Problem 7– 4B

Open Peachtree and click on “Create a new company”.

Select the Next button.

In the Company Name box type “Slater_11E_7-4B_Stud”.

In the Business Type box select “Sole Proprietorship” from the pull down menu.

Click on the Next button.

Choose the radio button which reads “Use a sample business type that closely matches your company”.

Select the Next button.

Select the “Service Company” under Select a business type.

Click on the Next button.

Click on the “Accrual” radio button.

Click on the next button.

Click on the “Real Time” radio button.

Click on the Next button.

Click on the “12 monthly accounting periods per year” radio button.

Click on the Next button.

Set the selections to January 2010 for the first period of your fiscal year.

Click on the Next button.

Click on the Finish button.

You are now ready to work Problem 7-4B:

From the Maintain menu, select Employees/Sales Reps. If prompted, select No to set up the Payroll Wizard.

In the Employee ID box type “1.”

Tab

In the Name box type “Andy” in the First box.

Tab

Tab

Type “Aulson” in the second box.

Note: if you had other data on the employees you would enter it at this time.

Select the Pay Info Tab.

Change the Pay Method box to “Salary.”

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Tab

Change the Pay Frequency box to “Bi-weekly.” Uncheck the defaults in the first row. Account – select 6000 Wages Expense.

In the Salary Pay Rate box type “800”.

Select the Withholding Info Tab.

In the Federal and State Allow boxes type “3.”

Select Save.

Select Save & New.

Continue entering the other three employees using the same method.

When you have finished entering the data select the Close icon on the Maintain Employees screen.

There are two methods to write the employee checks.

In the first method you will select all employees you want to pay based on the data already entered – this method works well if each employee’s check and deductions remain the same each pay period.

Select Tasks from the Menu bar.

Select the Select for Payroll Entry submenu.

Change the date to December 5, 2010.

Select OK.

The Select Employees to Pay screen will come up.

You may deselect any employee at this time or if all employees listed are to be paid then select Print Preview .

Note: the tax deductions will not match the amounts calculated in the textbook problem – this is due to different tax rates and tables already set in Peachtree.

Close this screen without saving any data.

The second method allows you to view each employee individually in the check writing screen. This method works well if you have hourly employees or an employee who has a change to his or her pay, such as overtime, or a bonus.

Select Tasks from the Menu bar.

Select Payroll Entry.

Select the correct Cash account for making payroll (Checking Account for this problem).

Select OK.

Use the Lookup Button to select any employee.

Once you have selected the employee Peachtree will calculate gross pay, deductions, and net pay based on the data input and defaulted tax information for the employee.

You would need to input the correct check number and date, and then Print Preview the check.

Close the screen without saving the record.

Save and/or backup your work based on provided instructor policy.