Chapter 5: General Ledger & Inventory

1. Chapter 5:General Ledger & Inventory

2. General Ledger and Inventory • In Chapter 5, you learn how to use the General Ledger chart of accounts. • Peachtree comes with over 75 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. Software Objectives, p. 153 • Restore data from Exercise 4-2. (This back up was made on p. 150.) • 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: backup Chapter 5 data, and backup Exercise 5-2 ©The McGraw-Hill Companies, Inc.

4. Web Objectives, p. 153 • Use your Internet browser to go to the book’s web site at www.mhhe.com/yacht2005 • Complete the Internet activity for Ask Jeeves. • Complete the steps shown for this activity. ©The McGraw-Hill Companies, Inc.

5. Peachtree Tip • Peachtree uses a perpetual inventory system. See page 172 for a review of how Peachtree journalizes the purchase and sale of inventory items. ©The McGraw-Hill Companies, Inc.

6. Backing Up Chapter 5 In Chapter 5, you make two backups. The Chapter 5.ptb backup is made on page 174 and the Exercise 5-2.ptb backup is made on page 179. Refer to the chart shown on page 2 in the textbook ©The McGraw-Hill Companies, Inc.

7. Chapter 5 Topics • Software & web objectives, p. 153 • Chart of Accounts, pp. 154-155 • Getting started, pp. 156-159 • General Journal, pp. 160-163 • Setting up an inventory item, pp. 163-164 a. Inventory types, pp. 164-167 b. Inventory default accounts, p. 167-168 • Inventory and purchases, pp. 168-169 • Inventory and sales, pp. 169-172 • Inventory adjustments, pp. 173-174 ©The McGraw-Hill Companies, Inc.

8. Chapter 5 Topics (concluded) • Backing up Chapter 5 data, p. 174 • Internet Activity, p. 174 • Summary and review, p. 175 a. Going to the Net, p. 175 b. Multiple choice questions, pp. 176-178 c. Exercise 5-1, p. 179 d. Exercise 5-2, p. 179 e. Chapter 5 index, p. 180 ©The McGraw-Hill Companies, Inc.

9. Peachtree Help window, p. 155 • 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. ©The McGraw-Hill Companies, Inc.

10. Maintain Chart of Accounts window, p. 157 • Click on Maintain, then Chart of Accounts. In the Account ID box, type 10500. In the Description box, type Money-Market Fund. Make sure Cash is selected as the Account Type. This window is shown on p. 157. ©The McGraw-Hill Companies, Inc.

11. Completed Maintain Chart of Accounts window, p. 158-159 • Select the Budgets tab. Complete the steps 1 - 3 on pages 158-159. This window is shown on p. 159. ©The McGraw-Hill Companies, Inc.

12. General Journal Entry, p. 160-161 • Complete steps 1- 9 on pages 160-161 to see this window. • Select Save to post to the General Ledger. ©The McGraw-Hill Companies, Inc.

13. General Ledger Trial Balance, p. 162 • Click on Reports, then General Ledger. In the Report List, double-click on General Ledger Trial Balance. ©The McGraw-Hill Companies, Inc.

14. Completed Maintain Inventory Items, pp. 163-167 • Click on Maintain, then Inventory Items. Complete the steps shown on pages 163-167. The completed Maintain Inventory Items window appears on p. 167. ©The McGraw-Hill Companies, Inc.

15. Completed Purchases/Receive Inventory window, pp. 168-169 • Click on Tasks, then Purchases/Receive Inventory. Complete steps 2 – 7 on pages 168-169. This window is shown on p. 169. • Post this purchase. Press <Esc> to return to the menu bar. ©The McGraw-Hill Companies, Inc.

16. Completed Sales/Invoicing window, pp. 170-171 • Click on Tasks, then Sales/Invoicing. Complete steps 1 - 8 on pages 170-171. The window is shown on page 171. • Post the invoice. Close the window to return to the menu bar. ©The McGraw-Hill Companies, Inc.

17. Completed Inventory Adjustments window, p. 173 • Click on Tasks, then Inventory Adjustments. Complete steps 2 – 4 on page 173. • Post this adjustment, then close the window to return to the menu bar. ©The McGraw-Hill Companies, Inc.

18. Backing Up Chapter 5 Data, p. 174 • Complete steps 1-6 on p. 174. • The suggested file name is Chapter 5. ©The McGraw-Hill Companies, Inc.

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

20. Perpetual inventory, p. 153 • 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. Chart of accounts, p. 154 • A list of all the accounts used by a company, showing the identifying number assigned to each account • Peachtree has over 75 sample charts of accounts. ©The McGraw-Hill Companies, Inc.

22. Chapter 5, Internet Activity, p. 174 ©The McGraw-Hill Companies, Inc.

23. Going to the Net, p. 175 • Access the AccountantsWorld.com web site at www.accountantsworld.com/ • Link to About Us. Read the article “Why Does Accountantsworld Exist?. • What does the article say the accounting firm of tomorrow will be like? • How will accountantsworld.com serve the needs of the accounting community? ©The McGraw-Hill Companies, Inc.