1. Chapter 11: Completing Quarterly Activities & Closing the Fiscal Year McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Completing Quarterly Activities and Closing the Fiscal Year Chapters 9, 10 and 11 work together. In Chapter 11, you continue recording financial information for Vernon Firestone Designer. You complete the Computer Accounting Cycle for November and December. Mr. Firestone’s transaction registers and bank statements are used as source documents. At the end of December, which is also the end of the fourth quarter, you complete adjusting entries for Mr. Firestone, print financial statements, and close the fiscal year. 11-2

3. PCA’s Computer Accounting Cycle, p. 362 PCA's Computer Accounting Cycle 1.Change accounting periods. 2.Journalize entries. 3.Post entries to the General Ledger. 4.Account Reconciliation. 5.Print the General Ledger Trial Balance (unadjusted). 6.Journalize and post adjusting entries. 7.Print the General Ledger Trial Balance (adjusted). 8.Print the financial statements: Balance Sheet, Income Statement, Statement of Cash Flow, Statement of Retained Earnings, and Statement of Changes in Financial Position. 9.Close the fiscal year. 10.Interpret accounting information. 11-3

4. Peachtree Tips Peachtree Tips You must complete Chapters 9 and 10 before starting Chapter 11. To check that you have completed Chapter 10, display Vernon Firestone Designer’s general ledger trial balance. Compare it to the one shown on page 345. This is the trial balance at the end of Chapter 10. If any of the account balances are incorrect on the general ledger trial balance, follow the steps for Editing Journal Entries on page 344. Then, reprint the trial balance. 11-4

5. Peachtree Tips (concluded) Peachtree Tips (concluded) If you do not get the correct year-to-date amounts on the Income Statement (p. 389), Statement of Cash Flow (p. 391) and Statement of Changes in Financial Position (p. 392), you may have set your chart of accounts beginning balances in Chapter 9 incorrectly (refer to pages 301-305, Entering Chart of Accounts Beginning Balances). Vernon Firestone ’s beginning balance sheet is dated October 1, 2010 (p. 302). Since Peachtree posts on the last day of the month (September 30), you must set beginning balances for the preceding month—September 1 through 30, 2010. This is shown on the Select Period window below step 3 on page 303. 11-5

6. Backing Up Chapter 11 Backup Name (.ptb) Excel (.xlsx)KilobytesPages Chapter 11 November.ptb1,372 KB373-374 Chapter 11 December UTB.ptb1,375 KB381-382 Chapter 11 December.ptb1,383 KB393 Chapter 11_Financial Statements.xlsx27 KB393-394 Chapter 11 EOY.ptb1,390 KB400-401 Chapter 11_Post Closing Trial Balance.xlsx12 KB401 Continued. The chart below shows the size of the backups made in Chapter 11. Refer to textbook pp. 275-276 for backups and the Excel files saved in Part 2-Chapters 9, 10, 11 and Project 1. 11-6

7. Backing Up Chapter 11 (concluded) Backup Name (.ptb) Excel (.xlsx)KilobytesPages Asset depreciation.xls (Going to the Net)14 KB402-403 Exercise 11-1.ptb408 Exercise 11-2 Unadjusted Trial Balance.ptb411 Exercise 11-2 Financial Statements.ptb411 Exercise 11-2_Financial Statements.xlsx411 Exercise 11-2 End of Year.ptb411 Exercise 11-2_Postclosing Trial Balance.ptb411. The chart below shows the size of the backups made in Chapter 11. Refer to textbook pp. 275-276 for backups and Excel files saved in Part 2-Chapters 9, 10, 11 and Project 1. 11-7

8. Change accounting periods, pp. 364-365 Click on Tasks, then System. From the System menu, select Change Accounting Period. Select 11-Nov 01, 2010 to Nov 30, 2010. The Change Accounting Period window is shown on p. 365. Click on. Click on at the window prompt. 11-8

9. Data File Statistics, pp. 374-375 From the menu bar, click Help, Customer Support and Service, then select File Statistics. The File Statistics window shows the shortened name for the company. If you used your name as the company name, your shortened name will differ. The Data File Statistics window is shown on page 375. Click OK to close the Data File Statistics window. 11-9

10. Glossary of Terms Chapter 11 11-10

11. General Ledger System, pp. 361-362 The complete collection of accounts (chart of accounts) of a company, transactions associated with these accounts, and account balances for a specified period of time. In Peachtree, the General Ledger System is the combination of all journal entries that have been shown on the company’s financial statements. 11-11

12. Unearned revenue, p. 385 Unearned revenue is a liability account used to report advance collections from customers or clients. 11-12

13. Peachtree’s Resource Center, pp. 401-402 1.Read the Peachtree Resource Center information on pages 400-401. 2.To access Peachtree’s Products & Services website, link to www.peachtree.com/productsServices/whatsNew/ www.peachtree.com/productsServices/whatsNew/ 3.In the New Features Videos list, select Order Process Workflow. 4.Watch the YouTube video. (This information is for Peachtree Quantum software.) 11-13

14. Internet Activity, p. 402 1Go to the book’s website at www.mhhe.com/yacht2010.www.mhhe.com/yacht2010 2Link to Student Edition. 3In the Choose a Chapter field, select Chapter 11. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link Internet Activities; then link to Part 2 Internet Activities for Chapter 9-11. Select Open or Save. 4Scroll down the window to UNDERSTANDING ACCOUNTING TERMS CONTINUED – Chapter 11. Read steps 1 – 3. 5Follow the steps shown on the book’s website to complete this Internet activity. 11-14

15. Going to the Net, pp. 402-403 Access the asset depreciation schedule at http://office.microsoft.com/en-us/templates/TC011460991133.ASPXhttp://office.microsoft.com/en-us/templates/TC011460991133.ASPX. (Hint: You may need to copy/paste the website address into your browser. Excel 2000 or later is required.) Click. Save the asset depreciation schedule. An Asset Depreciation worksheet appears. Complete the following fields. Press to move between fields. Date:1/1/2006 Initial cost:7000 Salvage value:0 Useful life (years)7 Click on Asset Depreciation. Type Furniture to replace it. From Excel’s menu bar, make the selections to Print. Save. The suggested file name is Asset depreciation.xls. (The default is an.xls file.) What depreciation methods are shown? Close Excel; close Internet Explorer. 11-15