PEACHTREE COMPLETE 2008 WORKSHOP 3 SULLIVAN REALTY

Transcription

1 PEACHTREE COMPLETE 2008 WORKSHOP 3 SULLIVAN REALTY Sullivan Realty Mini Practice Set Reviewing the Cycle Twice This workshop adds to Peachtree skills learned in Workshops 1 and 2 so complete those workshops before beginning this one. You will also find that this workshop corresponds to the manual Mini Practice Set at the end of Chapter 5. In this workshop, you record Sullivan Realty s accounting transactions for two accounting cycles using Peachtree Complete. After recording June 2008 transactions, you will be asked to print reports and financial statements and then close the accounting period. You will then be asked to record July 2008 accounting transactions, print reports and financial statements, and close the accounting period. By completing two accounting cycles, you will see the impact of June accounting transactions on July financial statements. You will need to download the Sullivan Realty data file for Peachtree 2008 from the MyLab website before beginning this workshop. Refer to the Installing Peachtree Complete and Student Data Files document for instructions on downloading this file. PART A: THE JUNE ACCOUNTING CYCLE Open the Company Data File On June 1, 2008 John Sullivan opened a real estate office called Sullivan Realty. 1. Open the software by double clicking the Peachtree Complete 2008 icon on your desktop. 2. Open the Sullivan Realty company data file. Add Your Name to the Company Name 3. Click Maintain on the main menu and select Company Information. Add your initials to the end of the company name as illustrated in previous workshops. 4. Click OK to save your changes.

2 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page 2 Review the Chart of Accounts 5. First, review Sullivan Realty s chart of accounts by clicking Lists on the main menu and selecting Chart of Accounts. The list is illustrated next. 6. Click the Close icon to exit the Account List. Record June Transactions 7. Now record the following journal entries for June Use the Date indicated on each transaction. Enter a brief Reference and a Description for each transaction Jun. 1 John Sullivan invested $9,000 cash in the real estate agency along with $4,000 of office equipment. 1 Rented office space and paid three months advance rent, $3, Bought an automobile on account, $14, Purchased office supplies for cash, $ Purchased additional office supplies on account, $ Sold a house and collected a $6,000 commission. 8 Paid gas bill, $ Paid the salary of the office secretary, $350.

3 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page Jun. 17 Sold a building lot and earned a commission, $6,500. Payment to be received on July 8, John Sullivan withdrew $1,000 from the business to pay personal expenses. 21 Sold a house and collected a $3,500 commission. 22 Paid gas bill, $ Paid $600 to repair automobile. 30 Paid the salary of the office secretary, $ Paid the June telephone bill, $ Received advertising bill for June, $1,200. The bill is to be paid on July 2, Print Working Reports and Review Entries 8. After posting June transactions, close the General Journal Entry window and print the following June reports. a. General Journal (Check figure = $50,507) b. General Ledger Trial Balance (Check figure = $44,350) Review your printed reports. If you find an error then make corrections using the procedures illustrated in previous workshops. Record June Adjusting Entries 9. Open the General Journal Entry window and record the following adjusting journal entries. All adjustments are made as of June 30, Use "ADJ JUNE" as the Reference. a. One month of rent has expired. b. An inventory shows $50 of office supplies remaining. c. Depreciation on office equipment, $100. d. Depreciation on automobile, $200. (Note: You do not make closing entries in a computerized accounting system. The software automatically places net income/loss from the Income Statement on the Balance Sheet.) Print Final Reports and Financial Statements 10. After posting the adjusting journal entries, close the General Journal Entry window and print the following June reports using the Reports window. a. General Journal (Check figure = $52,207) b. General Ledger Trial Balance (Check figure = $44,650)

4 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page 4 c. General Ledger (Check figure for cash = $12,343) d. Income Statement (Net Income = $11,243) e. Balance Sheet (Total Assets = $38,593) Review your printed reports for errors and make corrections. Reprint all reports if corrections are made. Make a Backup Copy of June Records 11. It is always wise to back up accounting data before closing the accounting period. Create a backup file, remembering to include the name of the company in the file name. (Note: Remember that instructions can be found in the Backing Up and Restoring Your Work in Peachtree document on the MyLab website.) Close the June Period 12. You will now close the June accounting period. Closing the period completes the accounting cycle and prepares Peachtree for posting July transactions. In addition, closing the period prevents posting additional transactions to June, which also prevents changing financial results on previously reported June financial statements. 13. Click this Period icon on the toolbar to open the window illustrated next.

5 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page Highlight period 07 Jul 01, 2008 to Jul 31, 2008 and click OK. 15. When prompted to print your reports, click No because these reports are already printed. 16. Click No to running an Internal Review. When finished, the period icon updates to. 17. You can now continue to Part B, which follows or exit the software and return later to complete Part B.

6 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page 6 PART B: THE JULY ACCOUNTING CYCLE Open the Company Data File 1. If you exited the software after completing Part A, then open it and return to Sullivan Realty. Record July Transactions 2. Now record the following journal entries on the Date listed for each transaction. Enter a short Reference and Description for each transaction Jul. 1 Purchased additional office supplies on account, $ Paid advertising bill for June, $1, Sold a house and collected a commission, $6, Paid for gas expense, $29. 8 Collected commission from sale of building lot on June 17, Paid $300 to send employees to realtors workshop. 15 Paid the salary of the office secretary, $ Sold a house and earned a commission of $2,400. Commission to be received on August 10, Sold a building lot and collected a commission of $7, Sent a check for $40 to help sponsor a local road race to aid the poor. (This amount is not to be considered an advertising expense, but it is a business expense and is posted to Miscellaneous Expense.) 24 Paid for repairs to automobile due to accident, $ John Sullivan withdrew $1,800 from the business to pay personal expenses. 30 Paid the salary of the office secretary, $ Paid the July telephone bill, $ Advertising bill for July, $1,400. The bill is to be paid on August 2, Print Working Reports 3. After posting the journal entries, close the General Journal Entry window and print the following July reports to review your transactions. a. General Journal (Check figure = $29,849) b. General Ledger Trial Balance (Check figure = $61,550)

7 Peachtree Complete 2008 Workshop 3 Sullivan Realty Page 7 If you find a mistake then correct it using the procedures illustrated in previous workshops. Reprint the reports if necessary. Record July Adjusting Entries 4. Open the General Journal Entry window and record July adjusting journal entries using the following information. All adjustments are as of July 31, Enter "ADJ JULY" as the Reference. a. One month of rent has expired. b. An inventory shows $90 of office supplies remaining. c. Depreciation on office equipment, $100. d. Depreciation on automobile, $200. Print Final Reports and Financial Statements 5. After posting the adjusting journal entries, close the General Journal Entry window and print the following July reports. a. General Journal (Check figure = $31,809) b. General Ledger Trial Balance (Check figure = $61,850) c. General Ledger (Check figure for cash = $27,194) d. Income Statement (Net Income for July = $10,391) e. Balance Sheet (Total Assets = $48,084) Review your printed reports and correct any mistakes. Reprint all reports if corrections are made. Back up July Records Close the Period 6. Before closing the period, backup your data file. 7. Close the July accounting period by setting the period to 08 Aug 01, 2008 to Aug 31, 2008 and click OK. 8. Click No to printing reports and No to running an Internal Review. 9. Confirm that the period icon has changed to Period 8. Exit the Software 10. You have now completed the workshop and can exit the software.