Chapter 5: General Ledger & Inventory Chapter 5: General Ledger & Inventory

©The McGraw-Hill Companies, Inc. 2 of 23 General Ledger and Inventory In Chapter 5, you learn how to use the General Ledger chart of accounts. Peachtree comes with over 70 sample company charts of account. You can set up your own chart of accounts from scratch or select one of the sample companies’ charts of accounts. Chapter 5 also shows you how to use Peachtree’s inventory system. Peachtree lets you track inventory items both at the purchasing and sales level. Peachtree keeps track of cost of goods sold, stock levels, sales prices, and vendors.

©The McGraw-Hill Companies, Inc. 3 of 23 Software Objectives, p. 159 Restore data from Exercise 4-2. (This back up was made on p. 156.) Enter a new account in the chart of accounts. Enter a budget amount for an account. Make a general journal entry to transfer funds. Display the general ledger trial balance. Set up an inventory item. Record an inventory adjustment. Make two backups: one blank, formatted disk for Chapter 5; one blank, formatted disk for Exercise 5-2.

©The McGraw-Hill Companies, Inc. 4 of 23 Web Objectives, p. 159 Use your Internet browser to go to the book’s web site at Complete the Internet activity for Ask Jeeves. Complete the steps shown for this activity.

©The McGraw-Hill Companies, Inc. 5 of 23 Peachtree Tip Peachtree Tip Peachtree uses a perpetual inventory system. See page 179 for a review of how Peachtree journalizes the purchase and sale of inventory items.

©The McGraw-Hill Companies, Inc. 6 of 23 Backing Up Chapter 5 Disks Backup Name KB Page Nos. 10 of 14 A:\Chapter 5 1,249 KB of 14 A:\Exercise 5-2 1,252 KB 187 Use one blank, formatted disk to back up Chapter 5 on page 181. You will need another blank, formatted disk to back up Exercise 5-2 on page 187.

©The McGraw-Hill Companies, Inc. 7 of 23 Chapter 5 Topics 1. Software & web objectives, p Chart of Accounts, pp Getting started, pp General Journal, pp Setting up an inventory item, pp a. Inventory types, pp b. Inventory default accounts, p Inventory and purchases, pp Inventory and sales, pp Inventory adjustments, pp

©The McGraw-Hill Companies, Inc. 8 of 23 Chapter 5 Topics (concluded) 9. Backing up Chapter 5 data, p Internet Activity, p Summary and review, p. 182 a. Going to the Net, p. 183 b.Multiple choice questions, pp c. Exercise 5-1, p. 186 d. Exercise 5-2, p. 187 e. Chapter 5 index, p. 188

©The McGraw-Hill Companies, Inc. 9 of 23 Peachtree Help window, p. 161 Click on Help, then Contents and Index. Select the Contents tab. Double-click on Help for Your Specific Type of Business. Double-click on A-Z List of Business Types. Then, double- click on List of Sample Chart of Accounts. Toolbar pane Navigation pane Topic pane

©The McGraw-Hill Companies, Inc. 10 of 23 Maintain Chart of Accounts window, pp Click on Maintain, then Chart of Accounts. In the Account ID box, type In the Description box, type Money-Market Fund. Make sure Cash is selected as the Account Type. This screen is shown on p. 164.

©The McGraw-Hill Companies, Inc. 11 of 23 Completed Maintain Chart of Accounts window, p Select the Budgets tab. Complete the steps on pages This screen is shown on p. 166.

©The McGraw-Hill Companies, Inc. 12 of 23 General Journal Entry, p Complete steps 1- 9 on pages to see this screen. Select Save to post to the General Ledger.

©The McGraw-Hill Companies, Inc. 13 of 23 General Ledger Trial Balance, p. 169 Click on Reports, then General Ledger. In the Report List, double- click on General Ledger Trial Balance.

©The McGraw-Hill Companies, Inc. 14 of 23 Completed Maintain Inventory Items, pp Click on Maintain, then Inventory Items. Complete the steps shown on pages The completed Maintain Inventory Items window appears on p. 174.

©The McGraw-Hill Companies, Inc. 15 of 23 Completed Purchases/Receive Inventory window, p Click on Tasks, then Purchases/Receive Inventory. Complete steps 1 – 7 on pages This screen is shown on p Post this purchase. Press to return to the menu bar.

©The McGraw-Hill Companies, Inc. 16 of 23 Completed Sales/Invoicing window, pp Click on Tasks, then Sales/Invoicing. Complete steps 2 – 6 on pages Post the invoice. Close the window to return to the menu bar.

©The McGraw-Hill Companies, Inc. 17 of 23 Completed Inventory Adjustments window, p. 180 Click on Tasks, then Inventory Adjustments. Complete steps 2 – 4 on page 180. Post this adjustment, then close the window to return to the menu bar.

©The McGraw-Hill Companies, Inc. 18 of 23 Backing Up Chapter 5 Data, p. 181 Complete steps 1-9 on p The suggested file name is Chapter 5.

©The McGraw-Hill Companies, Inc. 19 of 23 Chapter 5: Glossary of Terms

©The McGraw-Hill Companies, Inc. 20 of 23 Perpetual inventory, p. 159 In a perpetual inventory system, an up-to- date record of inventory is maintained, recording each purchase and each sale that occurs.

©The McGraw-Hill Companies, Inc. 21 of 23 Chart of accounts, p. 160 A list of all the accounts used by a company, showing the identifying number assigned to each account Peachtree has over 70 sample charts of accounts.

©The McGraw-Hill Companies, Inc. 22 of 23 Chapter 5, Internet Activity, p Go to the book’s web site at In the Student Center list, link to Internet Activities. 3 Link to WEB EXERCISES PART 1. 4 Scroll down the screen to the Interest Activity labeled ASK JEEVES – Chapter 5. Read steps Use a word processing program to answer the questions in steps 1-4.

©The McGraw-Hill Companies, Inc. 23 of 23 Going to the Net, p. 183 Access the AccountantsWorld.com web site at Link to About Us. Read the article “Why Does Accountantsworld Exist?. 1. What does the aritcle say the accounting firm of tomorrow will be like? 2. How will accountantsworld.com serve the needs of the accounting community?