Computerized Accounting Class exercise: Part I- maintaining PART of Peachtree accounting Greenland Corporation is a merchandise business. Fiscal year begins on January consisting 12 month accounting periods and Greenland converts to computerized system on January, 2014. Entering payroll data starts on March 2014. Accounting method is accrual and posting method is real time. 1. Create the following chart of accounts and enter beginning balance as of march 1, 2014 Do not enter beginning balance before you complete maintaining chart of accounts. Account ID 1520 1530 1540 1610 1710 Account Description cash on hand petty Cash fund W/o Hasset Payroll Fund Cash at bank-CBE, S.Tara Br. A. A Account Recevable (Trade Debtor) Notes Receivable Allowance for uncollectible ac Staff Detors prepaid rent prepaid insurance Merchandise inventory Merchandise in stationary Merchandise inventory cosme Inventory Elec Inventory Soft Office supplies Office furni 1710-01 1720 Acc. Depp Off. fur Vehicle 1720-01 Acc. Dep vehicle 1110 1120 1140 1160 1210 1220 1230 1410 1420 1430 1500 1510 account type Cash Debit 500.00 Cash Cash 65,000.00 Cash 300,000.00 Accounts Receivable Accounts Receivable 24,000.00 5,000.00 Accounts Receivable Other Assets Other Current Assets Other Current Assets 1,000.00 12,000.00 3,000.00 Credit 430.00 Inventory Inventory 13,200.00 Inventory Inventory Inventory Other Current Assets Fixed Assets Accumulated Depreciation Fixed Assets Accumulated Depreciation 5,400.00 50,000.00 900.00 18,700.00 3,900.00 180,000.00 50,000.00 1 1810 2110 2210 2220 2240 2250 2640 2650 2660 2810 2820 3110 3150 3160 3210 3310 4000 4110 4120 4130 4140 4210 4310 4320 5000 5110 5120 5130 5140 5900 6100 6100-01 6100-02 6100-03 6100-04 6110 6120 6130 Bond Sinking Account Payable Employee income tax Sales tax payable Dividend Payable Accrued liability pension Employee union Credit Asso Long term loan Bonds payable common stock Additional paid in capital Treasure stock Retained Earnings Dividend Sales Sales -Stationary item Sales Cosmetics Sales Electronics Sales-soft drink other income Sales return and allowance Sales discount cost of sales Cost of sales stationary cost of sales cosmetic cost of sales electronics Cost of sales soft drink Discount on purchase Salary Expense Overtime Allowance-taxable Allowance-Non taxable Bonus Payroll tax expense Rent Expense Insurance Expense Other Assets Accounts Payable Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Other Current Liabilities Long Term Liabilities Long Term Liabilities Equity-doesn't close Equity-doesn't close Equity-doesn't close Equity-Retained Earnings Equity-gets closed Income Income Income Income Income Income 80,000.00 25,600.00 2,140.00 8,530.00 40,000.00 150,000.00 250,000.00 80,000.00 5,000.00 100,500.00 20,000.00 175,400.00 110,000.00 3,200.00 Income Income Cost of Sales 200.00 Cost of Sales Cost of Sales 100,000.00 78,000.00 Cost of Sales Cost of Sales Cost of Sales Expenses Expenses Expenses Expenses Expenses Expenses Expenses Expenses 300.00 14,000.00 10,000.00 3,000.00 2 6140 6150 Supplies Expense Utilities expense Depreciation expense (fixed as uncollectable/bad debt expense Stock Overage/Shortage Miscellaneous expense Total: 6160 6170 6180 6190 Expenses Expenses 4,000.00 1,600.00 Expenses 1,500.00 Expenses 700.00 Expenses Expenses 3,300.00 1,000,000.00 1,000,000.00 2. Maintaining vendor data Standard credit term and credit limit are 2/10, n/30 and 500,000 respectively. Account payable account is used as purchase default account. Create all vender data and enter balance. Vendor ID V01 V02 Vendor name Nile trading Dire I&E V03 V04 V05 DELTA trading DT COSMO ETC V06 ERCA Credit terms Standard 2/10,n/45 Standard Standard prepaid Due on the 10th day of next month Invoice no. PI182 PI350=BR 1,500 PI365=7,700 PI 001 Invoice date 18/03/2011 23/10/2011 25/12/2011 balance 15,400 9,200 31/05/2011 1,000 - - 3. Sales tax All merchandise sales are subject to 15% tax that will be remitted to ERCA. MAINTAIN SALES TAX AUTHORITY USING THE FOLLOWING DATA . Sales Tax Authority ID Description VAT VALUE ADDED TAX Tax Rate 15% TAX PAYABLE TO ERCA TAX PAYABLE GL 2220 3 Sales Tax Code ID Description Tax Freight VAT Value added tax No 4. Maintaining customer data Standard credit term and credit limit are 2/10, n/30 and 500,000 respectively. sales account is used as sales default account. Create all vender data and enter balance. ID NAME CREDIT TERMS INVOICE number Invoice date Balance C01 Kokeb distributers Standard CRSI-292 23/03/2011 4,000.00 C02 Feven family Standard CRSI-251 22/11/2011 9,500.00 C03 Stare computer Standard - = C04 Selam beauty 2,10, n/45 - = C05 Emi retail Standard CRSI-254 11/11/2011 4,100.00 CRSI-257 09/02/2011 6,400.00 TOTAL 24,000.00 5. MAINTAINING INVENTORY All merchandises that the organization sells are classified either as Stock Items or Master Stock Items. The company has two pricing mechanisms: wholesale Price and Retail Price. Wholesale Price is 10% less than retail price on all products. A minimum quantity of one dozen (12 units) of any product (combined together) is considered as whole sale; any quantity less than 12 units is considered as retail sale 4 5.1 stock items and their balance Item No. Description Unit Item Min. Reorder Qty. Unit Price Type Qty. Qty On hand Cost IN-0101 MARKER 30.00 Station 5 ary 6 IN-0102 Ruled paper 20.00 Station 5 ary 6 300 18.00 IN-0303 Pen 18.00 Station 5 ary 6 264 15.00 IN-0404 Writing pad 6.00 Station 5 ary 6 288 5.00 IN-0505 PERFUME 225.00 Cosme tics 5 6 20 198.00 IN -0606 HAIR CRAME 70.00 Cosme tics 5 6 36 40.00 100 24.00 5 5.2 Master stock item Item Description Id Item Type E.T-01 Television electronics GL account number 153-inventory 413-sales 513-cost of sales Primary Attribute Name: brand Secondary attribute: Name: size ID Description ID Description Unit price Quantity on hand Unit cost SN SONY 14 14 INCH 1,000 20 730 SM SUMSUNG 21 21 INCH 1,700 10 1,500 PH PHILIPS 24 24 INCH 2,200 10 2000 6
