Student Tutorial

Student Tutorial

General Introduction

To be successful in completing the computerized problems in your textbook you should have some basic computer skills. An Introduction to Computers class will help you to gain those basic skills.

Peachtree:

For some of the chapters you will learn how to set up your own company, simply follow the steps in the chapter problem provided. However, some chapters require that you load a data file (Peachtree Back up file) that has some of the needed data already completed.

To load the data file you will open the Peachtree software and open an existing company (a sample company may be opened). Once the company file opens select File from the Menu bar and then select Restore from the submenu. You will need to determine where your data files are stored (on a hard drive or disk) then select the correct file. You may restore this file as an Existing Company or as a New Company.

Peachtree makes use of periods to keep users from changing data in previous periods. It will be necessary for you to verify that you are working in the correct accounting period. At the bottom of the screen you will see a Peachtree Today button, the Current Date button and then the Period button select that button to change accounting periods. You will be asked if you want to run reports and complete an audit – answer no to both questions.

Any other miscellaneous requests not specifically addressed in the instructions should be answer with No.

QuickBooks:

This software program is a little more difficult to set up a new company, for this reason all chapter problems will require a data file. The QuickBooks data files are also company files – this means that you will only need to double click on the data file to open the file. You should already have the QuickBooks software loaded onto the computer for the file to open successfully.

It is suggested that you not open more than a few windows in QuickBooks at a time. It can become confusing if you have many windows open. Windows open on top of each other and the screen can appear as if only one window is open.

If the Class Tracking notification comes on go to Edit in the Menu bar then select Preferences. On the left of the screen select Accounting and then the Company Preferences tab. Deselect Use Class Tracking and the select OK.

Any other miscellaneous requests not specifically addressed in the instructions should be answer with No

Chapter 1

In this chapter you are learning the very basics of accounting. Accounting software packages are designed so that the user does not have to fully understand accounting to use them successfully. In the problems for this chapter you will show the effects of increases and decreases to accounts by recording General Journal Entries.

General Journal Entries will be discussed in a later chapter, as will Debits and Credits. You will be able to complete the problem by using the table provided in the instructions. At this point focus on the account increasing or decreasing and not on the Debit or Credit column heading.

Also, your Financial Statements may look a little different in the beginning. Verify that your Net Income or Loss is correct and that your Balance Sheet is balanced.

Both Peachtree and QuickBooks have changed the name of the Income Statement to Profit & Loss. There is no difference in the information only the name.

Peachtree provides a statement of Retained Earnings which is the same as the Statement of Owner’s Equity. QuickBooks does not provide a Statement of Owner’s Equity.

Chapter 2

Setting up a Chart of Accounts for a business should be carefully thought out before you start. You will practice setting up several simple Chart of Accounts in Peachtree. Be careful to select the correct “type” of account in the instructions.

QuickBooks takes a little more time to set up a correct Chart of Accounts for this reason you will be given all the necessary data to start your problem and will not be required to set up the Chart of Accounts. When you are ready to practice setting up a Chart of Accounts in QuickBooks it is suggested that you use the Help function provided with the software and/or a How-To Guide to walk you through.

You will continue recording transactions in the General Journal however with this chapter you will begin to focus on the impact of a debit or credit to a specific account. Neither program will allow you to go on to the next transaction until it is balance – debits equal credits.

Chapter 3

In this chapter you are learning to journalize and post. You have already put this to practice in Peachtree and QuickBooks in Chapters 1 and 2.

Recording entries into the General Journal module of either program is journalizing. Both programs automatically post to the General Ledger when you select save in the General Journal module.

Even though both programs do not let you save until your transaction is in balance you should always prepare a Trial Balance to review that you have journalized and posted to the correct accounts. Remember the Trial Balance only tells you if your debits and credits equal.

Chapter 4

Most accounting software programs eliminate the use of a worksheet. Normally a Trial Balance is run just before adjustments are made. Adjustments are then journalized and posted using the General Journal module. You would need to run a Trial Balance after making adjustments and then prepare the Financial Statements.

Peachtree has a worksheet that can be printed that aides in preparing the adjustments. QuickBooks does not provide a worksheet.

Chapter 5

QuickBooks and Peachtree both offer a closing option, this is different from actually recording closing entries – both programs automatically closes the temporary accounts and moves net income or loss into the equity account. However, it is suggested that the closing option not be used for either program.

The closing option is not necessary to produce accurate Financial Statements. This is because most accounting software programs continuously calculate Net Income or Loss. This is done automatically after each transaction is posted. This allows the user to run Financial Statements at any time with accurate information being provided.

Chapter 6

With this chapter you will begin using “modules” or “special journals”. The first will be the check writing module. When using a module or special journals you will only need to record half of the transaction. For example, with the check writing module both QuickBooks and Peachtree will automatically reduce cash (credit) you will only need to select the correct account to debit.

Modules and/or special journals also are more user friendly because they normally appear on the screen like the actually document. The user simply tabs to or clicks in the appropriate boxes and types in or selects the correct data.

When using an accounting software package generally the petty cash expenses are not recorded into the books until the petty cash fund is replenished.

Chapter 7

Because most accounting software packages require a special add-on package especially for processing payroll for this chapter we will only walk through the steps to setup company defaults and new employees for Peachtree. You will not be able to calculate payroll because we cannot match the tax amounts from the textbook because Peachtree calculates taxes based on tables downloaded each time the tax rates change. Generally accounting software packages require at the beginning of each year the user purchase the new tax tables from the software distributor before payroll can be calculated correctly.

QuickBooks also must have tax tables downloaded to the program to calculate accurate payroll.

Chapter 8

Calculating and recording payroll taxes is another function of the Payroll module. Since we are not using the modules for either Peachtree or QuickBooks you will be recording your payroll taxes and payments in the General Journal. You will prepare your 941 and 940 by hand for the textbook problem. Normally you would use the 941/940 forms provided in the Payroll module of the software program.

Chapter 9

In this chapter you will begin using the functions in the Customer module. There are several important steps that should be completed before you use this module in either Peachtree or QuickBooks. The program will work most efficiently if you set up customers completely and correctly. By inputting as much data on a customer as possible and setting up credit terms in the beginning you will not have to second guess if an invoice is correct.

Also, sales tax is an item that has to be turned on and/or set up in the system for it to work correctly. When you are ready to set up sales tax in either program refer to the Help function and/or a How-To Guide for step-by-step instructions. For this chapter your sales tax has been set up for you.

With this special journal or module your Schedule of Accounts Receivable is automatically updated as you post each transaction.

The input form looks very similar to standard invoices used in businesses everyday. This makes this module one of the more user friendly modules in both programs.

Chapter 10

This module is similar to the Customer module in chapter 9. It makes use of a Purchase Order input form that looks like most standard Purchase Order forms. This module is called the Vendor module and is used to make purchases of merchandise on account. QuickBooks and Peachtree each also provide a form for purchases made with cash.

Setting up Vendors completely and accurately at the beginning will make this module function more effectively.

The Schedule of Accounts Payable is automatically posted when the Purchase Order or Payments screen is saved.

Chapter 11

Generally accounting software packages do not make use of an Income Summary account. This is primarily due to the fact that the programs close accounts on a continual basis – calculating Net Income or Loss each time a transaction is saved.

Peachtree and QuickBooks both provide a special module for adjusting Inventory. You will not use this module so that you can work the problem in a similar way as your textbook. For this reason a Merchandise Inventory, Beginning and a Merchandise Inventory, Ending account have been set up in the Chart of Accounts to use for adjusting inventory. Follow the steps in the instructions closely to complete the adjustment.

Because worksheets are not available in either program you will need to run a Trial Balance before making adjustments.

Chapter 12

Once you have recorded the adjusting entries for a merchandise company much of the work has been done because you are journalizing and posting in the same step. Preparation of the Financial Statements is only a matter of selecting the correct menu and submenu and setting the date to the correct period.

Chapter 13

Writing off accounts in both Peachtree and QuickBooks simply requires a change to the invoice that was created for the customer(s). Follow the instructions carefully to correctly write-off individual accounts.

The estimate is recorded in the General Journal and both programs provide an Aging of Receivables report.

Chapter 14

Peachtree and QuickBooks do not have a special module for calculating Notes Payable and Receivable. The programs do allow for the calculation of finance charges; however this is a function used for penalties imposed on customers who pay late. This function would not be used for notes because late payment penalties should carry the same interest rates for all customers and would be imposed at a specific number of days late for all customers. The U.S. Fair Debt Collection Practices Act should be reviewed before charging finance charges to customers.

Chapter 15

Peachtree allows you to select the method for valuing inventory and this method must be chosen when you place the inventory item into the system.

Setting up the inventory system can be a time consuming task but is worth the effort in the long run. If you will be using the inventory module you must take the time to add each item into the system completely before recording purchase and sale transactions, otherwise the information is incorrect and useless. It is highly recommended that you get help or receive further instruction when setting up the inventory items in either program.

QuickBooks only uses the Average Cost Method for valuing inventory. There are no problems included for this chapter in QuickBooks.

If you input inventory items into either program it is assumed that you are using a perpetual inventory. You may use a periodic inventory system simply by making your entries into the General Journal and not turning on the Inventory module.

Chapter 16

With either Peachtree or QuickBooks you will need to calculate depreciation on your own. Peachtree offers an add-on package to track fixed assets and QuickBooks Pro 2006 comes with a module for compiling necessary information for accurate calculation of depreciation. Neither actually calculates the depreciation for you.

You will calculate depreciation for the problem and record it in the General Journal.

Chapter 17

There are few differences in recording transactions for a partnership from a sole proprietorship. You will need to set up additional equity accounts and withdrawal accounts. Record the transactions for the textbook problem in the General Journal.

Chapter 18

There are no special modules for calculating or recording stock transactions in QuickBooks and Peachtree. Record the transactions for the textbook problem in the General Journal

Chapter 19

There are no special modules for calculating or recording stock and dividend transactions in QuickBooks and Peachtree. Record the transactions for the textbook problem in the General Journal