statement


of Changes in Owners Equity (textbook p. 243)

Analyze:

Copyright by The McGraw-Hill Companies. All rights reserved.

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.

Problem 9-4 Preparing an Income Statement


Problem 9-5 Preparing 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.

Click to print the report. Report List with a special


icon. (See Figure 9-5A.)

Custom report
icon and
report title

Financial
Statement
Report List

Figure 9-5A Select a Report Window (Financial Statements)

Chapter 9 175
Name Date Class
Peachtree Guide

Step 5 Print a Statement of Changes in Owners Equity. Select the custom


report from the Financial Statements option of the Reports
menu.
You can use the <Standard> Retained Earnings report and change
(customize) the report title to Statement of Changes in Owners
Equity for all sole proprietorships and partnerships.
How to change a nancial statement report title:
Choose Financial Statements from the Reports Menu.
Select <Standard> Retained Earnings from the report list.
Click the Design button.
Double-click on Text-Header (for Report Title eld).

Report
Text-Header

Copyright by The McGraw-Hill Companies. All rights reserved.


Figure 9-5B <Standard> Retained Earnings

In the Text to Print eld, change the report title to Statement of


Changes in Owners Equity. Click OK.

Type in report
name

Figure 9-5C Enter text for report title

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.

4)0 Use the calculator accessory available on your computer to


calculate the return on sales and the current ratio.

End the Session


Step 8 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
Click OK.

Customize the <Standard> Balance Sheet to summarize


the nancial information. Change the layout of the report
to combine all assets into one section. Also, combine the
liabilities into one section. Print your results.

Problem 9-6 Preparing Financial Statements


INSTRUCTIONS
Copyright by The McGraw-Hill Companies. All rights reserved.

Begin a Session $/9/5(!6%


Step 1 Select the problem set for Hot Suds Car Wash (Prob. 9-6). !15%34)/.
Step 2 Rename the company and set the system date to Q. Can you use the
September 30, 2010. <Standard> Income State-
Prepare a Report and Proof Your Work ment instead of the custom-
ized report?
Step 3 Print a General Ledger Trial Balance report.
Step 4 Print the quarterly Income Statement report, not the
A Yes, you can use the
<Standard> Income Statement.
<Standard> Report. The only difference is that the
Step 5 Print a Statement of Changes in Owners Equity. <Standard> Report includes
Step 6 Print the <Standard> Balance Sheet. year-to-date gures. For the
Analyze Your Work problems in this chapter, the
current month and year-to-
Step 7 Complete the Analyze activity shown in your textbook. date gures are the same.
End the Session
Step 8 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
Click OK.

Chapter 9 177
Name Date Class
Peachtree Guide

Prepare a Balance Sheet report and use it to calculate the


current ratio.

Problem 9-7 Preparing Financial Statements


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Kits & Pups Grooming (Prob. 9-7).
Step 2 Rename the company and set the system date to September 30, 2010.
Prepare a Report and Proof Your Work
Step 3 Print a General Ledger Trial Balance report.
Step 4 Print an Income Statement.
Step 5 Print a Statement of Changes in Owners Equity.
Step 6 Print a Balance Sheet.
Analyze Your Work
Step 7 Complete the Analyze activity shown in your textbook.
End the Session
Step 8 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
Click OK.

Display the Income Statement. Click the Excel button at


the top of the report. Accept the default option to create a
new Microsoft Excel workbook and click OK. 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.

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.

Problem 9-6 Preparing Financial Statements


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

Figure 9-6A The Company & Financial report list

Press Tab and type 07/01/2010 in the From eld.


Press Tab and type 09/30/2010 in the To eld.
Press Tab once more to display the Prot & Loss report.

Chapter 9 179
Name Date Class

Click the Modify Report button to open the .OTES


Modify Report: Prot & Loss window. QuickBooks lets you
Click the Header/Footer tab. create customized nancial
In the Report Title eld delete Prot & Loss and statement reports by using
type Income Statement. (See Figure 9-6B.) the Modify Report option.

Report
title
QuickBooks Guide

Figure 9-6B The Modify Report: Prot & Loss window

Click OK.
Click to print the report.
Click the , then click No when prompted to memorize
the report.
Step 5 Print a Balance Sheet.

Copyright by The McGraw-Hill Companies. All rights reserved.


To print a Balance Sheet
Choose Company & Financial from the Reports menu.
Select Balance Sheet Standard.
Press Tab and type 09/30/2010 in the As of eld.
Press Tab once more to display the Balance Sheet.
Click to print the report.
Analyze Your Work
Step 6 Complete the Analyze activity.
End the Session
Step 7 It is recommended that you back up your work for this session.

Print a Balance Sheet Summary report from the Reports


menu and use the report to calculate the current ratio.

180 Chapter 9
Name Date Class

Problem 9-7 Preparing Financial Statements


INSTRUCTIONS
Begin a Session
Step 1 Launch the QuickBooks Pro 2005 software.
Step 2 Restore Problem 9-7.QBB le.
Prepare a Report and Proof Your Work
Step 3 Print a Trial Balance report.
Step 4 Print a Prot & Loss report.
Step 5 Print a Balance Sheet.
Analyze Your Work
Step 6 Complete the Analyze activity.
End the Session
Step 7 It is recommended that you back up your work for this session.

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)

OUTBACK GUIDE SERVICE


STATEMENT OF CHANGES IN OWNERS EQUITY
FOR THE MONTH ENDED SEPTEMBER 30, 20
Beginning Capital, September 1, 20 0.00
Add: Investments by owner AMOUNT
Net Income AMOUNT
Total Increase in Capital 0.00
Subtotal 0.00
Less: Withdrawals by owner AMOUNT
Ending Capital, September 30, 20 AMOUNT

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 6 Type your name and todays date in the cells containing the (name)
and (date) placeholders.
Step 7 Type the investments by owner, net income, withdrawals
by owner, and ending capital in the cells containing the
AMOUNT placeholders. Remember, it is not necessary to
add the decimal point and ending zeroes. The beginning
capital and the total increase in capital will be automatically
.OTES
Spreadsheet Guide

computed. Remember, always


Step 8 Save the spreadsheet using the Save option from the File save your work before per-
forming What-If Analysis.
menu. You should accept the default location of the save, as
Be sure to rename the
this is handled by the management system. spreadsheet if you save
Step 9 Print the completed spreadsheet. your work after performing
Step 10 Exit the spreadsheet program. What-If Analysis.
Step 11 In the Close Options window, select the location where you
would like to save your work.
Step 12 Complete the Analyze activity from your textbook for this problem.
What-If Analysis
If the owner withdrew $3,200 during the period, what would beginning capital be?

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

Working Papers for Section Problems


Problem 10-1 Preparing Closing Entries (textbook p. 259)
GENERAL JOURNAL PAGE 22
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 1

2 2

3 3

4 4

5 5

6 6

7 7

8 8

9 9

Copyright by The McGraw-Hill Companies. All rights reserved.

184 Chapter 10
Name Date Class

Problem 10-2 Analyzing a Source Document (textbook p. 259)


(1), (3)
GENERAL JOURNAL PAGE 18
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

1 1

2 2

3 3

4 4

5 5

6 6

7 7

8 8

9 9

(2), (4)

Cash in Bank Income Summary Utilities Expense


Copyright by The McGraw-Hill Companies. All rights reserved.

Chapter 10 185
Name Date Class

Problem 10-3 Determining Accounts


Affected by Closing Entries (textbook p. 263)

Is the account Does the account


affected by a appear on the post-
Account Name Financial Statement closing entry? closing trial balance?
Accounts PayableThe Fitness Shop Balance Sheet No Yes
Accounts ReceivableLinda Brown
Advertising Expense
Cash in Bank
Exercise Class Revenue
Exercise Equipment
Income Summary
Laundry Equipment
Maintenance Expense
Membership Fees
Miscellaneous Expense
Ofce Furniture
Rent Expense
Repair Tools
Ted Chapman, Capital
Ted Chapman, Withdrawals
Utilities Expense

Copyright by The McGraw-Hill Companies. All rights reserved.

186 Chapter 10
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 10-4 Preparing Closing Entries (textbook p. 268)
(1), (2), (3), (4)
GENERAL JOURNAL PAGE 39
.
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

12 12

13 13

Analyze:

Problem 10-5 Preparing a Post-Closing Trial Balance (textbook p. 269)


Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

Chapter 10 187
Name Date Class

Problem 10-6 Journalizing Closing Entries (textbook p. 270)


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

12 12

13 13

14 14

15 15

16 16

Analyze:

Copyright by The McGraw-Hill Companies. All rights reserved.

188 Chapter 10
Name Date Class

Problem 10-7 Posting Closing Entries and


Preparing a Post-Closing Trial Balance (textbook p. 271)
(1)
GENERAL LEDGER
ACCOUNT Cash in Bank ACCOUNT NO. 101
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 2 0 0 0 00

ACCOUNT Accounts ReceivableMary Johnson ACCOUNT NO. 105


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 6 0 0 00

ACCOUNT Accounts ReceivableFeldman, Jones & Ritter ACCOUNT NO. 110


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 0 0 0 00

ACCOUNT Accounts ReceivablePodaski Systems Inc. ACCOUNT NO. 115


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20

Copyright by The McGraw-Hill Companies. All rights reserved.

Dec. 31 Balance 9 0 0 00

ACCOUNT Ofce Equipment ACCOUNT NO. 130


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 5 5 0 0 00

ACCOUNT Ofce Furniture ACCOUNT NO. 135


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 7 4 0 0 00

Chapter 10 189
Name Date Class

Problem 10-7 (continued)


ACCOUNT Computer Equipment ACCOUNT NO. 140
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 7 1 0 0 00

ACCOUNT Hiking Equipment ACCOUNT NO. 145


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 5 0 0 0 00

ACCOUNT Rafting Equipment ACCOUNT NO. 150


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 3 0 0 0 0 00

ACCOUNT Accounts PayableA-1 Adventure Warehouse ACCOUNT NO. 201


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 2 0 0 0 00

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT Accounts PayablePeak Equipment Inc. ACCOUNT NO. 205
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 9 0 0 0 00

ACCOUNT Accounts PayablePremier Processors ACCOUNT NO. 207


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 6 0 0 0 00

190 Chapter 10
Name Date Class

Problem 10-7 (continued)


ACCOUNT Juanita Ortega, Capital ACCOUNT NO. 301
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 5 0 2 0 0 00

ACCOUNT Juanita Ortega, Withdrawals ACCOUNT NO. 302


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 4 0 0 0 00

ACCOUNT Income Summary ACCOUNT NO. 310


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT Guide Service Revenue ACCOUNT NO. 401


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 6 3 0 0 00
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT Advertising Expense ACCOUNT NO. 501


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 3 0 0 0 00

ACCOUNT Maintenance Expense ACCOUNT NO. 505


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Dec. 31 Balance 1 1 0 0 00

Chapter 10 191
Name Date Class

Problem 10-7 (concluded)


ACCOUNT Rent Expense ACCOUNT NO. 515
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 4 0 0 0 00

ACCOUNT Utilities Expense ACCOUNT NO. 525


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 9 0 0 00

(2)

Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

192 Chapter 10
Copyright by The McGraw-Hill Companies. All rights reserved.

(1)
Name

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Name Date Class

Problem 10-8 (continued)


Copyright by The McGraw-Hill Companies. All rights reserved.

(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

Problem 10-8 (continued)


GENERAL JOURNAL PAGE
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

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

ACCOUNT Greg Failla, Withdrawals ACCOUNT NO. 305


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Dec. 31 Balance 4 0 0 0 00

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT Income Summary ACCOUNT NO. 310
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20

ACCOUNT Video Rental Revenue ACCOUNT NO. 401


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 9 6 0 0 00

196 Chapter 10
Name Date Class

Problem 10-8 (continued)

ACCOUNT VCR Rental Revenue ACCOUNT NO. 405


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 3 5 0 0 00

ACCOUNT Advertising Expense ACCOUNT NO. 501


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 6 0 0 00

ACCOUNT Equipment Repair Expense ACCOUNT NO. 505


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 2 0 0 00

ACCOUNT Maintenance Expense ACCOUNT NO. 510


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20

Copyright by The McGraw-Hill Companies. All rights reserved.

Dec. 31 Balance 4 0 0 00

ACCOUNT Rent Expense ACCOUNT NO. 520


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 1 0 0 0 00

ACCOUNT Utilities Expense ACCOUNT NO. 530


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Dec. 31 Balance 3 7 5 00

Chapter 10 197
Name Date Class

Problem 10-8 (concluded)


(5)

Copyright by The McGraw-Hill Companies. All rights reserved.


Analyze:

198 Chapter 10
Copyright by The McGraw-Hill Companies. All rights reserved.

(1)
Name

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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

Copyright by The McGraw-Hill Companies. All rights reserved.


Name Date Class

Problem 10-9 (continued)


(3)

GENERAL JOURNAL PAGE


.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.
Copyright by The McGraw-Hill Companies. All rights reserved.

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

Problem 10-9 (continued)


(4)
GENERAL LEDGER (PARTIAL)
ACCOUNT Richard Tang, Capital ACCOUNT NO. 301
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 2 3 6 0 0 00

ACCOUNT Richard Tang, Withdrawals ACCOUNT NO. 302


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 3 0 0 0 00

ACCOUNT Income Summary ACCOUNT NO. 303


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20

Copyright by The McGraw-Hill Companies. All rights reserved.


ACCOUNT Placement Fees Revenue ACCOUNT NO. 401
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 6 9 0 0 00

ACCOUNT Technology Classes Revenue ACCOUNT NO. 405


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 2 4 0 0 00

202 Chapter 10
Name Date Class

Problem 10-9 (continued)


ACCOUNT Advertising Expense ACCOUNT NO. 501
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 3 0 0 0 00

ACCOUNT Maintenance Expense ACCOUNT NO. 505


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 8 0 0 00

ACCOUNT Miscellaneous Expense ACCOUNT NO. 510


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Dec. 31 Balance 8 0 0 00

ACCOUNT Rent Expense ACCOUNT NO. 520


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

20
Dec. 31 Balance 2 0 0 0 00

ACCOUNT Utilities Expense ACCOUNT NO. 530


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Dec. 31 Balance 9 0 0 00

Chapter 10 203
Name Date Class

Problem 10-9 (concluded)


(5)

Analyze:

Copyright by The McGraw-Hill Companies. All rights reserved.

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.

Problem 10-4 Preparing Closing Entries


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.

check mark from Print box. Click Next to continue.


6. Year-End Wizard Back Up is required in Peachtree. Click
Back Up to continue. .OTES
7. Back Up Company will back up your company data and You do not have to
customized forms. Click Back Up to continue. manually enter the closing
8. Save Backup for Wilderness (Prob. 10-4:XXX) as: displays entries, since the Peachtree
the le name for backup and places it in the Wilderness software automatically per-
(Prob. 10-4:XXX) folder as a backup (.ptb) le. Click Save. forms the closing process.
9. Peachtree Accounting alerts you to space requirements
for the backup le. Click OK to continue.
10. Click Next on the Year-End WizardBack Up window to continue.
11. Year-End Wizard New Open Fiscal Years displays the twelve peri-
ods in the new Current Fiscal Year (Jan. 1, 2011 to Dec. 31, 2011)
and the twelve periods in the new Next Fiscal Year. Click Next to
continue.
12. Year-End Wizard Conrm Close displays the years that will
close and the new open years. Click Next to continue.
13. Year-End Wizard Begin Close allows you to close the years you
have selected. Important! You cannot cancel Year-End
Wizard after this point! Click Begin Close to continue.

Chapter 10 205
Name Date Class
Peachtree Guide

Peachtree creates the closing entries and automatically switches


to the next scal year (Jan. 1, 2011 to Dec. 31, 2011).
14. Year-End Wizard Congratulations! displays successfully closed
years and new opened years. Click Finish to exit the Year-End
Wizard. (See Figure 10-4A.)

$/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!

Step 4 Change the system date to January 1, 2011.


Analyze Your Work
Step 5 Complete the Analyze activity. Print a General Ledger Trial Balance
to help you with your work.
End the Session
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

Copyright by The McGraw-Hill Companies. All rights reserved.


Review the online help information to learn how to restore
backup les for the company.

Problem 10-5 Preparing a Post-Closing Trial Balance


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Hot Suds Car Wash (Prob. 10-5).
Step 2 Rename the company and set the system date to
January 1, 2009.
Prepare a Report and Proof Your Work
Step 3 Print a Post-Closing Trial Balance.
Analyze Your Work
Step 4 Complete the Analyze activity.

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.

Display a General Ledger Trial Balance.


Change the report title to Post-Closing Trial
Balance and print the report.

Problem 10-6 Journalizing Closing Entries


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.

Problem 10-7 Posting Closing Entries and Preparing


a Post-Closing Trial Balance
INSTRUCTIONS
Copyright by The McGraw-Hill Companies. All rights reserved.

Begin a Session .OTES


Step 1 Select the problem set for Outback Guide Service (Prob. 10-7).
Choose to print the
Step 2 Rename the company and set the system date to
General Ledger Trial Balance
December 31, 2010. whenever you need a
Work the Accounting Problem Post-Closing Trial Balance.
Step 3 Perform the closing process.
Step 4 Change the system date to January 1, 2011.
Step 5 Print a Post-Closing Trial Balance.
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.

Chapter 10 207
Name Date Class
Peachtree Guide

Problem 10-8 Completing End-of-Period Activities


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Showbiz Video (Prob. 10-8).
Step 2 Rename the company and set the system date to December 31, 2010.
Work the Accounting Problem
Step 3 Print a General Ledger Trial Balance.
Step 4 Print the nancial statements.
Step 5 Perform the closing process.
Step 6 Change the system date to January 1, 2011.
Step 7 Print a Post-Closing Trial Balance.
Analyze Your Work
Step 8 Complete the Analyze activity.
End the Session
Step 9 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

How do you export a Post-Closing Trial Balance report


from Peachtree to a Microsoft Excel worksheet? On a
separate sheet of paper, explain your answer.

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

Copyright by The McGraw-Hill Companies. All rights reserved.


error, and then close the scal year again. If you do not have the backup or you
do not want to restore the company data, make a correcting journal entry in the
new period.

Can you undo the closing process?


No. Once you close a scal year, you cannot undo the process and reset the com-
pany data les. For this reason, 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.

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.

Problem 10-5 Preparing 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.

Problem 10-8 Completing End-of-Period Activities


Copyright by The McGraw-Hill Companies. All rights reserved.

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

Press Tab twice and type Close Withdrawals in the Memo


column as the description of the transaction.
Tab to the next line and enter the withdrawals account.
Press Tab twice and type 4,000 in the Credit column.
Press Tab and type Close Withdrawals in the Memo column
as the description of the transaction.
Save the transaction.
To set a closing date:
Choose Preferences from the Edit menu.
Select the Accounting preference option and choose the
Company Preferences tab. (See Figure 10-8A.)
QuickBooks Guide

Copyright by The McGraw-Hill Companies. All rights reserved.


Figure 10-8A The Preferences Window

In the Closing Date section of the Preferences window, type


12/31/2010 in the Date through which books are closed eld.

$/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

Click the button.


Type 2010 in the Password eld and press Tab.
Type 2010 in the Conrm Password eld. (See Figure 10-8B.)

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.

How do you export a Post-Closing Trial


Copyright by The McGraw-Hill Companies. All rights reserved.

Balance report from QuickBooks to a


Microsoft Excel worksheet? On a separate
sheet of paper, explain your answer.

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.

Can you undo the closing process?


Yes. Display the Preferences option from the Edit menu. Select the Accounting
preference option. Display the Password window and delete both the password
and the conrm password entries. Click OK. Next, delete the closing date and
click OK. If you manually closed the withdrawals account you will need to delete
or void the entry. This will undo the closing process.
QuickBooks Guide

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

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

ACCOUNT ACCOUNT NAME TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


NUMBER DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT
101 Cash in Bank 0.00
105 Accounts Receivable CompuRite Systems 0.00
110 Accounts Receivable Marquez Manufacturing 0.00
113 Accounts Receivable Roaring Rivers Water Park 0.00
115 Accounts Receivable M. Spencer 0.00
130 Office Equipment 0.00
135 Office Furniture 0.00
140 Computer Equipment 0.00
Copyright by The McGraw-Hill Companies. All rights reserved.

201 Accounts Payable Micro Solutions Inc. 0.00


205 Accounts Payable Vega Internet Services 0.00
207 Accounts Payable Wildwood Furniture Sales 0.00
301 Richard Tang, Capital 0.00
302 Richard Tang, Withdrawals 0.00
303 Income Summary ---- ---- ---- ----
401 Placement Fees Revenue 0.00
405 Technology Classes Revenue 0.00
501 Advertising Expense 0.00
Spreadsheet Guide
505 Maintenance Expense 0.00
510 Miscellaneous Expense 0.00
520 Rent Expense 0.00
530 Utilities Expense 0.00
0.00 0.00 0.00 0.00 0.00 0.00
Net Income 0.00 0.00
0.00 0.00 0.00 0.00

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 14 Exit the spreadsheet program.
Step 15 In the Close Options window, select the location where you would
like to save your work.
Step 16 Complete the Analyze activity from your textbook for this problem.
What-If Analysis
Spreadsheet Guide

4)0 Remember, always save your work before performing What-If


Analysis. Be sure to rename the spreadsheet if you save your
work after performing What-If Analysis.

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.

Winning Complete the exercises on page 301 in your textbook.


Competitive Events
Real-World Complete the following applications on pages 302-303 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 11 215
Name Date Class

Working Papers for Section Problems


Problem 11-1 Preparing a Deposit Slip
and Writing Checks (textbook p. 283)

First Bank of the Cape DOLLARS CENTS

BE SURE EACH ITEM IS ENDORSED


HYANNIS, MA 02601 CASH
CHECKS (List Singly)

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

0111 01602 749 2454 TOTAL

$ 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

Less this check MEMO

Balance carried forward 0111 01602 749 2454 41

$ No. 42
42
Date 20

Copyright by The McGraw-Hill Companies. All rights reserved.


51-160
To 113 Old Cape Road
111
For
Dennis, MA 02638
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward
ORDER OF $
Add deposits
DOLLARS
First Bank of the Cape
HYANNIS, MA 02601
Total

Less this check MEMO

Balance carried forward 0111 01602 749 2454 42

Problem 11-2 Analyzing a Source Document (textbook p. 292)

1.
2.
3.

216 Chapter 11
Name Date Class

Working Papers for End-of-Chapter Problems


Problem 11-3 Handling Deposits (textbook p. 298)
(1)

(2)

First National Bank DOLLARS CENTS


BE SURE EACH ITEM IS ENDORSED

LITTLE ROCK, AR CASH


CHECKS (List Singly)

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

0631 02948 7008 497 TOTAL

(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

Less this check MEMO

Balance carried forward 0631 02948 7008 497 651

Analyze:

Chapter 11 217
Name Date Class

Problem 11-4 Maintaining the Checkbook (textbook p. 298)

$ 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

Less this check MEMO

Balance carried forward 071001116 323 0019 504

$ 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

Less this check MEMO

Balance carried forward 071001116 323 0019 505

$ 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 $

Copyright by The McGraw-Hill Companies. All rights reserved.


Add deposits
DOLLARS
American Bank
COLORADO SPRINGS, CO
Total

Less this check MEMO

Balance carried forward 071001116 323 0019 506

$ 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

Less this check MEMO

Balance carried forward 071001116 323 0019 507

218 Chapter 11
Name Date Class

Problem 11-4 (concluded)


Analyze:

Problem 11-5 Reconciling the Bank Statement (textbook p. 299)


(1)

$ No. 773
Date 20
To
For

Dollars Cents

Balance brought forward 960 00


Add deposits

Total

Less this check

Balance carried forward

(2)

BANK RECONCILIATION FORM

PLEASE EXAMINE YOUR STATEMENT AT ONCE. ANY CHECKS OUTSTANDING


DISCREPANCY SHOULD BE REPORTED TO THE BANK
Number Amount
IMMEDIATELY.

1. Record any transactions appearing on this statement but not


listed in your checkbook.
Copyright by The McGraw-Hill Companies. All rights reserved.

2. List any checks still outstanding in the space provided to the right.

3. Enter the balance shown on this


statement here.
4. Enter deposits recorded in your
checkbook but not shown on this
statement.

5. Total Lines 3 and 4 and enter here.

6. Enter total checks outstanding here.

7. Subtract Line 6 from Line 5. This


adjusted bank balance should agree TOTAL
with your checkbook balance.

Chapter 11 219
Name Date Class

Problem 11-5 (concluded)


(3)
GENERAL JOURNAL PAGE 4
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

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

ACCOUNT Miscellaneous Expense ACCOUNT NO. 512

Copyright by The McGraw-Hill Companies. All rights reserved.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Oct. 1 Balance 4 9 5 00

17 G2 1 0 00 6 0 5 00

Analyze:

220 Chapter 11
Name Date Class

Problem 11-6 Reconciling the Bank Statement (textbook p. 299)


(1)

$ No. 888
Date 20
To
For

Dollars Cents

Balance brought forward 2,551 34


Add deposits

Total

Less this check

Balance carried forward

(2)

BANK RECONCILIATION FORM

PLEASE EXAMINE YOUR STATEMENT AT ONCE. ANY CHECKS OUTSTANDING


DISCREPANCY SHOULD BE REPORTED TO THE BANK
Number Amount
IMMEDIATELY.

1. Record any transactions appearing on this statement but not


listed in your checkbook.

2. List any checks still outstanding in the space provided to the right.

3. Enter the balance shown on this


Copyright by The McGraw-Hill Companies. All rights reserved.

statement here.
4. Enter deposits recorded in your
checkbook but not shown on this
statement.

5. Total Lines 3 and 4 and enter here.

6. Enter total checks outstanding here.

7. Subtract Line 6 from Line 5. This


adjusted bank balance should agree TOTAL
with your checkbook balance.

Chapter 11 221
Name Date Class

Problem 11-6 (continued)


(3)
GENERAL JOURNAL PAGE
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

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

ACCOUNT Accounts ReceivablePodaski Systems Inc. ACCOUNT NO. 115


POST. BALANCE

Copyright by The McGraw-Hill Companies. All rights reserved.


DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

20
Oct. 1 Balance 1 9 50

10 G4 1 8 00 6 2 44
18 G5 6 2 44

ACCOUNT Miscellaneous Expense ACCOUNT NO. 507


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
20
Oct. 10 G4 2 0 00 2 0 00

25 G6 1 0 00 5 0 00

222 Chapter 11
Name Date Class

Problem 11-6 (concluded)


Analyze:

Problem 11-7 Reconciling the Bank Statement (textbook p. 300)


(1)

$ No. 1772
Date October 31 20
To
For

Dollars Cents

Balance brought forward 13,462 96


Add deposits

Total

Less this check

Balance carried forward

(2)

BANK RECONCILIATION FORM

PLEASE EXAMINE YOUR STATEMENT AT ONCE. ANY CHECKS OUTSTANDING


DISCREPANCY SHOULD BE REPORTED TO THE BANK
Number Amount
IMMEDIATELY.

1. Record any transactions appearing on this statement but not


listed in your checkbook.
Copyright by The McGraw-Hill Companies. All rights reserved.

2. List any checks still outstanding in the space provided to the right.

3. Enter the balance shown on this


statement here.
4. Enter deposits recorded in your
checkbook but not shown on this
statement.

5. Total Lines 3 and 4 and enter here.

6. Enter total checks outstanding here.

7. Subtract Line 6 from Line 5. This


adjusted bank balance should agree TOTAL
with your checkbook balance.

Chapter 11 223
Name Date Class

Problem 11-7 (concluded)


(3)
GENERAL JOURNAL PAGE
.
DATE DESCRIPTION POST. DEBIT CREDIT
REF.

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

Copyright by The McGraw-Hill Companies. All rights reserved.


REF. DEBIT CREDIT

20
Oct. 30 Balance 6 1 0 47

Analyze:

224 Chapter 11
Name Date Class

Problem 11-8 Reconciling the Bank Statement


Using the Account Form (textbook p. 300)

Security National Bank


3001 Porterfield Street, Durham, NC 27704

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

452.46 1 288.66 4 396.54 344.58


Checks & Deposits &
Description Other Debits Other Credits Date Balance

Balance Forward 09/15 452.46


Check 105.00 09/18 347.46
Check 59.71 09/22 287.75
Check 87.00 09/29 200.75
Check 45.41 09/29 155.34
Deposit 288.66 10/06 444.00
Returned Check 68.42 10/13 375.58
Service Charge 7.00 10/13 368.58
Service Charge 10.00 10/15 358.58
Service Charge 14.00 10/18 344.58
Copyright by The McGraw-Hill Companies. All rights reserved.

PLEASE EXAMINE YOUR STATEMENT CAREFULLY. DIRECT ALL INQUIRIES IMMEDIATELY.

Chapter 11 225
Name

Analyze:

226 Chapter 11
Problem 11-8 (concluded)
Date
Class

Copyright by The McGraw-Hill Companies. All rights reserved.


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. Record a payment.
2. Use the Account Reconciliation feature to reconcile a bank statement.
3. Adjust an account.
4. Print the Account Reconciliation reports.

Problem 11-4 Maintaining the Checkbook


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.

Lookup elds, such


shows 2010 for the year. If not, change the system date. as the Vendor ID eld, are
case-sensitive.

4)0 As a shortcut, you can just type the day of the month in most
date elds. Peachtree will automatically format the date.

Type Construction Supplies in the Memo eld.


Move to the Description eld on the Apply to Expenses tab and type
Construction Supplies.
Skip the GL Account eld, since the default account code,
Maintenance Expense, is correct.
Type 868.45 in the Amount eld to record the amount of the
check.
When you enter the amount, Peachtree automatically displays
the amount in the upper portion of the entry window.

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

Figure 11-4A Completed Payment Transaction (October 3, Check 504)

Click to display the Accounting Behind the Screens window.


Use the information in this window to check your work again. (See
Figure 11-4B.)

.OTES
Viewing the
Accounting Behind the
Screens window is not

Copyright by The McGraw-Hill Companies. All rights reserved.


required each time you
enter a transaction. This
Transaction information, however, is
detail useful to understand how
Peachtree records a trans-
action such as a payment.

Figure 11-4B Accounting Behind the Screens (Payment)

The Accounting Behind the Screens window shows you the


accounts and the debit/credit amounts that Peachtree will record
for this transaction. For the payment, the window should show
the following: Maintenance Expense ($868.45 DR) and
Cash in Bank ($868.45 CR).

228 Chapter 11
Name Date Class

Peachtree Guide
Click to close the Accounting Behind the Screens window.

Click to post the payment.

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.

select the appropriate task option (Payments or General


Journal Entry) and edit the incorrect entry. Print a revised
Account Register report.
Analyze Your Work
Step 8 Complete the Analyze activity.
End the Session
Step 9 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

On a separate sheet of paper, answer the following


questions: How would you purchase pre-printed checks
if you wanted to use Peachtree to prepare real checks?
What security features are available on Peachtree checks?
Use the online help information to learn how to order
pre-printed checks.

Chapter 11 229
Name Date Class
Peachtree Guide

Problem 11-5 Reconciling the Bank Statement


INSTRUCTIONS
Begin a Session
Step 1 Select the problem set for Kits & Pups Grooming (Prob. 11-5).
Step 2 Rename the company and set the system date to
October 31, 2010.
$/9/5(!6%
!15%34)/.
Q. When you use the
Account Reconciliation

option and record an adjust-
Work the Accounting Problem
ment, do you have to make
Step 3 Reconcile the bank statement.
a separate entry to update
The problem set includes all of the transaction data needed to the general ledger?
perform the account reconciliation. Payments and deposits made A. No. Peachtree automati-
throughout the month have already been recorded for you. Bank cally creates a general journal
service charges and other fees have not been recorded. entry behind the scenes when
you enter an adjustment (e.g.,
To reconcile the bank statement: bank service charge) using
Choose Account Reconciliation from the Tasks menu. the Account Reconciliation
option.
Type 101 (the Cash in Bank account ID) in the Account to
Reconcile eld.
You must identify the account you want to reconcile. Some com-
panies may have more than one checking account. For example, a
company may have one account for regular payments and another
account for payroll.
Change the statement date to 10/30/10.
Identify the checks that have cleared (those that would .OTES
appear on the bank statement). Click the Clear box for all
of the checks except Check 768 and Check 772, since these Peachtree displays
two are outstanding. the checks and deposits in
the Account Reconciliation
Identify which deposits have cleared. If a deposit was made,
window after you identify
but does not appear on the bank statement, do not check the account you want to
the Clear box. reconcile.
Type 1380 in the Statement Ending Balance eld.
Compare the Account Reconciliation window on your screen to

Copyright by The McGraw-Hill Companies. All rights reserved.


the one shown in Figure 11-5A. Outstanding checks should total
$835.00 and deposits in transit should be $405.00. The GL (System)
Balance is the same as the checkbook balance.
The unreconciled difference should show $10.00 because you
have yet to account for the bank service charge. When this amount
is zero ($0.00), the account will be reconciled.
Click to enter the bank service charge.

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)

Record the bank service charge as a withdrawal in the Additional


Transactions window. Enter 10.00 for the amount, type Service
Charge for the description, and record 512 (Miscellaneous
Expense) for the account. (See Figure 11-5B.) Click OK to record
the additional transaction.

Transaction
detail
.OTES
When you enter an
Copyright by The McGraw-Hill Companies. All rights reserved.

additional charge such as


the bank service charge,
you must enter a General
Ledger account number.
Peachtree automatically
Figure 11-5B Additional Transactions Window generates a general journal
entry for you behind the
Scroll the Checks and Bank Debits list to display the service scenes.
charge in the Account Reconciliation window. You should
see the bank service charge you just entered.
Click the Clear box next to the service charge to mark it as cleared.
Verify that the unreconciled difference is zero ($0.00). Also, notice
that the GL (System) Balance is $950.00. Peachtree automatically
updated the Cash in Bank GL account to reect the service
charge. If these gures do not match your screen, verify which
checks/deposits you marked as cleared. Also, verify the bank
statement amount and the bank service charge amount.
Click to complete the reconciliation process.

Chapter 11 231
Name Date Class
Peachtree Guide

Step 4 Print the following Account Reconciliation reports: Account Register,


Account Reconciliation, Deposits in Transit, and Outstanding Checks.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

Do you know how to change the layout of reports? Adjust


the Account Reconciliation report layout to widen the date
eld to show the entire date (month, day, year). Print an
updated Account Reconciliation report.

Problem 11-7 Reconciling the Bank Statement


INSTRUCTIONS
Begin a Session .OTES
Step 1 Select the problem set for Showbiz Video (Prob. 11-7).
You do not have to
Step 2 Rename the company and set the system date to make a separate general
October 31, 2010. journal entry to record
Work the Accounting Problem a bank service charge.
Peachtree automatically
Step 3 Reconcile the bank statement. creates this entry when
you make an adjustment
to reconcile an account.
4)0 Use the account reconciliation Adjust option to
record a bank service charge. Apply the charge to the
Miscellaneous Expense account.

Copyright by The McGraw-Hill Companies. All rights reserved.


Step 4 Print the following Account Reconciliation reports: Account Register,
Account Reconciliation, Deposits in Transit, and Outstanding Checks.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

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.

4)0 Use the account reconciliation Adjust option to record returned


checks, bank service fees, and stop payment charges to the
Miscellaneous Expense account.

Step 4 Print the following Account Reconciliation reports: Account Register,


Account Reconciliation, Deposits in Transit, and Outstanding Checks.
Analyze Your Work
Step 5 Complete the Analyze activity.
End the Session
Step 6 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.

How do you save your work if you are interrupted while


reconciling the bank account and you need to exit the
window? On a separate sheet of paper, explain your answer.
Copyright by The McGraw-Hill Companies. All rights reserved.

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.

Copyright by The McGraw-Hill Companies. All rights reserved.

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.

Problem 11-5 Reconciling the Bank Statement


INSTRUCTIONS
Begin a Session
Step 1 Restore Problem 11-5.QBB le. Use 2010 as the year.
Work the Accounting Problem
$/9/5(!6%
!15%34)/.
Q.

When you use the Begin

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

Press Tab and type 1380 in the Ending Balance eld.




Press Tab and type 10 in the Service Charge eld.
Press Tab and type 10/31/2010 in the Date eld.
.OTES
Press Tab and type 512 Miscellaneous Expense in When you enter a
the Account eld. This is the account that will be used bank service charge, you
must enter a General
to record the bank service charge.
Ledger account number.
Verify that you have entered the correct information QuickBooks will auto-
as shown in Figure 11-5A. matically generate the gen-
Click Continue. The ReconcileCash in Bank eral journal entry for you
window opens. behind the scenes.
Click in the column below the check mark, to
highlight the deposits that have cleared (those that
would appear on the bank statement). As you select
a deposit as having cleared, the Cleared Balance and
.OTES
Difference elds on the bottom right of the window If the account is inter-
are updated. est-bearing, you would type
Click in the column below the check mark to high- into the Interest Earned
light the checks that have cleared. As you select a eld the amount of the
check as having cleared, the Cleared Balance and interest earned shown on
QuickBooks Guide

the bank statement. You


Difference elds on the bottom right of the window
would also type the posting
are updated. date for the interest shown
When everything has been entered, or marked with a on the bank statement and
check mark as cleared, look at the Difference eld and use Interest Income as
make sure it shows a 0.00 balance. This means that the account.
your reconciliation is complete.
Verify your reconciliation with the one in
Figure 11-5B.

Click here to
mark check
as cleared

Do not mark
outstanding

Copyright by The McGraw-Hill Companies. All rights reserved.


checks

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

Click Reconcile Now to process the reconciliation and update


the Cash in Bank account with the cleared entries.
If the Information window opens, click OK.
To obtain a reconciliation report showing all the checks
and deposits in detail, select Detail in the Select Reconciliation
Report window. (See Figure 11-5C.)

Detail shows
all reconciled
and outstanding
checks and
deposits.

QuickBooks Guide
Figure 11-5C The Select Reconciliation Report Window

Click Display to generate the report on your monitor.


When the Reconciliation Report window opens, click OK.
Step 3 Print the Detail Reconciliation report for October 2010.
Step 4 Print the Cash in Bank Register for October 2010.
To print the Cash in Bank Register:
Choose Use Register from the Banking menu.
When the Use Register window opens, select 101 Cash in Bank
in the Select Account eld.
Click OK in the Use Register window.
Click Print in the 101 Cash in Bank Register window.
When the Print Register window opens, type 10/01/2010 in the
Copyright by The McGraw-Hill Companies. All rights reserved.

From eld.
Press Tab and type 10/31/2010 in the Through eld.
(See Figure 11-5D.)

Figure 11-5D The Print Register Window

Click OK, and then click Print.


Analyze Your Work
Step 5 Complete the Analyze activity. Use the Reconciliation Detail report
for help. Outstanding checks will be found in the section titled
Uncleared Transactions.
Chapter 11 237
Name Date Class

End the Session


Step 6 It is recommended that you back up your work for this session.

Adjust the Reconciliation Detail report layout to increase


the size of the columns to show the data in all of the
columns. Print an updated Reconciliation Detail report.

Problem 11-7 Reconciling the Bank Statement


INSTRUCTIONS
Begin a Session
Step 1 Restore Problem 11-7.QBB le. Use 2010 as the year.
Work the Accounting Problem
Step 2 Reconcile the bank statement.
QuickBooks Guide

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.

How do you save your work if you are interrupted


while reconciling the bank account and you need
to exit the window? On a separate sheet of paper,
explain your answer.

Copyright by The McGraw-Hill Companies. All rights reserved.


FAQs
How do you edit or delete an entry for a bank service charge entered using the
Account Reconciliation feature?
Once you enter a bank service charge while reconciling an account, QuickBooks
will not allow you to edit the transaction. You must leave the Reconcile win-
dow and then choose Reconcile from the Banking menu. Make the necessary
changes in the Begin Reconciliation window and click Continue.

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)

OUTBACK GUIDE SERVICE


BANK RECONCILIATION
OCTOBER 30, 20

Balance on bank statement AMOUNT

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.

Check #883 AMOUNT


Check #887 AMOUNT
TOTAL OUTSTANDING CHECKS 0.00
ADJUSTED BANK BALANCE 0.00

Balance in checkbook AMOUNT

Additions: Spreadsheet Guide


Interest earned AMOUNT
TOTAL ADDITIONS 0.00

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.

Copyright by The McGraw-Hill Companies. All rights reserved.


Spreadsheet Guide

240 Chapter 11
Name Date Class

MINI PRACTICE SET


Fast Track Tutoring Service
2
CHART OF ACCOUNTS

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.

Mini Practice Set 2 241


Name Date Class

Mini Practice Set 2 (textbook p. 304)


Instructions: Use the following source documents to record the transactions for
this practice set.

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

TO: Accounting Clerk December 5 20


FROM: Owner RECEIVED FROM Shirley Stevenson $ 950.00
DATE: December 1, 20
SUBJECT: Investment Nine hundred fifty and 00/100 DOLLARS

Prepare entry to record $25,000 cash investment by Jennifer Rachael. FOR Private instruction

RECEIVED BY Jennifer Rachael

E DUCATIONAL S OFTWARE INVOICE NO. 395


913 Walnut St., #2 DATE: Dec. 6, 20
Coxville, TX 78701
ORDER NO.:
Fast Track Tutoring Service SHIPPED BY:
TO 75 Knoll Ridge Drive TERMS:
Fast Track Tutoring Service 101 Austin, TX 78708
75 Knoll Ridge Drive 71-627
Austin, TX 78708 3222
QTY. ITEM UNIT PRICE TOTAL
DATE December 2 20 Software (Windows NT, MS Office, Goldmine) $8494.00
PAY TO THE
ORDER OF Office Max $ 525.00

Five hundred twenty-five and 00/100


DOLLARS $8494.00
 Citibank
MEMO cash register Jennifer Rachael
3222 71627 1123 4533 0101

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

Seventy-three and 00/100 DOLLARS QTY. ITEM UNIT PRICE TOTAL


 Citibank 2 Group Classes $18.00 $36.00

Copyright by The McGraw-Hill Companies. All rights reserved.


MEMO office supplies Jennifer Rachael
3222 71627 1123 4533 0102

Fast Track Tutoring Service 103


75 Knoll Ridge Drive 71-627
Austin, TX 78708 3222
DATE December 5 20
PAY TO THE
ORDER OF Best Buy $ 13,924.00 Fast Track Tutoring Service 104
75 Knoll Ridge Drive 71-627
Thirteen thousand nine hundred twenty-four and 00/100 DOLLARS Austin, TX 78708 3222

 Citibank DATE December 9 20


PAY TO THE
MEMO computers Jennifer Rachael ORDER OF Carlo Property Realty $ 850.00
3222 71627 1123 4533 0103 Eight hundred fifty and 00/100 DOLLARS

 Citibank
MEMO rent Jennifer Rachael
3222 71627 1123 4533 0104

242 Mini Practice Set 2


Name Date Class

Mini Practice Set 2 (continued)


Fast Track Tutoring Service INVOICE NO. 102 Fast Track Tutoring Service 105
75 Knoll Ridge Drive
DATE: Dec. 10, 20 75 Knoll Ridge Drive 71-627
Austin, TX 78708
Austin, TX 78708 3222
ORDER NO.:
George McGarty SHIPPED BY: DATE December 14 20
TO 31 Vale Street TERMS: PAY TO THE
Austin, TX 78705 ORDER OF Educational Software $ 200.00

QTY. ITEM UNIT PRICE TOTAL Two hundred and 00/100 DOLLARS

5 Special Group Classes $55.00 $275.00  Citibank


MEMO software Jennifer Rachael
3222 71627 1123 4533 0105

Fast Track Tutoring Service 106


75 Knoll Ridge Drive 71-627
Austin, TX 78708 3222
DATE December 15 20
PAY TO THE
T&N School Equipment INVOICE NO. 5495 ORDER OF Union Painting Service $ 750.00
111 Stratford Drive, #2A
DATE: Dec. 10, 20
Rollingwood, TX 77081 Seven hundred fifty and 00/100 DOLLARS
ORDER NO.:
Fast Track Tutoring Service SHIPPED BY:  Citibank
TO 75 Knoll Ridge Drive TERMS:
Austin, TX 78708 MEMO painting Jennifer Rachael
3222 71627 1123 4533 0106
QTY. ITEM UNIT PRICE TOTAL
Microcomputer System $2,375.00

Fast Track Tutoring Service 107


75 Knoll Ridge Drive 71-627
Austin, TX 78708 3222
DATE December 18 20
PAY TO THE
ORDER OF Jennifer Rachael $ 500.00

Five 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.

ORDER OF Edison Electric $ 183.00


RECEIVED BY Jennifer Rachael
One hundred eighty-three and 00/100 DOLLARS

 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

December 13 20 Fast Track Tutoring Service 109


RECEIVED FROM Carla DiSario $ 36.00 75 Knoll Ridge Drive 71-627
Austin, TX 78708 3222
Thirty-six and 00/100 DOLLARS DATE December 24 20
PAY TO THE
FOR Payment for lessons ORDER OF U.S. Postal Service $ 45.00

RECEIVED BY Jennifer Rachael Forty-five and 00/100 DOLLARS

 Citibank
MEMO stamps Jennifer Rachael
3222 71627 1123 4533 0109

Mini Practice Set 2 243


Name Date Class

Mini Practice Set 2 (continued)


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

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

244 Mini Practice Set 2


Name Date Class

Mini Practice Set 2 (continued)


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

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

Mini Practice Set 2 245


Name Date Class

Mini Practice Set 2 (continued)


GENERAL LEDGER
ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.

246 Mini Practice Set 2


Name Date Class

Mini Practice Set 2 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

Mini Practice Set 2 247


Name Date Class

Mini Practice Set 2 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION DEBIT CREDIT

Copyright by The McGraw-Hill Companies. All rights reserved.


REF. DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

248 Mini Practice Set 2


Name Date Class

Mini Practice Set 2 (continued)


ACCOUNT ACCOUNT NO.
POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION REF. DEBIT CREDIT
DEBIT CREDIT

ACCOUNT ACCOUNT NO.


POST. BALANCE
DATE DESCRIPTION DEBIT CREDIT
Copyright by The McGraw-Hill Companies. All rights reserved.

REF. DEBIT CREDIT

Mini Practice Set 2 249


Name Date Class

Mini Practice Set 2 (continued)


(5)

BANK RECONCILIATION FORM

PLEASE EXAMINE YOUR STATEMENT AT ONCE. ANY CHECKS OUTSTANDING


DISCREPANCY SHOULD BE REPORTED TO THE BANK
Number Amount
IMMEDIATELY.

1. Record any transactions appearing on this statement but not


listed in your checkbook.

2. List any checks still outstanding in the space provided to the right.

3. Enter the balance shown on this


statement here.
4. Enter deposits recorded in your
checkbook but not shown on this
statement.

5. Total Lines 3 and 4 and enter here.

6. Enter total checks outstanding here.

7. Subtract Line 6 from Line 5. This


adjusted bank balance should agree TOTAL
with your checkbook balance.

Copyright by The McGraw-Hill Companies. All rights reserved.


(7)

$ No. 114 Fast Track Tutoring Service 114


Date 20
75 Knoll Ridge Drive 71-627
To
Austin, TX 78708 3222
For
DATE 20
Dollars Cents
PAY TO THE
Balance brought forward
ORDER OF $
Add deposits
DOLLARS

 Citibank
Total

Less this check MEMO

Balance carried forward 3222 71627 1123 4533 0114

250 Mini Practice Set 2


Copyright by The McGraw-Hill Companies. All rights reserved.

(8)
Name

ACCT. TRIAL BALANCE INCOME STATEMENT BALANCE SHEET


ACCOUNT NAME
NO. DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT

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

Mini Practice Set 2 251


Name Date Class

Mini Practice Set 2 (continued)


(9)

(9)

Copyright by The McGraw-Hill Companies. All rights reserved.

252 Mini Practice Set 2


Name Date Class

Mini Practice Set 2 (concluded)


(9)

(11)
Copyright by The McGraw-Hill Companies. All rights reserved.

Analyze:

Mini Practice Set 2 253


Name

254 Mini Practice Set 2


Notes
Date
Class

Copyright by The McGraw-Hill Companies. All rights reserved.


Name Date Class

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.

Step 9 Use the Account Reconciliation option to reconcile the bank


statement.
Copyright by The McGraw-Hill Companies. All rights reserved.

4)0 If you use the account reconciliation feature, Peachtree automati-


cally inserts the general journal entry behind the screens.

Prepare a Report and Proof Your Work


Step 10 Print a General Journal report.
Step 11 Proof your work. Make any corrections as needed and print a revised
report, if necessary.

4)0 While viewing a General Journal report, you can double-click on


an entry to display it in the General Journal Entry window. You
can edit the transaction and then close the window to see an
updated report.

Step 12 Print the Account Register and Account Reconciliation reports.

Mini Practice Set 2 255


Name Date Class
Peachtree Guide

Step 13 Print a General Ledger report.


Step 14 Print a General Ledger Trial Balance. .OTES
Step 15 Print an Income Statement and a Statement of Changes in
Owners Equity. When you print the
Step 16 Print a Balance Sheet. nancial statements, use the
custom Income Statement,
IMPORTANT: Save your work for the mini practice set before you perform custom Statement of
the closing process. Changes in Owners Equity,
and <Standard> Balance
Step 17 Click the Save Pre-closing Balances button in the Glencoe Sheet report.
Smart Guide window.
Note: When this button is clicked for the rst time, balances
will be saved automatically. When this button is clicked sub-
sequent times, a dialog box appears asking you if you want to
overwrite previously saved pre-closing balances.
Step 18 Close the scal year.
Step 19 Print a Post-Closing Trial Balance.
Analyze Your Work
Step 20 Complete the Analyze activity.
Step 21 Complete the Audit Test.
End the Session
Step 22 Click the Close Problem button in the Glencoe Smart Guide
window and select a save option as directed by your teacher.
.OTES
Continue from a Previous Session
Use the reports you
If you were previously directed to save your work on the network, prepared to complete the
select the problem from the drop-down menu and click OK. Analyze activity and to
The system will retrieve your les from your last session. complete the Audit Test.
If you were previously directed to save your work on a oppy
disk, insert the oppy, select the corresponding problem from
the drop-down menu, and click OK. The system will retrieve
your les from the oppy disk.

Copyright by The McGraw-Hill Companies. All rights reserved.


How do you search for a specic transaction in an
Account Reconciliation? On a separate sheet of paper,
explain how to do this.

256 Mini Practice Set 2


Name Date Class

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.

Step 4 Use the Reconcile option to reconcile the bank statement.

4)0 If you use the Reconcile feature, QuickBooks automatically inserts


the general journal entry for service charges behind the scenes.

Prepare a Report and Proof Your Work


Step 5 Print a Detail Reconciliation report.
Copyright by The McGraw-Hill Companies. All rights reserved.

Step 6 Print a Journal report.


Step 7 Proof your work. Make any corrections needed and print a revised
report, if necessary.

4)0 While viewing a Journal report, you can double-click on an


entry to display it in the Account Register window. Double-click
the entry once more to return to the Make General Journal
Entries window. You can edit the transaction and then close the
window to see an updated report.

Step 8 Print the Cash in Bank Register.


Step 9 Print a General Ledger report. Display the Debit and Credit columns.
Step 10 Print a Trial Balance.
Step 11 Print a Prot & Loss report.

Mini Practice Set 2 257


Name Date Class

Step 12 Print a Balance Sheet.


Step 13 Close the scal year. .OTES
Step 14 Print a Post-Closing Trial Balance.
When you print the
Analyze Your Work Prot & Loss report, you
Step 15 Choose Vendors & Payables from the Reports menu. will need to modify the
Select Vendor Balance Summary. report title to read Income
Step 16 Click the Modify Report button. Statement.
Step 17 Type 12/01/2010 in the From eld and 12/31/2010 in
the To eld. Press Tab.
Step 18 Complete the Analyze activity.
Step 19 Complete the Audit Test. .OTES
Use the reports you
End the Session
prepared to complete the
Step 20 It is recommended that you back up your work for Analyze activity and to
this session. complete the Audit Test.

Use QuickBooks Help to nd out how to undo the last


QuickBooks Guide

completed account reconciliation. On a separate sheet of


paper, explain how to do this.

Copyright by The McGraw-Hill Companies. All rights reserved.

258 Mini Practice Set 2


Name Date Class

MINI PRACTICE SET


Fast Track Tutoring Service
2
Audit Test
Directions: Use your completed solutions to answer the following questions.
Write the answer in the space to the left of each question.
1. Did the transaction on December 18
increase or decrease owners capital?
2. What was the balance in the
Private Lessons Fees account on
December 23?
3. Did the transaction on December 8
increase or decrease accounts
receivable?
4. What was the amount of ofce
supplies purchased during the
month?
5. What was the checkbook balance
after the bank service charge was
recorded on the check stub?
6. What account was debited to record
the bank service charge amount?
7. What was the total amount of
outstanding checks listed on the
bank reconciliation statement?
8. To which creditor did Fast Track
Copyright by The McGraw-Hill Companies. All rights reserved.

Tutoring Service owe the most


money on December 31?
9. What was the balance of the owners
capital account reported on the
trial balance?
10. To what section of the work sheet
was the balance of the Jennifer
Rachael, Withdrawals account
extended?

Mini Practice Set 2 259


Name Date Class

11. What was the total of the Income


Statement Debit column of the
work sheet before the net income
or net loss was determined?
12. What was the amount of net
income or net loss for December?
13. What was the amount of total
revenue for the period?
14. From what source did Fast Track
Tutoring Service earn most of its
revenue?
15. What were the total expenses for
the month?
16. Did all the temporary capital
accounts appear on the income
statement?
17. How many asset accounts were
listed on the balance sheet?
18. What were Fast Track Tutoring
Services total liabilities at the end
of the month?
19. How many closing entries were
needed to close the temporary
capital accounts?
20. To close Rent Expense, was the
account debited or credited?
21. How many accounts in the general

Copyright by The McGraw-Hill Companies. All rights reserved.


ledger were closed?
22. The nal closing entry closed
which account?
23. How many accounts were listed on
the post-closing trial balance?
24. What was the balance in the Jennifer
Rachael, Capital account reported
on the post-closing trial balance?
25. What were the debit and credit totals
of the post-closing trial balance?

260 Mini Practice Set 2

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