1. Chapter 09: New Company Setup and Beginning Balances
McGraw-Hill/Irwin
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

2. New Company Setup and Beginning Balances, p. 279
Chapter 9 begins Part 2 of the book—Peachtree Complete Accounting 2012 for Service Businesses. In this part of the book, you are the owner of an accounting practice that does the monthly record keeping for several service businesses.
In Chapter 9, you set up two service businesses—Mark Foltz Designer and the end-of chapter exercise, Design by Your Name. You set up a business using one of PCA’s sample companies. Then, you record October 1, 2012 beginning balances from Mr. Foltz’s balance sheet.
The chapters in Part 2 work together--the service businesses set up in Chapter 9 are continued in Chapters 10 and 11.
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3. Peachtree Tips
In Chapter 9, beginning balances are entered from the October 1, 2012 balance sheet (text page 303). This means that the chart of accounts beginning balances must be entered for the previous month—September 1 through 30, See Entering Chart of Accounts Beginning Balances text pages 302 through 308. Review steps 2, 3, and 4 on pages
The businesses that you set up in Chapter 9 are continued in Chapters 10 and 11.
Remember to use a unique name for the businesses that you set up in Chapter 9. For example, use your first and last name Designer to identify the chapter company and Design your first and last name to identify the business set up in Exercise 9-1.
When a company is set up in Peachtree, a shortened named is assigned to the company; for example, the shortened company name for Mark Foltz Designer is marfolde. The Windows 7 default location for Mark Foltz Designer is C:\Sage\Peachtree\Company\marfolde. If the student’s first and last name is used, the shortened company name differs. Windows Vista and XP default locations differ. Refer to File Management, pages xviii-xix.
Use Windows Explorer to see the file size, text pages
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4. Peachtree Tips (concluded)
You can restore to an existing company—one that is previously set up—or restore a new company, bypassing the process of creating a new company. The Restore Wizard includes two options on the Select Company window: An Existing Company and A New Company. If A New Company is selected, then the company will be named the same as the backup file selected.
Let’s say you want to restore a backup file for a company that is not set up in Peachtree; for example, a back up file exists but the company is not shown as a Peachtree company.
If you start Peachtree and the appropriate company cannot be opened, use the Restore Wizard to select A New Company. Using the appropriate backup file, and the selection for A New Company, you can start where you left off the last time Peachtree was used.
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5. Peachtree Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)
Backing Up Chapter 9
In the textbook, detailed steps are shown for backing up to a USB drive. The chart on pages shows the size of the backup files, Excel files, and PDF files.
Peachtree Backup (.ptb)
Excel (.xlsx) and Adobe (.pdf)
Kilobytes
Page Nos.
Chapter 9 Chart of Accounts.ptb
920 KB
Chapter 9 Beginning Balances.ptb
958 KB
Chapter 9_Chart of Accounts Beginning Balances.xlsx
17 KB
Chapter 9_Balance Sheet.pdf
8 KB
Chapter 9_Chart of Accounts.pdf
39 KB
315
Exercise 9-1.ptb
912 KB
Exercise 9-2.ptb
916 KB
324
Exercise 9-2_Chart of Accounts and Beginning Balances.xlsx
18 KB
Chapter 9-2_Chart of Accounts.pdf
38 KB
Exercise 9-2_Balance Sheet.pdf
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6. Business Status Navigation Center, p. 287
Period /01/12- 10/31/12
Navigation Bar
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7. Shortened name for Mark Foltz Designer (Read me box, p. 287)
A folder is set up on the hard drive for Mark Foltz Designer— C:\Sage\Peachtree\Company\ marfolde. (If you are using Vista or XP, refer to Company Data Files location, text page xix.)
Peachtree’s shortened name is the first three letters from the first word (mar), the second word’s first three letters (fol), the third word’s first two letters (de).
If you used your first and last name, the shortened name will differ.
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8. Entering Chart of Accounts Beginning Balances, pages 302-308
Follow steps 1-3 on pp. 303 and 304 to select the beginning balance period. (The Select Period window is shown below step 3 on p. 304).
Make sure you have selected From 9/1/12 through 9/30/12. You cannot change the period later. Then, click on <OK>.
Make sure that From
9/1/12 through
9/30/12 is selected.
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9. Chart of Accounts Beginning Balances window, pp. 305-307
Make sure that your beginning balances are as of September 30, If you enter your balances for the wrong month (period), your financial statements will not show the current month and year-to-date amounts correctly in Chapter 11.
Complete steps 7 and 8, pp
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10. Display the September 30, 2012 Balance Sheet, pp. 307-308
Follow steps 1-3 on page 307 to change the date displayed on the balance sheet. The <Standard> Balance Sheet Options window is shown on page 307.
September 30 ending balances are October 1, 2012 beginning balances. Display the balance sheet for September 30 so you can check that you entered chart of accounts beginning balances correctly.
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11. Glossary of Terms Chapter 9
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12. Posting, p Part 2 opener
One of the best features of a computerized accounting system is how quickly posting is done. Once entries are recorded and checked for accuracy, posting is a click of the mouse. All entries are posted to accounts in the general ledger and account balances are calculated—fast, easy, and accurate. The diagram illustrates this process.
Journalize and Post
General Ledger
Financial Statements
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13. Balance Sheet, p. 302
A Balance Sheet lists the types and amounts of assets, liabilities, and equity as of a specific date. The balance sheet is also called a statement of financial position.
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14. Statement of Financial Position, p. 302
A balance sheet is also called a statement of financial position.
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15. Going to the Net, pp
Access information about the chart of accounts at Read the information on Wikipedia’s chart of accounts website.
What is the chart of accounts?
List four asset accounts, two liability accounts, two equity accounts, one revenue account, and three expense accounts.
What is the trial balance?
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16. Analysis Questions, p. 325
What chart of accounts beginning balance date is used for entering October 1, 2012 account balances in Peachtree?
Beginning balances must be set for the preceding month; for example, September 1 through 30, The September 30 ending balance is the October 1 beginning balance.
  September 1 through 30, 2012 is selected because Peachtree posts on the last day of the month (September 30). When 9/1/12 through 9/30/12 is selected as the chart of accounts beginning balance period, task windows start on October 1, 2012, and reports are dated October 31, 2012.
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17. Analysis Questions, p. 325
How does the account beginning balance date affect the current month and year-to-date amounts on the financial statements?
In order for the financial statements to show the correct current month and year-to-date amounts, beginning balances must be set for the previous month. In Chapter 9 that means chart of accounts beginning balances are set for September 30, 2012.
NOTE: In Chapters 10 and 11, students complete transactions for October, November, and December 2012.
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18. Shortened Company Name
Assessment Rubric, p. 325
Task
Date
Selections
Window
Shortened Company Name
October 1, 2012 Beginning Balances
September 30, 2012
From the menu bar, File; New Company, or from Peachtree's startup window, Create a New Company.
Create a New Company, click Next to make selections to complete setting up a new company.
Eight characters: first three letters from the first word, first three letters of the second word, two letters from third word.
Eight characters for a Peachtree shortened name; for example, for Mark Foltz Designer: marfolde.
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19. Online Learning Center
Go online to for additional resources. Link to Student Edition, select Chapter 9.
Interactive Testing: Online multiple-choice and true and false questions. Tests are graded and can be ed to instructor.
Glossary of Terms: Boldfaced/italicized words within chapter.
Feature Quizzes: Includes user interface questions, matching, and review of chapter concepts with immediate feedback.
Flash Videos: Demonstration of setting up a new company.
PowerPoints: Narrated slides.
Assessment Rubrics: Reviews journal entries, reports, navigation centers, modules, and task windows.
Going to the Net: Internet research.
QA Templates: End-of-chapter summary and review questions and analysis question.
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