Computerized Accounting With
PEACHTREE 2012
LECTURE NOTES
Chapter 1 – Getting Started
This chapter focuses on getting students familiarized with Peachtree Complete
Accounting 2012. The processes for navigating the software are explored and students
are made aware of the Help feature.
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Focus on hardware and storage issues that confront your respective school.
Review the “Student Supplements” section starting on page xi of the text. Topics
to be covered include installing Peachtree 2012 from the CD, extracting company
files from the CD, and creating and naming company files.
Instruct students on where they should create and save their company files.
Show students how to navigate Peachtree with the Navigation Bar and Menu Bar.
Explain the backup and restore feature at this point.
Explain the purpose of accounting and review the accounting process.
Chapter 2 – Setting Up a Company
In this chapter students will learn how to create companies in Peachtree. The following
accounting concepts will be introduced: the chart of accounts, the types of business
organizations, and the concepts of debits and credits.
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Review the accounting concepts given above.
Reinforce the idea of debits and credits.
Define the different account types available with Peachtree.
Explain how the selection of account ID, account description, and account type
affect the account’s placement within the financial statements.
Advise students to include their names at the end of each company name.
Compare the “Build your own chart of accounts” option with the “Use a sample
business that closely matches your company” option.
Review the accrual basis and cash basis of accounting.
Show students how to add, delete, and modify specific accounts.
Demonstrate how to enter beginning balances.
Advise students of the importance of reading several paragraphs ahead before
performing an operation with the software. This will avoid problems associated
with the step-by-step process approach.
Chapter 3 – Entering Transactions for a Cash Business
The focus of this chapter is entering transactions using the General Journal Entry
function. In this chapter, only a cash business is addressed. Therefore, there are no
accounts payable or accounts receivable. Transactions are demonstrated using a sample
manual journal entry, and a step-by-step process is demonstrated. Additionally, students
are introduced to Peachtree’s method of preparing financial statements, which will be
covered in more detail in Chapter 7.
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Review the processes of journalizing and posting.
Explain how the general journal and general ledger aid in the preparation of the
financial statements.
Make students aware that the sample general journal entries are in fact samples.
Often students try to recreate these entries before starting the steps. Let them
know that the entry is for illustration purposes only.
Show students how to enter a transaction using the General Journal Entry
function.
Instruct students how to use the List, Save, Delete, and Recur options from the
General Journal Entry window to edit, post/save, delete, and automatically create
journal entries.
Remind students that Peachtree will not allow posting unless the entry is
balanced.
Emphasize the importance of dates and accounting periods.
Review the various financial statements including the balance sheet, income
statement, and statement of changes in financial position.
Chapter 4 – Accounts Receivable and Sales for a Business
This chapter focuses on Peachtree’s treatment of sales and accounts receivable. There is a
substantial discussion on the topics of accounts receivable and sales, including an
introduction to subsidiary ledgers. Students will learn to process accounts receivable and
sales transactions. In addition, the chapter addresses the treatment of uncollectible
accounts.
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Remind students of the Navigation Bar, Main Menu bar, and their ability to
access different areas of the software using several different methods.
Demonstrate how to set up a customer account and the various information
needed such as credit terms and sales defaults.
Remind students to use the appropriate GL Sales account number when setting up
a customer account and entering transactions.
Explain the concept of discounts and Peachtree’s automated system for
calculating discounts.
Show students how to use the Sales/Invoicing function to enter sales transactions
on account.
Demonstrate how a partial receipt on a sale is entered.
Explain the Alert function.
Discuss uncollectible accounts in detail.
Review available customer reports.
Chapter 5 – Accounts Payable and Purchases for a Service Business
This chapter focuses on Peachtree’s treatment of accounts payable and purchases. There
is a substantial discussion on the concepts of accounts payable and purchases, including a
description of accounts payable subsidiary ledgers. Students will learn to create vendor
accounts in Peachtree and process accounts payable transactions.
© Paradigm Publishing, Inc.
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Reinforce the concept of controlling accounts and subsidiary ledger accounts.
Reinforce the concept of purchase discounts.
Demonstrate how to set up a vendor account and the various information needed
such as credit terms and expense defaults.
Show students how to use the Purchases/Receive Inventory function to enter
purchase transactions on account.
Demonstrate how a partial payment on a purchase is entered.
Review available vendor reports.
Chapter 6 – Cash Payments and Cash Receipts
In this chapter, cash payments and cash receipts are discussed, and the processes for
entering transactions in the cash receipts and payments windows are explained. Bank
reconciliation is explained and demonstrated. Invoice discounts are reviewed.
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Emphasize the importance of cash management.
Demonstrate how the Payments function is used to pay previously recorded
transactions and the Write Checks function is used to pay unrecorded transactions.
Explain the “Accounting Behind the Screens” feature.
Remind students to print checks in blank check format.
Demonstrate how to use the Account Reconciliation function from the Tasks
menu to perform a bank reconciliation.
Show how to print invoices.
Chapter 7 – Preparing the Financial Statements
The financial statements were introduced in Chapter 3. In this chapter, the financial
statements are discussed in detail. In addition, students are introduced to the report
formatting functions of Peachtree. The processes for changing the accounting period and
closing the accounting period are explained.
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Explain the importance of adjusting entries and give several examples of each
type.
Remind students that all current balances are available from the trial balance or
general ledger. They will need that information for adjusting entries.
Review the different financial statements. Emphasize the statement of cash flows.
Let students experiment with changing the look of financial statements.
Review the flow of information through the accounting cycle.
Demonstrate how to change the accounting period.
Chapter 8 – Purchases of Inventory in a Merchandise Business
Students are introduced to the accounting procedures associated with inventory
transactions. The two basic inventory methods are introduced conceptually and
explained. Basic Peachtree inventory methods are explained and demonstrated. Inventory
subsidiary accounts are introduced and demonstrated. Inventory transactions are
processed.
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Review the basic formula for determining the cost of goods sold.
Emphasize and model the two inventory systems: perpetual and periodic.
Explain the relationship between inventory and the cost of goods sold.
Explain how the selection of an inventory valuation method (FIFO, LIFO, and
Average) affects the gross profit.
Emphasize Peachtree’s use of a perpetual inventory system. Explain the concept
of purchases within the perpetual system.
Model the different inventory costing methods.
Demonstrate how to set up inventory items.
Demonstrate the use of purchase orders using the Purchase Orders function and
the receipt of goods using the Purchases/Receive Inventory function.
Show how the Vendor Credit Memos function is used to record the return of
goods to vendors.
Reinforce the concept of discounts and the process for determining discounts.
Review available inventory reports.
Chapter 9 – Sales of Inventory in a Merchandise Business
This chapter introduces the concepts behind accounting for the sale of merchandise.
Students create sales tax accounts and create sales orders and invoices. The processing of
sales transactions is explained and modeled. In addition, finance charges are reviewed
and practiced.
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Demonstrate the use of sales orders using the Quotes/Sales Orders function and
the selling of goods using the Sales/Invoicing function.
Show how the Credit Memos function is used to record the return of goods from
customers.
Explain that there can be more than one income, or revenue, account.
Reinforce the notion that businesses collect sales tax at the behest of the
government and the sales tax is added to a customer’s accounts receivable.
Remind students that Sales Tax Payable is a current liability.
Demonstrate how to set up finance charges.
Review available sales reports.
Chapter 10 – Payroll
Chapter 10 introduces students to payroll. The concepts are explained and modeled. The
Peachtree Payroll Setup Wizard is introduced, explained, and demonstrated. Students
make payroll transactions and print payroll reports.
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Review the payroll laws and regulations.
Explain the payroll deduction process and both the employee and employer
payroll tax liabilities.
Be sure that students realize that FICA payments are collected from both the
employer and the employee.
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Demonstrate the payroll setup process including the Payroll Setup Wizard,
employee defaults, and employee records.
Explain the difference between Peachtree-maintained and user-maintained payroll
formulas.
Demonstrate how to process payroll for an individual and for a group.
Review the various payroll reports.
Chapter 11 – Job Costing
This chapter focuses on job costing. The concepts associated with job costing are
introduced. The different phases and codes supported by Peachtree are explained and
demonstrated. Students use the job costing tools at several levels, inputting transactions
and printing reports.
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Emphasize the need for and benefits of job costing.
Explain the phase codes and cost codes.
Inform students of the importance of good estimates when bidding jobs.
Review the various job costs: materials, labor, and overhead.
Show how to set up jobs.
Demonstrate how to apply inventory costs to a job using the Inventory
Adjustments function.
Demonstrate how to apply labor costs to a job using the Jobs option from the
Payroll Entry window.
Review available job reports.
Chapter 12 – Partnerships and Corporations
The characteristics, accounting concepts, and accounting treatment of partnerships and
corporations are explained and modeled. The advantages and disadvantages of each
business type are evaluated. Students create the accounts that are unique to partnerships
and corporations and use these accounts in transactions. In addition, accounting for stock
and dividends is explained and modeled.
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Review the advantages and disadvantages of the partnership and corporation
forms of business organization.
Explain the necessary equity accounts for each partner and how they are affected
as a result of investments and withdrawals.
Review the basic formula for determining retained earnings.
Review the processes of changing an accounting period and closing the fiscal year
using the Year-End Wizard.
Explain the process for splitting profits according to partnership agreements.
Remind students that calculations must be done manually and then entered in
Peachtree.
Review the types of stock.
Demonstrate the journal entries for declaring and paying cash dividends.
Explain the differences between a Statement of Retained Earnings and a
Statement of Owner’s Equity.
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Appendix – Fixed Assets
This is a topic not covered in many Peachtree Accounting textbooks. This chapter focuses
on the tax and accounting treatment of fixed assets. Students are introduced to fixed
assets and what constitutes a fixed asset. Along with the discussion of fixed assets is a
discussion of depreciation. Several of the common depreciation methods are explained
and modeled.
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Review the concept of depreciation.
Model several depreciation methods.
Emphasize the need for calculating tax and book depreciation.
Demonstrate the adjusting journal entry for depreciation.
Remind students that depreciation must be updated to the day of asset disposal.
Explain how a gain or loss is determined on the disposal of a fixed asset.
Demonstrate the journal entry to record either a gain or loss on a sale of a fixed
asset.
Comprehensive Problems
There are two comprehensive problems included in this Instructor’s Guide. The first
problem focuses on Chapters 1-7. The intent of this problem is to enhance the students’
process, application, and problem solving skills associated with a service business. The
second problem, focusing on Chapters 8-11, deals with a merchandising business,
inventory, payroll, and costing.
Additions to the Instructor’s Guide
In addition to the comprehensive problems, the Instructor’s Guide includes the following
items:
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Sample course syllabi for semester- and quarter-long courses
A glossary assembled from the margin terms of the text
Answers to all end-of-chapter Content Check questions
Answers to all end-of-chapter Case Problems, including required printouts
in PDF format and backups of completed company files
Mid-term and final objective tests
Chapter quizzes and answers
Objectives and overviews
Additional Product Ancillaries
Each textbook comes with a CD-ROM containing the education version of Peachtree
Complete Accounting®2012. In order to install the Peachtree program, the students (and
instructors) will need to enter a serial number. The serial number is available by
registering the program at http://www.peachtree.com/student/regi. The education version
of Peachtree®2012 program is only valid for 14 months from the date of registration.
This CD-ROM also provides the students with all the necessary company files to
complete the required assignments. These files can be downloaded to a network or to
individual student’s computers—see page xii of the textbook for instructions.
© Paradigm Publishing, Inc.
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