1. Chapter 2: Vendor Transactions

2. ©The McGraw-Hill Companies, Inc. 2 of 31 Vendor Transactions In Chapter 2, you learn how Peachtree handles Accounts Payable transactions with vendors When Bellwether Garden Supply orders inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account is credited.

3. ©The McGraw-Hill Companies, Inc. 3 of 31 Software Objectives, p. 53 Restore data from Exercise 1-2. (This back up was made on pp. 49-50.) Enter a purchase order. Enter and post a vendor invoice in the Purchases/Receive Inventory window. Go to the Payments window to pay a vendor. Print a check in payment of the vendor invoice. Analyze vendor payments. Make two backups: one blank, formatted disk for the Chapter 2 backup; one blank, formatted disk for the Exercise 2-2 backup.

4. ©The McGraw-Hill Companies, Inc. 4 of 31 Web Objectives, p. 53 Use your Internet browser to go to the book’s website at www.mhhe.com/yacht2004 www.mhhe.com/yacht200 Complete the Internet activity for Accounting Students. Use a word processing program to write a summary about the website(s) that you visited.

5. ©The McGraw-Hill Companies, Inc. 5 of 31 Peachtree Tips Peachtree Tips In Chapter 1 on pp. 49-50, you backed up (saved) Exercise 1-2. In order to begin where you left off, you restore your data from Exercise 1-2. Restoring will allow you to start where you left off at the end of Chapter 1. The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements will reflect within chapter activities and end-of-chapter exercises.

6. ©The McGraw-Hill Companies, Inc. 6 of 31 Peachtree Tips Change global settings to show general ledger accounts, p. 56, (Options; Global). If the boxes are checked, then general ledger accounts (GL Account column) are hidden on the Tasks screens. Make sure the boxes are unchecked so that the general ledger accounts will show on the Tasks screens.

7. ©The McGraw-Hill Companies, Inc. 7 of 31 Peachtree Tips Peachtree defaults to hiding the general ledger accounts. This is called Accounting Behind the Screens. (p. 56) The screen illustrations in the book show the general ledger accounts. Once you set global options for one company, they are in effect for all Peachtree companies.

8. ©The McGraw-Hill Companies, Inc. 8 of 31 Backing Up Chapter 2 In Chapter 2, use two blank formatted disks for backups: one blank, formatted disk to make the Chapter 2.ptb backup, p. 80; use another blank, formatted disk to make the Exercise 2-2.ptb backup on pp. 86- 87. Since work in Chapters 1-7 is cumulative, you should have data backed up through Exercise 2-2 (disk 5 of 14), before you reformat the Chapter 1 disk (disk 2 of 14). Refer to the chart shown on page 2 in the textbook. Disks Backup Name KBPgNos. 4 of 14 a:\Chapter 2.ptb 1,230 KB 80 5 of 14 a:\Exercise 2-2.ptb 1,228 KB 86-87

9. ©The McGraw-Hill Companies, Inc. 9 of 31 Chapter 2 Topics 1. Software & web objectives, p. 53 2. Getting Started, p. 54 3. Restoring data from Chapter 1, pp. 54-55 4. Accounts payable tasks, p. 55 a. The purchase order window, p. 55 b. Changing global settings for Accounting Behind the Screens, pp. 56-61 c. Printing purchase orders, pp. 61-62 d. The Purchases/Receive Inventory window, pp. 62-64 e. Adding a new vendor, pp. 64-67 f. Entering a vendor invoice, pp. 67-69 g. Posting a purchase transaction, p. 69

10. ©The McGraw-Hill Companies, Inc. 10 of 31 Chapter 2 Topics (concluded) 5. Payments to vendors, pp. 70-72 6. Printing checks, pp. 72-75 7. Displaying the vendor ledgers, pp. 75-77 8. Vendor credit memos, pp. 77-79 9. Backing Up Chapter 2 data, p. 80 10. Internet activity, p. 80 11. Summary & Review, p. 81 a. Going to the net, p. 81 b.Multiple choice questions, pp. 82-84 c. Exercise 2-1, pp. 84-86 d. Exercise 2-2, pp. 86-87 e. Chapter 2 index, p. 88

11. ©The McGraw-Hill Companies, Inc. 11 of 31 Changing Global Setting for Accounting Behind the Screens, pp. 56 From the menu bar, click on Options, Global. The boxes in the section Hide General Ledger Accounts must be unchecked, p. 56.

12. ©The McGraw-Hill Companies, Inc. 12 of 31 Changing Global Setting for Accounting Behind the Screens (concluded), pp. 56 In the Other Options area, two boxes are checked. Click on the General tab. Make sure the Line Item Entry Display and Smart Data Entry match what is shown. Click.

13. ©The McGraw-Hill Companies, Inc. 13 of 31 Purchase Orders window, p. 57 From the menu bar, click on Tasks, then select Purchase Orders.

14. ©The McGraw-Hill Companies, Inc. 14 of 31 Vendor drop-down list, p. 58 Select AARON-01, Aaron and Son Contractors, as the vendor. (This is step 5 on page 58.) Continue with steps 7 and 8 on pages 58 and 59. Read the Comment box on p. 59. If necessary, make changes to the Options; Global Decimal Entry selection.

15. ©The McGraw-Hill Companies, Inc. 15 of 31 Completed Purchase Order, p. 60 After completing steps 9 - 14 on pages 59 and 60, the completed Purchase Orders window is shown.

16. ©The McGraw-Hill Companies, Inc. 16 of 31 Accounting Behind the Screens, Purchase Order Journal, p. 61 From the completed Purchase Orders window, click on the Journal icon.

17. ©The McGraw-Hill Companies, Inc. 17 of 31 Printing Purchase Orders, pp. 61-62 After completing steps 1 and 2 on p. 61, the purchase order prints. This purchase order is shown on p. 62.

18. ©The McGraw-Hill Companies, Inc. 18 of 31 Purchases/Receive Inventory, p. 63 From the menu bar, select Tasks, then Purchases/Receive Inventory.

19. ©The McGraw-Hill Companies, Inc. 19 of 31 Maintain Vendors, p. 64 The Maintain Vendors window appears when you press the plus key in the Vendor ID field.

20. ©The McGraw-Hill Companies, Inc. 20 of 31 Completed Purchases/Receive Inventory window, p. 68 After completing the steps on pages 65-68, the completed Purchases/Receive Inventory screen is shown.

21. ©The McGraw-Hill Companies, Inc. 21 of 31 Payments window, p. 70 From the menu bar, select Tasks, then Payments.

22. ©The McGraw-Hill Companies, Inc. 22 of 31 Completed Payments window, p. 71 The completed Payments window is shown on page 71.

23. ©The McGraw-Hill Companies, Inc. 23 of 31 Select a Report, p. 73 From the menu bar, select Reports, then Accounts Payable. Scroll down the Report list. Double-click on the Disbursement Checks folder to open it. Then, click on AP Preprint 1 Stub.

24. ©The McGraw-Hill Companies, Inc. 24 of 31 Vendor Ledgers, p. 76 From the menu bar, select Reports, Accounts Payable, highlight Vendor Ledgers, then select

25. Chapter 2 Glossary of Terms

26. ©The McGraw-Hill Companies, Inc. 26 of 31 Purchase discount, p. 53 Cash discounts from vendors in return for early payment of an invoice, for example, 2% 10 days, net 30.

27. ©The McGraw-Hill Companies, Inc. 27 of 31 Purchase orders, p. 55 Purchase orders are used to place an order from a vendor.

28. ©The McGraw-Hill Companies, Inc. 28 of 31 Coding system, p. 64 A combination of letters and numbers that are used to identify customers and vendors. The coding system is case sensitive, for example AA-01 is not the same as aa-01.

29. ©The McGraw-Hill Companies, Inc. 29 of 31 Case sensitive, p. 65 Refers to the use of lowercase and uppercase letters. When coding a customer or vendor number, you must use either a capital or lowercase letter. For example, AA-01 is not the same as aa-01.

30. ©The McGraw-Hill Companies, Inc. 30 of 31 Chapter 2, Internet Activity, p. 80 1. Go to the book’s website at www.mhhe.com/yacht2004 www.mhhe.com/yacht200 2. In the Student Edition list, link to Internet Activities. 3. Link to WEB EXERCISES PART 1. 4. Scroll down the screen to ACCOUNTING STUDENTS – Chapter 2. Complete steps 1-3. 5. Using a word processing program, write a summary about the sites you selected. Include the website address in your summary (maximum length, 75 words; minimum length, 50 words.

31. ©The McGraw-Hill Companies, Inc. 31 of 31 Going to the Net, p. 81 Access information about domain name statistics at www.zooknic.com/Domains/index.htmlwww.zooknic.com/Domains/index.html. www.zooknic.com/Domains/index.html 1.gTLD is an abbreviation for what word(s)? 2.What top five metropolitan regions account for most of the domain names? 3.List the extensions that are used with domain names.