PEACHTREE COMPLETE 2009 Workshop 7 The Paint Place

Transcription

1 PEACHTREE COMPLETE 2009 Workshop 7 The Paint Place Mini Practice Set Working With a Perpetual Inventory System In this final workshop you will review key concepts for a perpetual inventory system by exploring the features in Peachtree s Inventory module. As usual, the tasks in this workshop build on skills learned in previous workshops, so be sure to complete Workshops 1 through 6 before beginning this one. You will need to download the Paint Place data file for Peachtree 2009 from the MyAccountingLab website before beginning this workshop. Refer to the Installing Peachtree Complete Accounting and Student Data Files document for instructions on downloading this file. One of the most powerful features of a computerized accounting system is its ability to maintain perpetual inventory records easily and accurately. You already experienced this in the previous workshop. Peachtree Complete Accounting accommodates using the FIFO, LIFO or average costing methods of inventory. In addition, you can choose to value all inventory under one costing method or set the costing method by item. And now for some background on The Paint Place. This company, owned by Mike Poole, sells various types of paint. The company uses the Inventory module to track inventory. All items in inventory are valued under the average costing method. The company also uses the Customer and Vendor modules to sell and purchase inventory. The Paint Place extends payment terms of 2/10, n/30 to all customers. Likewise, vendors extend the company discount payment terms. Information on the company s inventory at February 29, 2008 appears next.

2 Peachtree Complete 2009 Workshop 7 The Paint Place Page 2 You are now ready to begin the tasks in the workshop. Open the Company Data File 1. Open Peachtree Complete Accounting 2009 and then open the company file named The Paint Place. Add Your Name to the company Name 2. Click Maintain on the main menu and select Company Information. Add your name or initials to the end of the company name and click OK to store the changes. Managing Inventory Items 3. You can manage items in inventory using the Inventory & Services center. Click this icon to open the center illustrated next.

3 Peachtree Complete 2009 Workshop 7 The Paint Place Page 3 4. You will now add a new item. Click the Inventory Items icon and select New Inventory Item. 5. In Item ID, type in TAB to Description and enter Oil Flat. 7. Keep the Item Class set to Stock item because this identifies the item as merchandise sold to customers. Additionally, you will not enter a description for Sales. This field is used if you want to describe the item differently on customer invoices. 8. You are now ready to enter a selling price. Place your cursor in or tab to the Price Level 1 field and enter The Last Unit Cost field tracks the last price paid to purchase the item. Since this is a new item, you will not change the value supplied. 10. Notice that the cost method has defaulted to Average. If you click the dropdown on the field then the other methods are revealed. Keep the method set to Average. 11. TAB to or place your curser in the Stocking U/M field and use the dropdown to select Gallon. The completed item is illustrated next.

4 Peachtree Complete 2009 Workshop 7 The Paint Place Page Before saving, notice the general ledger account numbers on this item. Sales transactions will post to account 4110; purchase transactions to account 1130; and costs of goods sold to account Click Save to store the item. 14. If you need to change information on existing items then simply lookup the Item ID, enter the new data, and save the changes. The Cost Method field is the field that cannot be changed on existing items. Click Close to exit the window. Record Transactions 15. Now use your knowledge learned in other workshops to enter the following March transactions. This time we have not labeled the software window to use for transactions.

5 Peachtree Complete 2009 Workshop 7 The Paint Place Page Mar. 1 Sold the following item to Elaine Anderson on account. Invoice number 5469 for $ Terms of 2/10, n/30. 5 Oil Semi Gloss 3 Received invoice number 6892 for $1,504 from Wholesale Paints for purchasing the following item. Terms of 2/10, n/30. Be sure to change the unit price. Unit Price 200 Latex High Gloss $ Received invoice number 675 for $906 from Painter's Supply for purchasing the following item. Terms of 2/10, n/30. Unit Price 100 Oil High Gloss $ Sold the following item to Jake Kerns on account. Invoice number 5470 for $ Terms of 2/10, n/30. 5 Oil High Gloss 6 Received check number 8723 for $3, from Wes Young paying invoice number 5468, less a 2 percent discount of $ Issued check number 2345 to Vantage Tints for $1, paying invoice number 5658 for $1,116.33, less a 3 percent discount of $ Sold the following item to Elaine Anderson on account. Invoice number 5471 for $ Terms of 2/10, n/ Latex Semi Gloss 17 Received invoice number 6943 for $1,134 from Wholesale Paints for purchasing the following item. Terms of 2/10, n/30. Unit Price 150 Latex Semi Gloss $7.56

6 Peachtree Complete 2009 Workshop 7 The Paint Place Page Mar. 19 Received invoice number 691 for $1, from Painter's Supply for purchasing the following item. Terms of 2/10, n/30. Unit Price 175 Oil Semi Gloss $ Sold the following item to Jake Kerns on account. Invoice number 5472 for $ Terms of 2/10, n/ Oil Semi Gloss 24 Sold the following item to Elaine Anderson on account. Invoice number 5473 for $ Terms of 2/10, n/ Oil Semi Gloss 25 Received invoice number 787 for $465 from Painter's Supply for purchasing the following item. Terms of 2/10, n/30. Unit Price 50 Oil Semi Gloss $ Sold the following item to Jake Kerns on account. Invoice number 5474 for $ Terms of 2/10, n/ Oil Semi Gloss Displaying and Printing Inventory Reports 16. You will now view reports on inventory activity. Click Reports & Forms on the main menu and select Inventory. Open the Inventory Unit Activity Report illustrated next. This report shows the units sold and purchased during March. It also lists the quantity of items that remain on hand.

7 Peachtree Complete 2009 Workshop 7 The Paint Place Page Close the report. 18. Now open the Inventory Valuation Report illustrated next. This report shows the ending value of inventory on March 31 and should reconcile to the March ending balance in the inventory general ledger account.

8 Peachtree Complete 2009 Workshop 7 The Paint Place Page Close the report. 20. We will look at one last report. Open the Physical Inventory List illustrated next. This report is used when conducting a physical count of inventory. Although the software tracks item quantities, companies must still conduct a periodic physical count to confirm that physical quantities reconcile to software quantities. In addition, physical counts will identify damaged or obsolete items.

9 Peachtree Complete 2009 Workshop 7 The Paint Place Page Close the report. Inventory Adjustments 22. Let us assume that The Paint Place conducted a physical count of inventory and discovered that two items of Latex Flat paint were damaged. You will now post this adjustment to inventory. 23. Click Tasks on the main menu and select Inventory Adjustments to open the window illustrated next. (Note: You can also click the Inventory Adjustments icon on the Inventory & Services center.) 24. Lookup and select Item ID Enter March 31, 2008 as the posting Date. 26. TAB to Adjust By and enter TAB to Reason to Adjust and enter Damaged gallons. The completed window is illustrated next.

10 Peachtree Complete 2009 Workshop 7 The Paint Place Page Note the GL Source Acct field. This is the field to be debited when posting the entry. Because this is a negative adjustment to inventory, the account is set to 5050 Cost of Goods Sold. By default, it will credit 1130 Merchandise Inventory. 29. Click Save and then Close. 30. Return to the reporting window and reopen the Inventory Valuation Report. Notice that the quantity on hand for item 001 is now 640 units. 31. Close the report and the reporting window. Print Reports 32. Print the following reports to document your tasks. a. General Ledger Trial Balance (Total = $97,424.02) b. Aged Receivables (Total = $6,664.25) c. Aged Payables (Total = $8,653.54) d. Inventory Valuation Report (Total = $33,698.06) e. Income Statement (Net Income = $804.56) f. Balance Sheet (Total Assets = $93,113.73) Backup and Exit the Software 33. Back up your work to a file that includes the company name. 34. You have finished the workshop and can exit the software.