5 : 5 Name Date Class Transactions that Affect Revenue, Expenses, and Withdrawals CHAPTER Study Guide Section As: ment Section 1 Read Section 1 on pages 104-109 and complete the following exercises on page 110. Cl Reinforce the Main idea Dothe math [Problem 5-1. Applying the Rules of Debit and Credit Section 2 Read Section 2 on pages 111-115 and complete the following exercises on page 116, 1D Reinforce the Main Ides (Do the Math (Problem 5-2 Identifying Accounts Affected by Transactions Chapter Assessment Summary Review the Chapter 5 Summary on pages 118-119 in your textbook. Okey Concepts Review and Complete the following questions and exercises on page 120 in your texthook. Activities (Check Your Understanding D_ Apply Key Terms Computerized Read the Computerized Accounting information on page 121 in your textbook. Accounting [) Making the Transition from @ Manual to @ Computerized System Peachtree Q&A 1D QuickBooks Qea Problems Complete the following EndLof-Chapter Problems for Chapter $ in your textbook Problem 5-3. Identifying Increases and Decreases in Accounts Problem 5-4 Using T Accounts to Analyze Transactions Problem 5-5. Analyzing Transactions into Debit and Credit Parts Problem 5-6 Analyzing Transactions into Debit and Credit Parts Problem 5-7. Analyzing Transactions Problem 5-8 Completing the Accounting Equation ooooo0 Challenge Problem Winning Complete the exercises om page 127 in your textbook. ‘Competitive Events Real-World Complete the following applications on pages 128-129 in your textbook. Applications and) Ciitical Thinking Skills Beyond Numbers Connections (] Case Study 1 Intemational accounting 1 AMatter of Ethics (Making It Personal (Communicating Accounting Chapter 5 m 41Name Date Class Working Papers for Section Problems é Problem 5-1 Applying the Rules of Debit and Credit (textbook p. 110) eee Gass Cash in Bank Asset Debit Credit Debit 5 Problem §-2 Identifying Accounts Se 7 Affected by Transactions (textbook p. 116) as pepe 42 m Chapter § Capit ty Te Mim Cpanel mer.epee sa Caan. Name Date Class Working Papers for End-of-Chapter Problems Problem 5-3 Identifying Increases and Decreases in Accounts (textbook p. 122) La. Analyze: Problem 5-4 Using T Accounts to Analyze Transactions (textbook p. 122) L Analyze: Chapter 5 mi 43Name 44 Mi Chapter 5 en Te Mba Cores As eee.Name Date Class Problem 5-5 (concluded) Analyze: Problem 5-6 Analyzing Transactions into Debit and Credit Parts (extbook p. 124) (1), 2). 8) Chapter 5 M45Name Date Class ‘Problem 5-6. (concluded) Debit Account Name Balances Ss Credit Balances Problem 5-7 Analyzing Transactions (textbook p. 125) (1), @)@) 46 M Chapter 5 Canin © Tenses oro A gene‘tnt Taco Corea. A as sew Problem §-7 (continu Date Chapter 5 m 47‘Name Date Class “Problem §-7 (concluded) : @ ‘Account Name Debit Balances Credit Balances 8 § Totals $ $ ( Analyze: “Problem 5-8 Completing the Accounting Equation (exthook p. 126) Owner's: Assets = Liabilities + Equity ~ Withdrawals + Revenue - Expenses 1. $64,400 $ 8,200 $56,300 $ 500 $10,000 $9,600, 2. 22,150 525 18,800 1,200 12,100 2 3. 17,500 78 21,650 4,115 3,250 & 4. 49,450 47,840 1,500 20,300 17,610 i 5. 21,900 1,150 20,005 950 16,570 i 6. 72,640 2,790 10,750 67,908 39,749 é 2. 1,988 41,194 6,196 52,210 42,597 i 8 3,840 fol 7acee et aeecteseecteed atee0, 164: 21,637 (Expenses plus withdrawals equal $27,749.) 9. 64,070 49,102 4,875 53,166 ( (Total owner's equity after adding revenue and subtracting expenses and withdrawals is $50,643.) Analyze: 48 m@ Chapter 5Name Date Class Peachtree® Guide Step-by-Step Instructions What You'll Learn Using Peachtree When you have completed this chapter, you will be able to use Peachtree to: 1, Change the company name. 2, Set the system date. 3. Print a Chart of Accounts report. 4. Enter a new general ledger account. 5. Record a beginning balance for a general ledger account. 6. Explain the purpose of the account type settings. =) io ] a = Ei Bs ® ° i) = ms D Problem §-3 Identifying Increases and Decreases in Accounts _ Follow the instructions provided below to print a Chart of Accounts report for Wilderness Rentals, Although the instructions in your textbook direct you to analyae the transactions, you Will not use Peace to complete this analysis. ea Me In the next chapter, hovvever, you will use the Wilderness Rentals general led- Laut AULSSULNUE get accounts to enter transactions, ‘Are there any differences betireen a manual system INSTRUCTIONS and computerized system Begin a Session hen You Setup a chart of accounts? Step 1 Open the Glencoe Accounting: Electronic Learning Center soft- ware and click on the Peachtree Complete® Accounting Software and Spreadsheet Applications icon. you must ener a account Step 2 Log onto the system by typing your user name and password. | Nimber anda tte for each Step 3 From the scrolling list of chapter problems, select the problem — | genera edger acount just A When you set up a chart ‘of accounts using Peachtree, set: Wilderness Rentals (Prob. ke you would in a manual Step 4 Rename the company by adding your inltials, e.g, Wilderness | system. Using @ computerized (Prob. 5-3: XXX). system such as Peace, + Choose Company Information from the Maintain menv. |ytwtaat praseise : + Review the information in the Maintain Company an account ype (eg. ase, : Information window. (See Figure 5-34.) lablty, equi, income, 2 + Click in the Company Name field. expense, ec). 2 * Change the company name by adding your initials as shown 2 in the figure. i § dik OKto é record any changes 0 = tecomeny baba 8 infomation ee on 3 eon company : metnmes an Enon Decoeee [wane recreate] one Figure 5-38 Maintain Company Information Window Chapter 5 m a9C = FI 0 ri Q 4 = eS o S Ci a Name Date Class + Click [§] to record the new company name. @ S Step 5 Set the system date to January 31, 2010. x © You must set the ‘+ Click the Options menu and choose Change System Date. accounting date each time * Type 1/31/10. you begin working with * Click OK to record the new system date. Peachtree. Prepare a Report and Proof Your Work Step 6 Print a Chart of Accounts report. To print a Chart of Accounts report: * Choose General Ledger from the Reports menu to display the Select a Report window. (See Figure 5-38.) i y cl (ap: You can double-click a report ttle to go directly to that report, A skipping the Options window. jC aed ete icici ee Pits the Display selected selected tept teporton the screen Closes this window Someoe Corny here ae fone snes choose the Jf | FsttSaenen er aes | ABEL oveton, Z i : report for bis st | ion St snes i : see || tom Gi vennerisn | | fq Teese oereeRepote ) | DP coeey tit 2) vavese a = ae E Figure 5-3B Select a Report Window with the General Ledger Reports * Select Chart of Accounts in the report list. * Click ff and then click OK to display the Chart of Accounts report. * Review the report as shown in Figure §-3C and then click to print the report. + Click [BG] to close the report window. Step 7 Review the information shown on Figure 5-3C. As you can see, the Chart of Accounts report shows the general led- get account numbers and account titles for Wilderness Rentals. The report also includes two other columns—Active? and Account Type. 50 @ Chapter 5 ryt © Te Mam Compe, Nis een,uo by Te Ms Camps se. Name Date Glass Indicates if an accounts Company name, eed ‘WieasDos #35059 7 report ttle, and cou nee ane a roe hate he nen descigion (orname) ‘Account type Account 1 (or number) E Figure 5-3C Chart of Accounts Report ‘The Active? column includes information that identifies whether or not an account Is active. You can post transactions to an active account, but not to an inactive account. The account type identi- fies the account category (e.g., Cash, Accounts Receivable, Fixed Assets, Equity—Retained Earnings, Equity—gets closed, Income, and Expenses). Peachtree uses this information to group accounts for financial reports and to determine which accounts are permanent and which are temporary when it closes an accounting period. Analyze Your Work Step 8 Complete the Analyze activity manually. End the Session When you finish the problem or if you must stop at the end of a class period, follow the instructions given here to end the session. Step 9 Click the Close Problem button in the Glencoe Smart Guide window and select a save option as directed by your teacher. Click OK. Continue from a Previous Session + Ifyou were previously directed to save your work on the network, select the problem from the scrolling menu and click OK. The system will retrieve your files from your last session. ‘+ If you were previously directed to save your work on a floppy disk, insert the floppy, select the corresponding problem from the scrolling menu and click OK. The system will retrieve your files from the floppy disk ‘What account types are used by the Peachtree software? On a separate sheet of paper, list these account types. ‘ AIP? search the Help Index to learn about the account types. Chapter 5 m 51 o) i “ ii = es s o io 3) & is o.‘Name Date Class Problem 5-4 Using T Accounts to Analyze Transactions ( Follow the instructions provided below to print a Chart of Accounts i: report for Hot Suds Car Wash. You will use the general ledger accounts DO YOU HAVE to enter transactions in the next chapter. A QUESTION INSTRUCTIONS. @. what is the purpose of : : the “Fiter Criteria includes: Begin a Session * section atthe top of the Step 1 Open the Glencoe Accounting: Electronic Learning Center soft- | Chart of Accounts report? ware and click on the Peachtree Complete® Accounting | most every report you Software and Spreadsheet Applications icon. print with Peachtree includes Step 2 Log onto the system by typing your user name and password. | the report criteria at the top Step 3 From the scrolling list of chapter problems, select the problem | ofthe report. This informa- Cy = E oO ‘i Gi iM = = Py GI ] 3 ‘set: Hot Suds Car Wash (Prob. 5-4). tion identifies which filters Step 4 Rename the company by adding your initials, e.g., Hot Suds (or options) are set for the (Prob. 5-4: XXX). See ane wee ce Step 5 Set the system date t 1, 201 could choose to print a step le system date to January 31, 2010, of Accounts with only the Prepare a Report and P-oof Your Work general ledger accounts that Step 6 Print a Chart of Accounts report, hhave a balance. Or you could pe ee ere eaeee cence choose to print only the asset ie accounts. The information at SIRS eree reer Seer rere See errr eee eee eer eet the top of the report reflects TIP: ae any special options you may NE You can use the General Ledger Navigation Aid at the have set. On some reports, EY bottom of the Peachtree main window to access the the ftercteria may run past General Ledger Reports including the Chart of Accounts. the edge of the page. The content of the report is not affected when this occurs. | Step 7 Review the information shown on the report. : Analyze Your Work ‘Notes Step 8 Complete the Analyze activity manually. U Refer to the nstruc- End the Session tions in Problem 5-3 if 7 a - 7 you need help installing a Step 9 Click the Close Problem button in the Glencoe Smart Guide Propim ser, changing the window and select a save option as directed by your teacher, Erin name, oF setng Click OK. the system date. Problem §-5 Analyzing Transactions into Debit and Credit Parts Follow the instructions provided below to add new general ledger accounts for Kits & Pups Grooming. You will also learn how to enter the beginning balance for an account. INSTRUCTIONS, Begin a Session ‘Step 1 Open the Glencoe Accounting: Electronic Learning Center soft- ware and click on the Peachtree Complete® Accounting Software and Spreadsheet Applications icon. Step 2 Log onto the system by typing your user name and password. Step 3 From the scrolling list of chapter problems, select the problem set: Kits & Pups Grooming (Prob. 5-5) Step 4 Rename the company and set the system date to January 31, 2010. ‘52 Mi Chapter 5 i i a é 3z 3 7 i 2 a 5 Name Date Work the Accounting Problem Step 5 Add the Advertising Expense general ledger account. To ada a new account: + Choose Chart of Accounts from the Maintain menu. those accounts already recorded for the company. + Type 501 in the Account ID field and press Tab to move to the next field. AS you type an account number, Peachtree displays a list the general ledger accounts and highlights the first account that matches what you have entered. This feature is helpful you are entering an account number for an account you wal to change. Note: This feature may be disabled if your teach changed the Peachtree preferences, * Type Advertising Expense in the Description field. Class DO YOU HAVE 7) A QUESTION . When you adda new account or entero rnsoc- in the Maintain Chart of Accounts window to view _|on using the Peachtree software is it necessory to [manually save your work? A Some applications, such as a word processor or a Of | spreadsheet program, require that you choose to save your if | work by choosing the Save ant | option from the Fife menu er | or by clicking he Save but- ton ona toolbar. Peachtree does not require you to ‘manually choose to save Zz your work. automatically (IP: Bress Tab to move to the net field in a data entry win: | | Broe ssc yo rast jow and press Shift + Tab to move to the previous field. | | Gioiuauet Nor elt tr ee eae ea eit Peachtree to avoid losing any daa, * Click the Account ‘Type drop-down list and select Expenses, since this account is an expense. + Review the information you just entered, (See Figure 5-5A.) Closes window. Account 1D 2 aa Account : se Description a Account ype ff [escstiny [—— baie [ear Peachtvee pays account adivity here ‘Saves new account or changes to an esting account Deletes existing xcount ‘Alows you to ‘mark an account as “inactive” Beginning Balances button Displays lists of accounts Figure 5-58 Maintain Chart of Accounts Window (Advertising Expense) You do not have to complete any of the other fields shown in the Maintain Chart of Accounts window, The account activity appears, in this window as a company uses the software to record its trans- actions. You can also enter budget amounts, as you will learn in a later chapter. + Click J] or press AltsS to record the new account, ion to en © Click [2] to clear the data entry fields in prepare a new account. nter Chapter 5 ml 53 ot i i cl = = a . o o = a G(if Name i Date Class 3 0 Step 6 Add the remaining expense accounts shown below for Kits & Pups © Grooming. ( " ‘Account No. Description Account Type Fo 505 Equipment Repair Expense Expenses, eS 510 Maintenance Expense Expenses 3 520 Rent Expense Expenses HY 530 Utilities Expense Expenses iy Note: ‘To edit an account description or account type, type the account number and then change the account information, Click FR] to save the changes. If you type the wrong "if you do not click account number, type or select the account. Then click the New button, Peachtree to remove it from the chart of accounts. does not clear the descrip- tion field for the next new Step 7 Type the beginning balances for Cash in Bank ($15,000) and account. However, you can Abe Shultz, Capital ($15,000) type over the account num- at descripti To enter beginning balances: ber and account description to enter a new account. + Click the Beginning Balances button in the Maintain Chart of Accounts window. * Choose From 1/1/10 through 1/31/10 from the Select Period window and click OK. + Type 15000 in the Cash in Bank field. + Press Tab to the Abe Shultz, Capital field and type 15000. am Ml) Unless your teacher changed the default Peachtree settings, the \ software will convert any amount you type as a round number ‘Ej into dollars and cents. For example, Peachtree will automatically ‘ format the amount 15000 as $15,000.00. if the amount you type includes cents, you must type a de correct number of cents. al point followed by the + Review the entry. (ee Figure 5-SB.) Records beganing babnces [on tet PP ee : aes lia Cash account beginning Accounting f} accom | sstdonicin | scone | et es balance period for ae begining — Gopitl account : E ©) besiaing Describes si Slnneeeenio begin the concept aon arate abcess orem Tae tot diet [Renesas pmeemaelt counting [lerenecisamecdtccreiiges” Wme-teewe €0 a quien [eae Se, Figure 5-SB Chart of Accounts Beginning Balances Window , ‘+ Click [7R{] to record the beginning balances. 54 i Chapter 5at. Ag em yg © Te Mee Name Date Class Step 8 Click Prepare a Report and Proof Your Work Step 9 Print a Chart of Accounts report. Step 10 Review the information shown on the report Step 11. If you notice an error, use the Chart of Accounts option in the Maintain menu to edit or delete a general ledger account. to close the Maintain Chart of Accounts window. bs id ry ial ce o es o o o o a 0. Analyze Your Work Step 12 Complete the Analyze activity manually. End the Session Step 13 Click the Close Problem button in the Glencoe Smart Guide window and select a save option as directed by your teacher. Click OK. Identify at least one income, one expense, and one equity account, Peac Problem 5-6 Analyzing Transactions into Debit and Credit Parts Follow the instructions provided below to add new general ledger accounts for Outback Guide Service. You will enter transactions in the next chapter. INSTRUCTIONS Begin a Session Step 1 Open the Glencoe Accounting: Electronic Learning Center software and click on the Peachtree Complete® Accounting Software and Spreadsheet Applications icon. Step 2 Log onto the system by typing your user name and password. Step 3 From the scrolling list of chapter problems, select the problem set: Outback Guide Service (Prob. 5-6). Step 4 Rename the company and set the system date to January 31, 2010. Work the Accounting Problem Step 5 Add the capital, income, and expense accounts. Account No. Description Account Type 301 Juanita Ortega, Capital __Equity—Retained Earnings 302, Juanita Ortega, Withdrawals Equity—gets closed 401 Guide Service Revenue Income 505 Maintenance Expense Expenses S15 Rent Expense Expenses 525 Utilities Expense Expenses ade Step 6 Click {Jl to close the Maintain Chart of Accounts window. Notes Prepare a Report and Proof Your Work ee ay Step 7 Print a Chart of Accounts report. Capital account and gets Step 8 Proof your work and make any corrections, as needed, closed at the end of each Analyze Your Work accounting period. Step 9 Complete the Analyze activity manually. End the Session Step 10 Click the Close Problem button in the Glencoe Smart Guide window and select a save option as directed by your teacher Chapter 5 ml 55C = = cc) o C ts = = o q Cj a Name Date Class “Problem 5-7 Analyzing Transactions — Follow the instructions provided below to add new general ledger accounts for Showbiz Video, You will enter transactions into the accounts in the next chapter. INSTRUCTIONS Begin a Session Step 1 Open the Glencoe Accounting: Electronic Learning Center software and click on the Peachtree Complete® Accounting Software and Spreadsheet Applications icon. Step 2 Log onto the system by typing your user name and password. Step 3 From the scrolling list of chapter problems, select the problem set: Showbiz Video (Prob. 8-7). Step 4 Rename the company and set the system date to January 31, 2010. Work the Accounting Problem Step 5 Review all of the accounts listed in your textbook for Showbiz Video. Step 6 Determine the account type for each account. Step 7 Add all of the new accounts. ZQETIP: vou must abbreviate some account names t itn the / Description field. For example, use A/R instead of Accounts Receivable. Prepare a Report and Proof Your Work Step 8 Print a Chart of Accounts report. Step 9 Proof your work and make any corrections, as needed. Analyze Your Work Step 10 Complete the Analyze activity manually. End the Session Step 11 Click the Close Problem button in the Glencoe Smart Guide window and select a save option as directed by your teacher. Click OK. Peachtree allows you to enter a budget amount for each ‘general ledger account. On a separate sheet of paper, describe why a company would record budget figures. 56 @ Chapter 5 \©ty Teel Connie, i ese. coriappt Te eu Cape en Name Date Class QuickBooks® Guide Step-by-Step Instructions What You'll Learn Using QuickBooks When you have completed this chapter, you will be able to use QuickBooks to: 2. Restore a QuickBooks Backup file. 2, Print a Chart of Accounts report. 3. Enter a new general ledger account. 4, Record a beginning balance for a general ledger account. 5. Explain the purpose of the account type setting, 6. Back up a QuickBooks file. ‘Problem 5-5 Analyzing Transactions into Debit and Credit Parts Follow the instructions provided below to add new general ledger accounts for Kits & Pups Grooming. You will also learn how to enter the beginning balance for an account. INSTRUCTIONS Begin a Session Step 1 Launch the QuickBooks® Pro 2005 software. Step 2 Restore the Problem 5-5.QBB file by following the steps below. + From the File menu, select Restore. You can also click on the Restore a backup file button in the No Company Open win- dow if you do not have another company file open. The Restore ‘Company Backup window will be displayed, (See Figure 5-5A.) Note that the Get Company Backus From: =< backup fle hasa.088 © sf you are restoring froma 3.5reh dskor ther eno beng Problem 55.986 cB [iene] © Online: To restore en online backup, cick Restore, retrieve the fie using the orine backup servee, then open the fle n Quebooks. Restoce Company Baia To: ~~ Ree wae restored fle {GSS Select the cation and nae to restore your company tac fas a QBW eension Problem §-5.Q60 [criquickBooks|, Restore _}(__ Caneel Figure 5-5 The Restore Company Backup window Chapter $m 57 cc) 5 4 = tr ° 3 = a ia} = cs i)Name Date Class + In the Get Company Backup From section, click (gewe_} + From the Look in: drop-down list, select the drive where the WLI HAL] file you are restoring Is located. 2 + Choose the fle name of the problem you want to open. it |: Are there any ferences b between a manual system will be displayed in the Filename field ; and a computerized system + Click (“eves when you Se up a chart of + In the Restore Company Backup To section, accept the file | accounts? name already selected for you by QuickBooks, and A. When you se up a chart click * From the Save in: drop-down list, choose the location where ete wade ae eu you want to restore the file water an : general ledger account just as + Click (“see You would in a manual sys- + In the Restore Company Backup window, click tem, Using 2 computerized system such 25 QuckB00ks, of accounts using QuickBooks, The message “Your data has been restored successfully” | however, you must categorize will appear, Click each account by assigning an account type (e.g., Bank, Ey] Work the Accounting Problem Accounts Receivable, Income, Bo] = Step 3 Review the information in your textbook Espense ec) | Step 4 Add the Advertising Expense general ledger account. 0 To add a new account: w + Choose Chart of Accounts from the Lists menu, The Chart of o Accounts window appears. (See Figure §-5B.) C i & : Account eI ‘ypes g Account pulldown, menu i Figure 5-5B The Chart of Accounts window g * Click the Account pull-down menu in the bottom left comer of the a Chart of Accounts window. a * Choose New. 5 + In the New Account window select Expense from the Type drop- 3 down list. i The account type identifies the account category (eg. Bank, 2 Account Receivable, Expense, etc). QuickBooks uses this informa- 7 tion to group accounts for financial reports and to determine which a accounts are permanent and which are temporary when it closes an 5 accounting period. + Press Tab and type $01 in the Number field, oa (dT IP! press tab to move to the next field in a data entry window and { SE press Shift + Tab to move to the previous field. 58 Mi Chapter 5Cat Te Ne 8 Copies es es Name Date Class * Press Tab and type Advertising Expense in the Name field. * Review the information shown in Figure § secon L pecan noe Account are 1 Allows you ‘to mark an ae = ; _HSSEEEIEES J es “inactive” ———n Figure 5-5C The New Account window * Click Gnext to enter the next account or [~&] to close on the New Account window. a rR Step 5 Add the remaining expense accounts shown below for Kits & i) = 6 = i c 6 = a (3) 5 = o Pups Grooming. A QUESTION Account No. Name Type ©, When you add a new S05 Equipment Repair Expense Expense count or enter a transac- 510 Maintenance Expense Expense ion using the QuickBooks 520 Rent Expense Expense software, fs it mecessary to 330 Utilities Expense Expense ;manuealy save your work? Ac Some applications, such Note: To edit an account description or opening balance, 38. word processor ora select the account to edit. Click the Account pulldown menu | spreadsheet program, require and choose Edit Account. Enter the correct information and _ | thatyou choose o save your click OK, work (or instance, by choos- : : ing the Save option from the Step 6 Type the opening balances for Cash in Bank ($15,000) and | Fie menu or By eicking the Abe Shultz, Capital ($15,000). Save button on toolbar). i QuickBooks doesnot require To enter opening balances ee ceo tea + Select the Cash in Bank account. save your work It automat- * Click the Account pull-down menu in the bottom left cally updates the company corner of the Chart of Accounts window, files for you. However, you * Choose Edit Account. must pire to back + Press Tab to move to the Opening Balance field and type | NPyour data when you 15000. A (7 TPE QuickBooks wil automatically convert any amount you type as a “Ef round number into dollars and cents. For example, QuickBooks 4 will automatically format the amount 15000 as $15,000.00. If the amount you type includes cents, you must type a decimal point followed by the correct number of cents. Chapter 5m 59CI a eI cl) C 4 A C re cj 2 E o + Press Tab to move to the as of field and type 01/01/2010, or select the date from the calendar icon ( [i] next to this field. ‘+ Review the information shown in Figure §-5D. rey Name Date Class Opening balance Opening balance date Figure 5-5D The Edit Account window * Click Prepare a Report and Proof Your Work Step 7 Print a Chart of Accounts report. To print a Chart of Accounts report: + The Chart of Accounts window must be open. [fit is not, select Chart of Accounts from the Lists menu. + Choose Print List from the Account pull-down menu. + When the List Reports window appears, click [2 + When the Print List window appears, click Step 8 Review the information shown on the report. (See Figure 5-5E.) Account__—$___* umber and name Account ‘ype Figure 5-5E The Chart of Accounts report Step 9 If you notice an error, select Chart of Accounts from the Lists menu to edit/clelete a general ledger account, Analyze Your Work Step 10 Complete the Analyze at ty manually. 60 m Chapter 5 opin ety Te mesa Congas. seeCatt by Te eon Compe, Aris see Name Date Class End the Session Step 11. Before you back up your work, it js a common practice to close all open windows by clicking the [fi in the top right-hand corner of the window. Step 12 To back up your work, follow these steps. ‘+ Choose Back Up from the File menu. * In the Filename field, verify that the file name is correct. (See Figure 5-5F) = op] [Back Up Company File chedule Badaup Curent Conpany bag, {oe about to nak o bac of your QuikBooksconpany fe Ga uatiter tet rien Elename: Problem 55 Sol.Q8W Location: (QuickBooks, BackUp Current Company: ~ Selecta backup option. IFhacking up to @3.54nch dsk or other renovate storage, put the dskin the dive before citing Ok Vem: [potnssgss Om ca i FREE til! Orine badaup copies your fles toon (7 Te Me More | Oonre: Fakedauceekraseaonegunetess” CZ Teneo] | | | | tS) £ 2 x Cs i-} i} ae Co 13) a -% cy Backllp Optens —— Selecting ether opton nl ncrease te verify data ntegrty CiFomet each foppy disk du backup Figure 5-5F Tie QuickBooks Backup window + Click and select the appropriate drive location to save ‘your file. © Click [- ‘* When you receive the message from QuickBooks that your data has been backed up successfully, click Identify at least one income, one expense, and one Mastering ‘equity account. QuickBoo Chapter 5 61Ci a 3 0 2 ry C] eS a 3 GI ¢ i co a Name Date Class Spreadsheet Guide Step-by-Step Instructions Problem 5-8 Completing the Accounting Equation Complete the Spreadsheet Step 1 Read the instructions for Problem S-8 in your textbook. This problem involves determining the missing amounts for the accounting equa- tons given, Step 2 Open the Glencoe Accounting: Electronic Learning Center software. Step 3 From the Program Menu, click on the Peachtree Complete? Accounting Software and Spreadsheet Applications icon. Step 4 Log onto the Management System by typing your user name and password. Step 5 Under the Problems and Tutorials tab, select template 5-8 from the Chapter 5 drop-down list. The template should look like the one shown below. [COMPLETING THE ACCOUNTING EQUATION (mane) (ace) owner's Avceto = Liebilities + Capitel - Withdravals + Revenue Expenses 1 $64,400 $8,200 $56,300 $500 $10,000 $9, 600 2 3 4 ‘ 9 Toral agsers $68,400, Total Lisbiliciee + Omer's Capital - Withdrawals + Revenue - Expenses 64, 400, Step 6 Type your name and today’s date in the cells containing the (name) and (date) placeholders. Step 7 The first equation is completed for you. Notice that Assets ($64,400) equal Liabilities ($8,200) + Owner’s Capital (856,300) ~ Withdrawals ($500) + Revenue ($10,000) — Expenses ($9,600). Step 8 To complete the second equation, type the amounts given in your textbook for Assets, Liabilities, Owner's Capital, Withdrawals, and Revenue in the appropriate cells. To calculate the amount for Expenses, add Liabilities ($525) + Owner's Capital ($18,800) = Withdrawals ($1,200) + Revenue ($12,100) to get a total of $30,225. Subtract Assets ($22,150) from this amount to get $8,075, the missing amount for Expenses. Type 8075 in cell 112. 62 m Chapter 5 snes Cepia The Mei HC.Camo i ete a Capit Oy Te Mei Name __ Date Class > Remember, do not type a dollar sign or a comma when you enter the data—the spreadsheet template will automatically format the data for you. Step 9 To check your work, 1ook at cells 123 and L2S. Total Assets should equal Total Liabilities + Ovener’s Capital ~ Withdrawals + Revenue ~ Expenses Step 10 Complete the remaining equations in Problem 5-8 by typing the appropriate data from your text into the spreadsheet template and calculating the missing amounts. Check the totals at the bottom of the spreadsheet after the amounts have been entered to make sure they are in balance. If the totals do not balance, check your work to find the error. Step 11 Save the spreadsheet using the Save option from the File menu. You should accept the default location for the save, as this is handled by the management system. Step 12 Print the completed spreadsheet. Step 13 Exit the spreadsheet program. Step 14 In the Close Options window, select the loc to save your work Step 15 Complete the Analyze activity from your textbook for this problem. What-If Analysis mn where you would like °(eTIP: Atways save your work before performing What-If Analysis. It is not necessary to save your work after performing What-f Analysis unless your teacher instructs you to do so. Ifyou are required to save your work after performing What-lf Analysis, be sure to rename the spreadsheet to avoid saving over your original work. If Liabilities are $50,000, Owner's Capital is $39,250, Withdrawals are $1,176, Revenue is $15,802, and Expenses are $11,660, what are Assets? TIP use row 11 of the spreadsheet template to answer this question. "N£f Type the amounts for Liabilities, Owner's Capital, Withdrawals, 4 Revenue, and Expenses. Note that the amount for Assets is automatically computed for youl! This is because cell B11 contains a formula that automatically calculates the missing amount. Formulas are very useful in spreadsheets, saving time and improving accuracy. Chapter 5 ml 63 wv Bo 2 i a ey 3 Zs o © 2 (a) 5 a cyDate Name pov. 9 Se nen a a9 wie) 64 M Chapter 5