PEACHTREE COMPLETE 2009 WORKSHOP 6 THE CORNER DRESS SHOP

Transcription

1 PEACHTREE COMPLETE 2009 WORKSHOP 6 THE CORNER DRESS SHOP Mini Practice Set Reviewing the Accounting Cycle for a Merchandise Company This workshop will help you review the key concepts of a merchandise company by asking you to complete customer, vendor, payroll and general ledger activities in Peachtree. The tasks in this workshop correspond to the manual mini practice set for The Corner Dress Shop appearing at the end of Chapter 12. The Peachtree skills used in this workshop were learned in previous workshops so be sure to complete Workshops 1 through 5 before beginning this one. You will need to download The Corner Dress Shop 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. You are the bookkeeper for The Corner Dress Shop so we have gathered the following information for you. It will be your task to complete the accounting cycle for March. The Corner Dress Shop is owned by Betty Loeb and is located at 1 Milgate Road, Marblehead, Massachusetts, What follows are the trial balance, accounts receivable aging, and accounts payable aging reports for February 29,.

2 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 2

3 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 3 The business employs three people who are paid once per month at the end of the month. Paychecks are printed out of the cash account. Information for March salaries follows. March Mel Case $3,325 Jane Holl 4,120 Jackie Moore 4,760 The software is setup to use the following tax rates to calculate employee tax withholdings and employer payroll taxes. 1. FICA tax rates a) OASDI rate is 6.2 percent on first $102,000 of gross wages per year. b) Medicare rate is 1.45 percent of annual gross wages. 2. FIT rate a) The software will use the table for this problem that is illustrated in the text. 3. SIT rate is 7 percent of gross wages. 4. SUTA rate is 4.8 percent of the first $7,000 in gross wages paid to each employee per year. 5. FUTA rate is 0.8 percent of the first $7,000 in gross wages paid to each employee per year.

4 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 4 You are now ready to begin the tasks of this workshop. Open the Company Data File 1. Begin by opening Peachtree Complete 2009 and then open the data file named The Corner Dress Shop. 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. Printing an Inventory Valuation Report 3. You should review company inventory information before posting transactions. Click Reports & Forms on the main menu and select Inventory. Double click the Inventory Valuation Report to display it. This report provides information on the 6 items of inventory, including the costing method and quantity on hand. Print this report so you can compare it to a report you will print at the end of the workshop. Maintaining Inventory Items 4. Peachtree's Inventory module tracks inventory items, including item number, description, sales price, purchase cost, and on hand quantities. You will be asked to change inventory sales prices in the workshop so let us look at maintaining inventory items. a) Click Maintain on the main menu and select Inventory Items. b) Using the lookup on Item ID, select item "6000. Review information in the next illustration and the explanation that follows.

5 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 5 The Description field is used on sales invoices and vendor bills. If a change is needed, you simply place the cursor in the field and edit. The General Tab stores information about the item. The current selling price on this item is found in the Price Level 1 field. When instructed to change a price later in the workshop, return to this window, open the item, and type the new price into this field. The Cost Method field sets an item s costing method. Peachtree accommodates the FIFO, LIFO and Average costing methods. You cannot change this method after creating the item. The item also stores default general ledger accounts used when posting sales invoices and vendor bills. Finally, you can establish minimum stocking level quantities so that Peachtree warns if selling an item causes on hand quantities to fall below this level. If you also set a reorder

6 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 6 quantity and a Preferred Vendor ID then Peachtree can automatically generate orders to the vendor to buy the item. c) Click Close to exit the window. Record March Transactions 5. You are now ready to record the following transactions. We have identified the appropriate transaction window to use based on the following: General Journal (GJ) Sales/Invoicing (SI) Customer Credit Memos (CCM) Receipts (R) Purchases/Receive Inventory (PR) Vendor Credit Memos (VCM) Payments (P) Payroll (PE) 1 Received check number 7634 for $2,200 from Bing Company paying invoice number 12 with no discount. (Note: Click OK if prompted to select the Cash account.) (R) 2 Purchased the following merchandise from Morris Company on account. Invoice number 1210 for $10,000. Terms of 2/10, n/30. (PR) 184 Style 1000 Dresses 180 Style 2000 Dresses 3 Sold the following merchandise to Ronald Company on account. Invoice number 51 for $7,000. Terms of 2/10, n/30. (SI) 48 Style 1000 Dresses 30 Style 2000 Dresses 8 Style 3000 Dresses 9 Style 4000 Dresses 6 Style 5000 Dresses 7 Style 6000 Dresses

7 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 7 6 Sold the following merchandise to Ronald Company on account. Invoice number 52 for $5,000. Terms of 2/10, n/30. (SI) 47 Style 1000 Dresses 24 Style 2000 Dresses 5 Style 3000 Dresses 3 Style 5000 Dresses 4 Style 6000 Dresses 9 Purchased the following merchandise from Morris Company on account. Invoice number 1286 for $5,000. Terms of 2/10, n/30. (PR) 92 Style 1000 Dresses 90 Style 2000 Dresses 9 Sold merchandise to Ronald Company on account. Invoice number 53 for $3,000. Terms of 2/10, n/30. (SI) 18 Style 1000 Dresses 20 Style 2000 Dresses 4 Style 3000 Dresses 1 Style 4000 Dresses 4 Style 5000 Dresses 9 Issued check number 110 for $300 to Rhonda s Cleaning Service for cleaning services. (Note: Click OK if prompted to select the cash account.) (P)

8 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 8 10 Ronald Company returned the following merchandise costing $1,000 on invoice number 52. Issued credit memo number CM10. Change the GL Account for returned items to the sales returns and allowances account. (CCM) 5 Style 1000 Dresses 5 Style 2000 Dresses 3 Style 3000 Dresses 2 Style 6000 Dresses 11 Purchased the following merchandise from Jones Company on account. Invoice number 4639 for $10,000. Terms 1/15, n/60. (PR) 144 Style 3000 Dresses 124 Style 4000 Dresses 12 Issued check number 111 for $9,800 to Morris Company paying invoice number 1210, less 2 percent discount of $200. (P) 13 Sold the following merchandise for $7,000 in cash. Use Customer ID of Cash Sales and Reference number 102. (R) 24 Style 1000 Dresses 28 Style 2000 Dresses 24 Style 3000 Dresses 26 Style 4000 Dresses 1 Style 6000 Dresses

9 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 9 14 Returned the following merchandise to Jones Company costing $2,000 on invoice number Vendor issued credit memo number DM4. You should note that these items are being returned to inventory because the GL Account is the inventory account. Thus, the items are available for resale and will not be posted to the purchases returns and allowances account. (VCM) 32 Style 3000 Dresses 22 Style 4000 Dresses 15 Paid the FICA (OASDI and Medicare) and FIT tax liabilities as listed on the February trial balance through EFT. (GJ) 15 Due to increased operating costs, The Corner Dress Shop must raise sales prices as follows. Make these changes to the items. Item New Sales Price Style 1000 Dresses $60.00 Style 2000 Dresses $70.00 Style 3000 Dresses $80.00 Style 4000 Dresses $90.00 Style 5000 Dresses $ Style 6000 Dresses $ Sold the following merchandise for $29,000 in cash. Use Reference number 103. (R) 124 Style 1000 Dresses 144 Style 2000 Dresses 72 Style 3000 Dresses 61 Style 4000 Dresses 1 Style 5000 Dresses 1 Style 6000 Dresses 15 The owner, Betty Loeb, paid herself $100 on check number 112 for personal expenses. (P) 15 Paid the SIT tax liability as listed on the February trial balance through EFT. (GJ) 16 Received check number 5432 for $3, from Ronald Company paying invoice number 52, less 2 percent discount of $ (R)

10 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page Received check number 5447 for $7,000 from Ronald Company paying invoice number 51 with no discount. (R) 16 Sold the following merchandise to Bing Company on account. Invoice number 54 for $3,200. Terms of 2/10, n/30. (SI) 12 Style 1000 Dresses 10 Style 2000 Dresses 11 Style 3000 Dresses 10 Style 4000 Dresses 21 Purchased a delivery truck on account from Moe's Garage. Invoice number 7113 for $17,200. (PR) 22 Sold the following merchandise to Ronald Company on account. Invoice number 55 for $4,000. Terms of 2/10, n/30. (SI) 24 Style 1000 Dresses 24 Style 2000 Dresses 3 Style 3000 Dresses 2 Style 4000 Dresses 2 Style 5000 Dresses 2 Style 6000 Dresses 23 Issued check number 113 for $7,920 to Jones Company paying invoice number 4639, less 1 percent discount of $80. (P) 24 Sold the following merchandise to Bing Company on account. Invoice number 56 for $2,000. Terms of 2/10 n/30. (SI) 1 Style 2000 Dresses 10 Style 3000 Dresses 10 Style 4000 Dresses 1 Style 5000 Dresses 1 Style 6000 Dresses

11 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page Purchased the following merchandise on check number 114 for $1,000 from Jones Company. (P) 16 Style 3000 Dresses 11 Style 4000 Dresses 27 Purchased the following merchandise from Blew Company on account. Invoice number 437 for $6,000. Terms of 2/10, n/30. (PR) 60 Style 5000 Dresses 66 Style 6000 Dresses 28 Received check number 5562 for $3,920 from Ronald Company paying invoice number 55, less 2 percent discount of $80. (R) 28 Received check number 8127 for $3,200 from Bing Company paying invoice number 54 with no discount. (R) 29 Purchased the following merchandise from Morris Company on account. Invoice number 1347 for $9,000. Terms of 2/10, n/30. The vendor has increased prices so enter the new prices as listed. (PR) New Price 150 Style 1000 Dresses $ Style 2000 Dresses $ Sold the following merchandise to Blew Company on account. Invoice number 57 for $10,000. Terms of 2/10, n/30. (SI) 6 Style 3000 Dresses 5 Style 4000 Dresses 41 Style 5000 Dresses 38 Style 6000 Dresses

12 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page Issued check number 115 for $31 to replenish the petty cash fund for the following March expenses. Use the Petty Cash vendor and record the amounts in the appropriate GL Account. (P) Expense Amount Cleaning expense $6.00 Postage expense $5.00 Delivery expense $10.00 Miscellaneous expense $ Issued the following payroll checks for the pay ending date of March 31. Print checks out of the cash account on starting check number 116. Note: You will need to enter the Salary amount. (PE) Employee March Wages Case, Mel $3,325 Holl, Jane 4,120 Moore, Jackie 4,760 Print Working Reports 6. Print the following reports: a. General Ledger Trial Balance (Total = $126,093.81) b. Aged Receivables (Total = $15,000.00) c. Aged Payables (Total = $39,100.00) d. Payroll Register (Net Pay = $9,203.97) Record March Adjusting Entries 7. Record the following general journal adjusting entries on March 31,. Use ADJ as the Reference. a. Expired rent of $600. b. Truck depreciation of $150. c. Earned rental income of $200. d. You do not need to adjust inventory because the software uses a perpetual inventory system and costs of goods sold posts at the time of sale. Furthermore, the software uses an average inventory costing system, which specifically identifies the cost of items sold. Finally, you will notice that the ending inventory balance in the workshop is $13,950, which differs from the

13 Peachtree Complete 2009 Workshop 6 The Corner Dress Shop Page 13 ending inventory balance in the manual problem in the text. This occurred because the merchandise returned on March 14 went back into inventory and a purchase price increase for inventory occurred on March 29. Consequently, March cost of goods sold for the workshop will differ from cost of goods sold results in the manual problem. The check figure for cost of goods sold is $30, Print Final Reports 8. After posting the adjusting journal entries, close the General Journal Entry window and print the following reports. a. General Journal b. General Ledger Trial Balance (Total = $126,243.81) c. General Ledger Report d. Balance Sheet (Total Capital = $33,619.82) e. Income Statement (Net Income = $24,616.72) f. Inventory Valuation Report (Item Value = $13,950.00) 9. Compare the Inventory Valuation Report with the one printed at the beginning of the workshop. Notice that Peachtree has created a new average cost for items sold and purchased during the month. Close the Accounting Period 10. Back up your work to a file that includes the company name. 11. Close the accounting period using the Period button. Set the new period to 04 Apr 01, to Apr 30, and click OK. Click No to printing reports and No to running an Internal Accounting Review. 12. You have completed this workshop and can now exit the software.