Chapter 10:
Completing Quarterly Activities
and Closing the Fiscal Year
Completing Quarterly Activities
and Closing the Fiscal Year


Chapters 9 and 10 work together. In Chapter 10,
you will continue recording financial information
for Taylor Rinaldi, Graphic Artist. You will
complete the Computer Accounting Cycle for
November and December. Mr. Rinaldi’s
checkbook registers and bank statements will be
used as source documents.
At the end of December, which is also the end of
the fourth quarter, you will complete adjusting
entries for Mr. Rinaldi, print financial statements,
and close the fiscal year.
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Software Objectives, p. 311
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Restore data from Chapter 9. (The Chapter 9 October.ptb
back up was made on page 299. All activities in Chapter 9
must be completed before starting Chapter 10.
Change accounting periods.
Journalize and post transactions for Taylor Rinaldi, Graphic
Artist, for the months of November and December.
Complete account reconciliation.
Print a general ledger trial balance (unadjusted)
Journalize and post quarterly adjusting entries in the
General Journal.
Print financial statements.
Close the fiscal year.
Print a post-closing trial balance.
Make six backups using two blank, formatted disks: four
backups of Taylor Rinaldi, Graphic Artist data; one backup
of Exercise 10-1; and one backup of Exercise 10-2.
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Web Objectives, p. 311
Use your Internet browser to go to the
book’s website at www.mhhe.com/yacht2004
 Go to the Internet Activity link on the book’s
website. Then, select WEB EXERCISES
PART 2. Complete the second web exercise
in Part 2, Understanding Accounting Terms.
 Use a word processing program to write
summaries of the websites that you visited.

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PCA’s Computer
Accounting Cycle, p. 312
1.
Change accounting periods.
2.
Journalize entries.
Post entries to the general ledger.
Account reconciliation.
Print the general ledger trial balance
(unadjusted).
Journalize and post adjusting entries.
Print the general ledger trial balance (adjusted).
3.
4.
5.
6.
7.
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PCA’s Computer
Accounting Cycle (concluded), p. 312
8.
Print depreciation report.
Print the financial statements: Balance Sheet,
Income Statement, Statement of Retained
Earnings, Statement of Cash Flow, Statement of
Changes in Financial Position.
10. Close the fiscal year.
9.
11.
Interpret accounting information.
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Peachtree Tips
You must complete Chapter 9 before starting
Chapter 10.
To check that you have completed Chapter 9,
display Taylor Rinaldi’s general ledger trial balance.
Compare it to the one shown on page 295. This is
the trial balance at the end of Chapter 9.
If any of the account balances are incorrect on the
general ledger trial balance, follow the steps for
Editing Journal Transactions on page 294. Then,
reprint the trial balance.
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Peachtree Tips (continued)
If you do not get the correct year-to-date amounts on
your Statement of Cash Flow and Statement of
Changes in Financial position (pp. 338 and 339), you
may have set your chart of accounts beginning
balances in Chapter 9 incorrectly. Refer to pages 263267, Entering Chart of Accounts Beginning Balances in
Chapter 9. Taylor Rinaldi’s beginning balance sheet is
dated October 1, 2004 (p. 264). Since Peachtree posts
on the last day of the month (September 30), you must
set beginning balances for the preceding month—
September 1 through 30, 2004, pp. 261-262, steps 1
through 4 (pages 264-266).
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Backing Up Chapter 10
Part 2 starts in Chapter 9. In Chapters 9, 10 and Project 1, use six
blank, formatted disks to back up data.
Disk
3 of 6
4 of 6
.
Backup Name
A:\Chapter 10 November
KB
458KB
Pages
322-328
A:\Chapter 10 December UTB
461KB
329-330
A:\Chapter 10 December
465KB
339-340
A:\Chapter 10 EOY
465KB
346-347
A:\Exercise 10-1
449KB
354
A:\Exercise 10-2
449KB
355
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Chapter 10 Topics
Software & web objectives, p. 311
Getting started, pp. 312-313
a. Restoring data from Chapter 9, pp. 312-313
b. Changing accounting periods:
November 1-30, 2004, pp. 313-314
3. Checkbook register and bank statement:
November 2004, p. 315
a. Journalize and post November transactions
from check register, p. 315
b. Bank statement and account reconciliation,
pp. 316.
c. Cash Account Register, p. 317.
d. Account Reconciliation report, p. 318.
e. Printout of cash receipts journal and cash
disbursements journal, p. 319.
1.
2.
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Chapter 10 Topics, continued
4.
5.
6.
7.
f. November 30 General ledger trial balance, p. 320
g. November 30 Balance sheet, p. 321
h. November 30 Income statement, p. 322
Backing up November data, pp. 322-323
Data file statistics, pp. 323-324
Changing accounting periods, p. 325
Checkbook register and bank statement: December 2004, p.
325
a. Journalize and post December transactions in
the cash receipts and cash disbursements journals, pp.
325-326
b. Bank statement, p. 326
c. Cash Account Register, p. 327
d. Account Reconciliation report, p. 327
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Chapter 10 Topics, continued
7.
8.
9.
e. December 1-31 cash receipts journal, p. 328
f. December 1-31 cash disbursements journal, p. 328
g. December General ledger trial balance, p. 329
Backing up the unadjusted trial balance, pp. 329-330
End-of-quarter adjusting entries, pp. 330-333
a. December 31, 2004 general journal, p. 333
b. December 31 general ledger trial balance (adjusted), p. 334
c. December 31 balance sheet, p. 335
d. December 31 income statement, p. 336
e. December 31 statement of retained earnings, p. 337
f. December 31 statement of cash flow, p. 338
g. December 31 statement of changes in financial position, p.
339
Backing up December data, pp. 339-340
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Chapter 10 Topics (concluded)
10.
11.
12.
13.
14.
Closing the fiscal year, pp. 340-345
Printing the post-closing trial balance, pp. 345-346
Backing up year-end data, pp. 346-347
Internet Activity, p. 347
Summary and Review, pp. 347-348
a. Going to the Net, p. 348
b. True/Make True questions, pp. 349-351
c. Exercise 10-1, pp. 352-354
d. Exercise 10-2, pp. 355
e. Chapter 10 index, p. 356
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Change accounting periods, pp. 313-314

Click on Tasks, then
System. From the
System pull-down
menu. Select Change
Accounting Period.
Select 11-Nov 01, 2004
to Nov 30, 2004.
 Click on <OK>. Click on
<No> at the screen
prompt.
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Pages 315 through 320
Continue with the steps shown on pages 315 – 320.
 Compare your account reconciliation report to the
one shown on p. 318.
 Compare your cash receipts journal to the one shown
on p. 319.
 Compare your cash disbursements journal to the one
shown on p. 319.
 Compare your general journal to the one shown on p.
320.
 Print the general ledger trial balance, then compare it
to the one shown on p. 320.
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Pages 321 and 322
Print the balance sheet, then compare it
to the one shown on p. 321.
 Print the income statement, then
compare it to the one shown on p. 322.
 Follow the steps to back up November
data shown on pages 322-232.
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Data File Statistics, pp. 323-324
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From the menu bar, click on
Help, Customer Support and
Service, then select File
Statistics.
The File Statistics screen
shows the shortened name
for the company. If you used
your name in the company
name, your shortened name
will differ.
Click OK to close the Data
File Statistics screen.
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Pages 325 - 329
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Continue with the steps for changing the
accounting period shown on page 325.
Complete entries using the December check
register, pp. 325-326.
Complete account reconciliation, pages 326327.
Compare your cash receipts journal to the
one shown on p. 328.
Compare your cash disbursements journal to
the one shown on p. 329.
Print the general ledger trial balance, then
compare it to the one shown on p. 329.
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Backing up the Unadjusted Trial
Balance, pages 329-330
Follow steps 1 – 9 on pages 329-33- to
back up your unadjusted trial balance.
 Use Chapter 10 December UTB as the
file name. (UTB is an abbreviation of
unadjusted trial balance.)

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End-of-Quarter Adjusting Entries,
p. 330 - 333
Mr. Rinaldi’s accounting records are adjusted
at the end of December. Follow the steps on
pages 330–333 to record adjusting entries.
 Compare your December 31, 2004 general
journal to the one shown on p. 333.
 Compare your adjusted trial balance to the
one shown on p. 334.
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Financial Statements, pp. 335 - 339
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Compare your balance sheet to the one
shown on p. 335.
Compare your income statement to the one
shown on p. 336.
Compare your statement of retained earnings
to the one shown on p. 337.
Compare your statement of cash flow to the
one shown on p. 338.
Compare your statement of changes in
financial position to the one shown on p. 339.
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Backing up December data, pp. 339-340
Follow the steps on pp. 339-340 to back
up December data.
 Use Chapter 10 December as the back
up name.
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Closing the Fiscal Year, p. 340
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From the menu bar, select Tasks, System, Year-End
Wizard.

Click on <Next>.
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Closing the fiscal year, continued, p. 341
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The Year-End Wizard – Welcome window
appears.
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Click on <Next>.
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Closing the fiscal year, continued, p. 341
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The Close Options screen appears. Read the
information on this screen.
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Click on <Next>.
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Closing the fiscal year, continued, p. 343
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Read the information on the Print Fiscal Year-End
Reports screen.

Makes sure the boxes are unchecked. Click on
<Next>.
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Closing the fiscal year, continued,
pp. 342-343
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The Back Up Company Data window appears. You already
made a back up of your data but you may want to make
another one. Read the information on this screen. Click on
Back Up. The Back Up Company window appears.

Observe that the box next to Include company name in the
backup file name is checked. Click on the Back Up Now button.
Complete steps 10-13 on page 343.
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Closing the fiscal year, continued, p. 343
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The New Open Fiscal Years screen appears. Read
the information on this screen..
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Accept the default for Next Fiscal Year by clicking on
<Next>.
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Closing the fiscal year, continued, p. 344
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The Important – Confirm Year-End Close screen
appears. Read the information on this screen.
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Click on <Next>.
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Closing the fiscal year, continued p. 344
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The Begin Close-Year Process screen appears.
Read the information on this screen.
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Click on <Begin Close>.
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Closing the fiscal year, concluded, p. 345
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The Congratulations! screen appears. Read the
information on this screen.
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Click on <Finish>.
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Printing the Post-Closing
Trial Balance, pp. 345-346
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After the fiscal year is closed, a post-closing
trial balance is printed. Only permanent
accounts appear on the post-closing trial
balance. All temporary accounts (revenues
and expenses) have been closed. This
completes the computer accounting cycle.
 Follow steps 1 and 2 on page 345 to print the
post-closing trial balance.
 Compare your post-closing trial balance to
the one shown on page 346.
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Backing Up Year-End Data,
page 346-347
Follow steps 1 through 9 on pages 346347 to back up year-end data.
 The back up name is Chapter 10 EOY.
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Glossary of Terms
Chapter 10
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Unearned revenue, p. 333

Unearned revenue is a liability account
used to report advance collections from
customers or clients.
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Internet Activity, p. 347
1
2
Go to the book’s website at www.mhhe.com/yacht2004
3
Link to WEB EXERCISES PART 2.
4
Scroll down the screen to UNDERSTANDING
ACCOUNTING TERMS – Chapter 10. Read steps 1-5.
5
Follow the steps shown on the book’s website to complete this
Internet activity.
6
Use a word processing program to write a summary for each
website visited (maximum length of each summary: 75 words;
minimum length, 50 words.
In the Student Edition list, link to Internet Activities.
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Going to the Net, pp. 348-349
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Access the depreciation calculator at
www.fixedassetinfo.com/calculator.htm
This takes you to the Fixed AssetsInfo.com
depreciation calculator.
Complete steps 1 - 5 on pages 348-349.
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