2. Chapter 11: Completing Quarterly Activities and Closing the Fiscal Year Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Completing Quarterly Activities and Closing the Fiscal Year Chapters 9, 10 and 11 work together. In Chapter 11, you continue recording financial information for Mark Foltz Designer. You complete the Computer Accounting Cycle for November and December. Mr. Foltz’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, print financial statements, and close the fiscal year. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 2 of 17

4. 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, and Statement of Retained Earnings. 9.Close the fiscal year. 10.Interpret accounting information. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 3 of 17

5. Peachtree Tips Peachtree Tips You must complete Chapters 9 and 10 before starting Chapter 11. To check that you have completed Chapter 10, display Mark Foltz Designer’s general ledger trial balance. Compare it to the one shown on page 347. This is the trial balance at the end of October. If any of the account balances are incorrect on the general ledger trial balance, follow the steps for Editing Journal Entries on page 346. Then, reprint the trial balance. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 4 of 17

6. Peachtree Tips (concluded) Peachtree Tips (concluded) If you do not get the correct year-to-date amounts on the Income Statement (pages 373 and 390) and Statement of Cash Flow (page 392), you probably set your chart of accounts beginning balances in Chapter 9 incorrectly (refer to steps 1-8, pages 302-307, Entering Chart of Accounts Beginning Balances). The Select Period window, From 9/1/12 through 9/30/12, is shown on page 304 below step 3. To check that your beginning balances were set up correctly, display the September 30, 2012 balance sheet (refer to pages 307-308). Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 5 of 17

7. Backing Up Chapter 11 Peachtree Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Chapter 11 November.ptb1,010 KB374-375 Chapter 11 December UTB.ptb1,011 KB382-383 Chapter 11 December.ptb1,017 KB393-394 Chapter 11_Adjusted Trial Balance and Financial Statements.xlsx 30 KB393-394 Chapter 11_Adjusted Trial Balance.pdf38 KB394 Chapter 11_December Balance Sheet.pdf5 KB394 Chapter 11_December Income Statement.pdf6 KB394 Chapter 11_December Statement of Cash Flow.pdf5 KB394. The chart below shows the size of the backups made in Chapter 11. Refer to textbook pp. 277-278 for sizes of backups (.ptb), Excel files (.xlsx), and Adobe (.pdf) files in Part 2-Chapters 9, 10, 11 and Project 1. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 6 of 17

8. Backing Up Chapter 11 (continued) Peachtree Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Chapter 11_December Statement of Retained Earnings.pdf4 KB394 Chapter 11 EOY.ptb1,026 KB400-401 Chapter 11_Postclosing Trial Balance.xlsx12 KB401 Chapter 11_Postclosing Trial Balance.pdf51 KB401 Asset depreciation.xlsx (Going to the Net)14 KB402 Exercise 11-1.ptb973 KB406 Exercise 11-2_Unadjusted Trial Balance.ptb1,008 KB408 Exercise 11-2 Financial Statements.ptb1,011 KB409 Exercise 11-2_Adjusted Trial Balance and Financial Statements.xlsx 29 KB409 Exercise 11-2_Adjusted Trial Balance.pdf53 KB409 Exercise 11-2_Balance Sheet.pdf5 KB409 Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 7 of 17

9. Backing Up Chapter 11 (concluded) Peachtree Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPages Exercise 11-2_Income Statement.pdf6 KB409 Exercise 11-2_Statement of Cash Flow.pdf5 KB409 Exercise 11-2_Statement of Retained Earnings.pdf4 KB409 Exercise 11-2 End of Year.ptb1,020 KB409 Exercise 11-2_Postclosing Trial Balance.xlsx12 KB409 Exercise 11-2_Postclosing Trial Balance.pdf50 KB410 Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 8 of 17

10. Change accounting periods, pp. 364-366 Click on Tasks, then System. From the System menu, select Change Accounting Period. Select 11-Nov 01, 2012 to Nov 30, 2012. The Change Accounting Period window is shown on p. 365. Click on. Click on at the window prompt. The toolbar shows. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 9 of 17

11. Data File Statistics, pp. 375-377 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 first and last name Designer, your shortened company name will differ. The Data File Statistics window is shown on page 376. Click OK to close the Data File Statistics window. The shortened company name that Peachtree assigns is made from the first three letters in the first word, the first three letters in the second word, and two letters from the third word. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 10 of 17

12. Glossary of Terms Chapter 11 Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 11 of 17

13. 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. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 12 of 17

14. Unearned revenue, p. 386 Unearned revenue is a liability account used to report advance collections from customers or clients. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 13 of 17

15. Going to the Net, p. 402 Access the asset depreciation schedule at http://office.microsoft.com/en-us/templates/asset-depreciation- schedule-TC001046099.aspxhttp://office.microsoft.com/en-us/templates/asset-depreciation- schedule-TC001046099.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. Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 14 of 17

16. Analysis Questions, p. 410 1. When using Peachtree, why is it important to change accounting periods? (Hint: Do a search on Peachtree’s Help window for Change Accounting Period.) 2. Does the balance in retained earnings differ on the adjusted trial balance and the postclosing trial balance? 3. How does the postclosing trial balance differ from the adjusted trial balance? Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 15 of 17

17. Assessment Rubric, p. 410 TaskDate Navigation Center Task Window Ending GL Balance December bank reconciliation Mark Foltz Designer Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 16 of 17

18. Online Learning Center  Go online to www.mhhe.com/yacht2012 for additional resources. Link to Student Edition, select Chapter 11.www.mhhe.com/yacht2012 o Interactive Testing o Glossary of Terms o Feature Quizzes o PowerPoints o Assessment Rubric o Going to the Net o QA Templates Copyright ©2013 by The McGraw-Hill Companies, Inc. All rights reserved. 17 of 17