chapter 05horowitk/documents/chap005_002.pdfaccounting-basics-29653.html. read the bookkeeping and...
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Chapter 05:General Ledger, Inventory,
and Internal Control
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
General Ledger and Inventory
In Chapter 5, you learn more about the General Ledger chart of accounts.
Peachtree includes over 75 sample charts of accounts. You can set up your own chart of accounts, copy a chart of accounts used by another company, or use one of the samples.
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.
Another Peachtree feature is user security. On pages 190-198, Security and Internal Control, you learn about how Peachtree keeps company data secure.
5-2
Peachtree Tip
Peachtree uses a perpetual inventory
system. See the tables on page 188 to
review how Peachtree journalizes the
purchase and sale of inventory items.
5-3
Backing Up Chapter 5
Backup File (.ptb)
Excel (.xlsx) and Adobe (.pdf) KB Page Nos.
Chapter 5.ptb 3,576 KB 198-199
Exercise 5-2.ptb 3,571 KB 203
Exercise 5-2_General Ledger
Trial Balance.xlsx
15 KB 203
Exercise 5-2_General Ledger
Trial Balance.pdf
56 KB 203
In Chapter 5, you make two backups, export the General
Ledger Trial Balance to Excel, and save one PDF file.
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Peachtree Help: Chart of Accounts,
pp. 166-167
Complete steps 1-6 on pp. 166-167. The Peachtree help window appears.
Toolbar
Navigation pane
Topic pane
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Chapter 5:
Glossary of Terms
5-6
Perpetual inventory, p. 165
In a perpetual inventory system, an up-to-
date record of inventory is maintained. The
inventory account is revised each time a
purchase or sale is made.
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Chart of accounts, pp. 166-167
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.
5-8
HTML, p. 166
HTML is an acronym for Hypertext Markup
Language. Peachtree’s Help windows display in
HTML format.
5-9
Inventory System, p. 178Peachtree’s Inventory & Services Navigation Center shows Peachtree’s
inventory system, which includes information and access points related
to the company’s inventory items. The Inventory & Services selection
shows Peachtree’s inventory module or inventory system. The
Inventory & Services workflow diagram is shown below.
Workflow
diagram
5-10
Internal Control, p. 190
Internal control is an integrated system of people,
processes, and procedures that minimize or eliminate
business risks, protect assets, facilitate reliable
accounting, and promote efficient operations. (Refer
to pages 190-198.)
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Audit Trail, pp. 194-198If changes are made to company records, Peachtree’s audit trail
provides documentation. An audit trail records all entries and changes
related to the company’s data, including actions by specific users.
5-12
Going to the Net, pp. 199-200
Access this website
http://www.nolo.com/legal-encyclopedia/bookkeeping-
accounting-basics-29653.html. Read the Bookkeeping and
Accounting Basics article.
1. List the three steps for keeping your small business accounting records.
2. From this website, link to another area.
5-13
Analysis Questions, p. 2041. List four ways that Peachtree includes user security
and internal control.
a. Setting up user names, passwords, and access
rights.
b. The ability to associate the user currently logged into
the Peachtree company with the data that is being
entered.
c. Limit access to information in Peachtree’s Navigation
Centers.
d. Audit Trail reports that show what each user entered.
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Analysis Questions (continued), p. 204
2. How is the audit trail associated with user security?
Provide an example.
When User Security is set up, Peachtree can
associate the user currently logged into the
company with the data being entered. For
example, USER1 adds a customer record. USER2
then logs on and modifies the customer record.
The Audit Trail report will show that USER2 was
the last person who worked with the customer
record, and it will display what was changed.
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Analysis Questions (concluded), p. 204
3. How does user security address the purpose of internal
control?
By limiting access to accounting data, Peachtree's user
security feature addresses an important purpose of internal
control. For example, assigning users to one Navigation
Center increases the accuracy of records and reports. Also,
since one user assumes responsibility for repetitive tasks,
the efficiency of operations increases. User security reduces
the business's risk of users changing or deleting data
inappropriately which also safeguards accounting data. User
security establishes accountability and allows the company
to track who has performed various maintenance and
recording tasks.
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Assessment Rubric, p. 204
Date Transaction
Navigation
Center/Module
Task
Window
Journal
Dr./Cr.
3/18 Transfer $1,200
from the Regular
Checking Account to
the Payroll
Checking Account.
Banking; General
Journal Entry, New
General Journal
Entry
General Ledger
General
Journal
Entry
window
General
Journal
Dr. 10300,
Payroll
Checking
Account,
$1,200
Cr. 10200,
Regular
Checking
Account,
$1,200
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Assessment Rubric (concluded), p. 204
Date Transaction
Navigation
Center/Module
Task
Window
Journal
Dr./Cr.
3/19 Purchased two (2)
Oriole Feeders from
DeJulia Wholesale
Suppliers, Invoice
No. 94977, $14.
Vendors &
Purchases; Enter
Bills, New Bill
Accounts Payable
Purchases/
Receive
Inventory
window
Purchases
Journal
Dr. 12000,
Inventory, $14.
Cr. 20000,
Accounts
Payable/DeJulia
Wholesale
Suppliers, $14.
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Online Learning Center Go online to www.mhhe.com/yacht2012 for additional
resources. Link to Student Edition, select Chapter 5.
o Interactive Testing
o Glossary of Terms
o Feature Quizzes
o PowerPoints
o Assessment Rubrics
o Going to the Net
o QA Templates
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