030) Peachtree Exercise NEW COMPANY PRCTICA XI PARTNERSHIP BUILD YOUR OWN COMPANY 1. Introduction Peachtree is a popular accounting software program used by many different kinds of organizations. It allows the user to quickly and easily create a chart of accounts for a new company. Once the chart of accounts is created, journal entries can be entered and financial statements can be quickly and easily prepared. 1. In this short exercise the student will create a chart of accounts for a new company and save the files to disk for later use in journalizing transactions and preparing financial statements. 1. Bringing up Peachtree 1. Click on the Windows Start Button. Select Programs. 2. Select Accounting Applications 3. Select Peachtree Complete Accounting Educational Version 4. Select Peachtree Complete Accounting 5. Close Peachtree Online Update window 1. Setting up a new company 1. Select Set Up a New Company 2. Go through the New Company Setup - Introduction Wizard 1. Company Information Page 1. In company name cell, select a name which contains your last name. 2. Write down your NAME MERCHANDISING as you will have to retrieve this precise file. 3. Use 9800 College Way North, Seattle, WA 98103 as address. 4. Use 207-527-3830 for telephone number 5. Use Federal ID # of 81-1234567. Leave other tax ID cells blank. 6. Select PARTNERSHIP as the form of business type. 7. Select Next 1. Chart of Accounts 1. Select default Set up a BUILD YOUR OWN COMPANY 1. Select the default Accrual Accounting 2. Select the default Real Time 3. For Accounting Periods select the default 12 monthly accounting periods 4. Select default Year 2009 and current month for accounting periods and fiscal year. 5. Accept the defaults relating to terms and inventory costing 6. At Congratulations window, select No I do not need the Setup Checklist 7. Select Finish 7 Journ From 1. As 8. Select MENU Maintain Customers Prospects Vendors Employess Chart of Accounts Inventory Items Item Prices Job Costs Company Information Setup Check Lists Memorized Transactions Default Information Sales Taxes Users 1. Select New set up chart of account and enter the following accounts: No. 101 Cash, No. 112 Accounts Receivable. No. 125 Merchandise Inventory. No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Patent, No. 159 Accumulated Depreciation - Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 213 Unearned Revenue, No. 214 Notes Payable, No. 215 Sales Tax Payable, No. 216 Fica & Medicare Tax Payable, No. 217 Income Tax Withholding. No. 218 Union Dues Payable, No. 219 FUTA Tax Payable, No. 220 SUTA Tax Payable, No. Interest Payable 221, No. 301 Joe Blink Capital, No. 302, Joe Blink Drawing. No. 303 Paul Capital, No. 304, Paul Drawing. No. 350 Income Summary, No. 400 Sales, No. 410 Sales Discount, No. 415 Sales return & Allowances, No. 622 Cost of Good Sold, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense. No. 722 Insurance Expense, No. 726 Salaries Expense, No. 727 Interest Expense, No. 728 Payroll Tax Expense Clasify the NEW ACCOUNTS as: Accounts Payable = Cuentas por Pagar Accounts Receivable Cuentas por Cobrar Accumulated Depreciation - Depreciacin Acumulada Cash = Caja y Bancos Cost of Sales - Costo de Ventas Equity - doesn't close (Corporation) - Capital, no cierra Equity - gets closed (Proprietorship) - Capital, se cierra Equity - Retained Earnings - Utilidades Retenidas Expenses = Gastos Fixed Assets Activos Fijos Income - Ingresos / Ventas Inventory - Inventario Long term liabilities - Pasivo a Largo Plazo Other assets - Otros Activos Other current assets - Otros Activos Corrientes Other current liabilities - Otros Pasivos Corrien UK UWN COMPANY 50-os 1. Peachtree is a popular accounting software program used by many different kinds of organizations. It allows the user to quickly and easily create a chart of accounts for a new company. Once the chart of accounts is created, journal entries can be entered rial statements can be quickly and easily prepared 1. Journal Entries From Tasks Drop Down Menu, select General Journal Entry As you enter journal entries, click on spy glass in Account Number Cell and enter the appropriate account number. After each joumal entry click Save. For now, leave the description cells blank. Now use Peachtree to record the following transactions. Joe Blink and his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. lle. July 1 Joe and Paul each invest $68,000 cash in a new partnership 1 Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. 1 Purchased cleaning supplies for $2,100 on account 2 Purchased used truck from Carter for $8.000, paying $3.000 cash and the balance on account. 2 Sold merchandise that cost $3,500 to Rivera's Co. for $9.000 under credit terms of 2/10/60 FOB shipping point, Invoice dated July 2 subject to a 9% sales tax. Received $9,054 in advance for merchandise to take place on July 12. 3 Blink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing $5,000 account payable to Carter. 4. Paid $125 cash for freight charges on the purchase of July 1 4. Paid $2,800 cash on one-year Insurance policy effective July 1. 4. Blink's issued a $150,000, 4-year, 12% note at face value to Forest Hills Bank and recelved $150,000 cash. The note requires annual interest payments each December 31. 5. Blink's pays the note plus interest to Carter. (July 3) 6 Blink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. 8. Sold merchandise that cost $800 to customers for $1,500 cash, FOB shipping point. Invoice dated July 8, subject to a 9% sales tax. 12 Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2, Invoice dated July 2, subject to a 9% sales tax. IS Bink's weekly payroll of $30,000 entirely subject to F.L.C.A. and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,420 and union dues of $99 deducted. Journal entry to record salaries and wages paid. Bink's purchased a patent for $20,000. Purchased merchandise form Boden Company for 58,000 under credit ferms of 115, /30, FOB shipping point, invoice dated July 18. 19. Received $6,000 in advance merchandise to take place on August 10. Paid $100 gas and oil for the month. Sold merchandise that cost $1,800 to Creek Co. for $6,000 under credit terms of 2/10, 100 FOB shipping point. Invoice dated July 31, subject to a 9% sales tax. 21 Go throuch the New Couny L 22 25. 27. Purchased cleaning supplies for $1,300 on account. Received a $400 credit memorandum form Boden Co. for the return of part of the merchandise purchased on July 18 Received the balance due from Creek Co. for the invoice dated July 21, net of the Discount Paid part-time receptionist for two weeks 'salary, $1.900. Bink's weekly payroll of $30,000 entirely subject to F.I.C.A. and Medicare 7.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. Each partner withdrew $800 cash for personal use. 30. 31 31 Use the following information to journalize and post adjusting entries for the month: 1) Depreciation on equipment for the month was $450. 2) An inventory count shows S670 of cleaning supplies on hand at July 31. 3) Accrued but unpaid employee salaries were $550. 4) One-twelfth of the insurance expired. 5) Merchandise ending inventory is $ 580 by FIFO method. 6) Record the July 31 accrued interest payable. 7) Blink's weekly payroll of $38,000 entirely subject to F.L.C.A. and Medicare 17.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. Remember to click Save after you enter the Dr and Cr for each transaction. Journalize and post closing entries and complete the closing process. Joe and Paul agree to divide profits or losses for Joe and 4 for Paul. 1. Financial Reports From Reports Drop Down Menu, select General Ledger Select General Journal from Report List (double click to pull up journal). Select Options Icon, select Fields, Delete Von Transaction Description Select Show on GL Account Description. Click OK. Select Print 1. From Reports Drop Down Menu, select Financial Statements then select Standard Income Statement. Select Options loon and remove check mark opposite Show Zero Amounts. Click OK. Now select Print. 1. Then select Retained Earnings and Balance Sheet. Select Print. 2. Close Financial Reports Window 1. Submit your printouts to me. Be sure your printouts show your company name. 030) Peachtree Exercise NEW COMPANY PRCTICA XI PARTNERSHIP BUILD YOUR OWN COMPANY 1. Introduction Peachtree is a popular accounting software program used by many different kinds of organizations. It allows the user to quickly and easily create a chart of accounts for a new company. Once the chart of accounts is created, journal entries can be entered and financial statements can be quickly and easily prepared. 1. In this short exercise the student will create a chart of accounts for a new company and save the files to disk for later use in journalizing transactions and preparing financial statements. 1. Bringing up Peachtree 1. Click on the Windows Start Button. Select Programs. 2. Select Accounting Applications 3. Select Peachtree Complete Accounting Educational Version 4. Select Peachtree Complete Accounting 5. Close Peachtree Online Update window 1. Setting up a new company 1. Select Set Up a New Company 2. Go through the New Company Setup - Introduction Wizard 1. Company Information Page 1. In company name cell, select a name which contains your last name. 2. Write down your NAME MERCHANDISING as you will have to retrieve this precise file. 3. Use 9800 College Way North, Seattle, WA 98103 as address. 4. Use 207-527-3830 for telephone number 5. Use Federal ID # of 81-1234567. Leave other tax ID cells blank. 6. Select PARTNERSHIP as the form of business type. 7. Select Next 1. Chart of Accounts 1. Select default Set up a BUILD YOUR OWN COMPANY 1. Select the default Accrual Accounting 2. Select the default Real Time 3. For Accounting Periods select the default 12 monthly accounting periods 4. Select default Year 2009 and current month for accounting periods and fiscal year. 5. Accept the defaults relating to terms and inventory costing 6. At Congratulations window, select No I do not need the Setup Checklist 7. Select Finish 7 Journ From 1. As 8. Select MENU Maintain Customers Prospects Vendors Employess Chart of Accounts Inventory Items Item Prices Job Costs Company Information Setup Check Lists Memorized Transactions Default Information Sales Taxes Users 1. Select New set up chart of account and enter the following accounts: No. 101 Cash, No. 112 Accounts Receivable. No. 125 Merchandise Inventory. No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Patent, No. 159 Accumulated Depreciation - Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable, No. 213 Unearned Revenue, No. 214 Notes Payable, No. 215 Sales Tax Payable, No. 216 Fica & Medicare Tax Payable, No. 217 Income Tax Withholding. No. 218 Union Dues Payable, No. 219 FUTA Tax Payable, No. 220 SUTA Tax Payable, No. Interest Payable 221, No. 301 Joe Blink Capital, No. 302, Joe Blink Drawing. No. 303 Paul Capital, No. 304, Paul Drawing. No. 350 Income Summary, No. 400 Sales, No. 410 Sales Discount, No. 415 Sales return & Allowances, No. 622 Cost of Good Sold, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense. No. 722 Insurance Expense, No. 726 Salaries Expense, No. 727 Interest Expense, No. 728 Payroll Tax Expense Clasify the NEW ACCOUNTS as: Accounts Payable = Cuentas por Pagar Accounts Receivable Cuentas por Cobrar Accumulated Depreciation - Depreciacin Acumulada Cash = Caja y Bancos Cost of Sales - Costo de Ventas Equity - doesn't close (Corporation) - Capital, no cierra Equity - gets closed (Proprietorship) - Capital, se cierra Equity - Retained Earnings - Utilidades Retenidas Expenses = Gastos Fixed Assets Activos Fijos Income - Ingresos / Ventas Inventory - Inventario Long term liabilities - Pasivo a Largo Plazo Other assets - Otros Activos Other current assets - Otros Activos Corrientes Other current liabilities - Otros Pasivos Corrien UK UWN COMPANY 50-os 1. Peachtree is a popular accounting software program used by many different kinds of organizations. It allows the user to quickly and easily create a chart of accounts for a new company. Once the chart of accounts is created, journal entries can be entered rial statements can be quickly and easily prepared 1. Journal Entries From Tasks Drop Down Menu, select General Journal Entry As you enter journal entries, click on spy glass in Account Number Cell and enter the appropriate account number. After each joumal entry click Save. For now, leave the description cells blank. Now use Peachtree to record the following transactions. Joe Blink and his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. lle. July 1 Joe and Paul each invest $68,000 cash in a new partnership 1 Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. 1 Purchased cleaning supplies for $2,100 on account 2 Purchased used truck from Carter for $8.000, paying $3.000 cash and the balance on account. 2 Sold merchandise that cost $3,500 to Rivera's Co. for $9.000 under credit terms of 2/10/60 FOB shipping point, Invoice dated July 2 subject to a 9% sales tax. Received $9,054 in advance for merchandise to take place on July 12. 3 Blink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing $5,000 account payable to Carter. 4. Paid $125 cash for freight charges on the purchase of July 1 4. Paid $2,800 cash on one-year Insurance policy effective July 1. 4. Blink's issued a $150,000, 4-year, 12% note at face value to Forest Hills Bank and recelved $150,000 cash. The note requires annual interest payments each December 31. 5. Blink's pays the note plus interest to Carter. (July 3) 6 Blink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. 8. Sold merchandise that cost $800 to customers for $1,500 cash, FOB shipping point. Invoice dated July 8, subject to a 9% sales tax. 12 Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2, Invoice dated July 2, subject to a 9% sales tax. IS Bink's weekly payroll of $30,000 entirely subject to F.L.C.A. and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,420 and union dues of $99 deducted. Journal entry to record salaries and wages paid. Bink's purchased a patent for $20,000. Purchased merchandise form Boden Company for 58,000 under credit ferms of 115, /30, FOB shipping point, invoice dated July 18. 19. Received $6,000 in advance merchandise to take place on August 10. Paid $100 gas and oil for the month. Sold merchandise that cost $1,800 to Creek Co. for $6,000 under credit terms of 2/10, 100 FOB shipping point. Invoice dated July 31, subject to a 9% sales tax. 21 Go throuch the New Couny L 22 25. 27. Purchased cleaning supplies for $1,300 on account. Received a $400 credit memorandum form Boden Co. for the return of part of the merchandise purchased on July 18 Received the balance due from Creek Co. for the invoice dated July 21, net of the Discount Paid part-time receptionist for two weeks 'salary, $1.900. Bink's weekly payroll of $30,000 entirely subject to F.I.C.A. and Medicare 7.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. Each partner withdrew $800 cash for personal use. 30. 31 31 Use the following information to journalize and post adjusting entries for the month: 1) Depreciation on equipment for the month was $450. 2) An inventory count shows S670 of cleaning supplies on hand at July 31. 3) Accrued but unpaid employee salaries were $550. 4) One-twelfth of the insurance expired. 5) Merchandise ending inventory is $ 580 by FIFO method. 6) Record the July 31 accrued interest payable. 7) Blink's weekly payroll of $38,000 entirely subject to F.L.C.A. and Medicare 17.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. Remember to click Save after you enter the Dr and Cr for each transaction. Journalize and post closing entries and complete the closing process. Joe and Paul agree to divide profits or losses for Joe and 4 for Paul. 1. Financial Reports From Reports Drop Down Menu, select General Ledger Select General Journal from Report List (double click to pull up journal). Select Options Icon, select Fields, Delete Von Transaction Description Select Show on GL Account Description. Click OK. Select Print 1. From Reports Drop Down Menu, select Financial Statements then select Standard Income Statement. Select Options loon and remove check mark opposite Show Zero Amounts. Click OK. Now select Print. 1. Then select Retained Earnings and Balance Sheet. Select Print. 2. Close Financial Reports Window 1. Submit your printouts to me. Be sure your printouts show your company name