Using Peachtree Complete 2012 for Accounting 6th

Edition Glenn Owen Solutions Manual

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Creating Supporting Reports to Help Make

Business Decisions
Chapters 1-5 are designed to help students get a top-down view of Peachtree as a user-oriented
accounting program. Students can be expected to work through these on their own. In Chapter 5,
students learn, in an interactive way, how to use Peachtree to answer questions about accounts
receivable, inventory, and accounts payable. They will be asked to create and print reports supporting
the financial statements including an aged receivables report, an inventory valuation report, and an
aged payables report.

CHAPTER 5 QUESTIONS

1. The Peachtree Business Status Center displays a variety of general business information,
including account balances, revenue figures, receivables and payables data, and action items.
2. The blue text indicates the ability to drill down for further information.
3. If you change the system date and accounting period the information displayed in the
Business Status Center changes as well.
4. By default the Customers Who Owe Money section displays customer balances sorted in
ascending order by due date
5. Click on the Amount Due column header to display customer balances sorted in ascending or
descending order by amount due.
6. There are three ways to access an Aged Receivables report:
a. Click Reports, then click Accounts Receivable, and then click Aged Receivables from the
report list.
b. Click Aged Receivables from the Aged Receivables section of the Business Status center
c. Use the Find a Report section of the Business Status center
7. Click the right arrow button in the lower left hand corner of the invoice in the box labeled
Customer Account as of a specific date.

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38 Chapter 5

8. If you don’t uncheck the box Include items with no quantity on hand in the Options section of
the Inventory Valuation report, the report will list all items whether any inventory exists or
not.
9. A detailed format Aged Payables report lists all purchase invoices creating the ending
balance for each vendor whereas the summary just lists the balance.
10. The types column of the Vendor Ledger are PJ (Purchases Journal) and CDJ (Cash
Disbursements Journal).
Chapter 5 39

CHAPTER 5 CENTURY KITCHENS ASSIGNMENTS

1. Answers to questions using the Business Status Center with system date 1/31/11 and Period 1:
a. $36,795.00
b. $4,950.00 due 30 days from 1/31/11.
c. $12,360.00
d. $1,000.00
e. $0
f. $0

2. Printed reports:
a.
40 Chapter 5

b.
Chapter 5 41

c.

d.

e.
42 Chapter 5

3. Answers to questions:
a. The largest outstanding balance is A. Monroe who owes $20,415 -- Invoice # 1019 for
$4,960 and Invoice # 1008 for $15,455.
b. Monroe's invoice #1008 is also the largest past due amount.
c. We owe Kraft Maid $12,100 from invoices KM98445 and KM89787.
d. We owe Ameron $3,850.00 on their invoice numbers AI09000 and AI029830.
e. We have 5 units of item 1012 which cost us $1,600.00.

CHAPTER 5 CASE PROBLEM 1: KELLY JENNINGS ADVERTISING

1. Answers to questions using the Business Status Center with system date 1/31/08 and Period 1:

a. $11,827.50
b. Paulson’s Nursery owed $1,950.00 due on 3/1/08.
c. Expenses totaled $15,530.76.
d. The company owed KCOY $2,500.00 due on 1/10/08.
e. $0
f. $6,184.00

2. Printed reports:
a.
Chapter 5 43

b.

c.
44 Chapter 5

3. Answers to questions:
a. The second largest receivable is $862.50 owed by Sally’s Fabrics from invoice 12.
b. The largest past due invoice is from Big 10 Sporting Goods for $325 which was due
2/22/08.
c. The smallest vendor payable is $26.00 due to Banks Office Supply.
d. The second largest past due vendor payable is $825.00 owed to Rex’s Film Supply and due
2/28/08.
e. The largest inventory item in stock is item 7010 (High Quality Film) which cost us $825.00.

CHAPTER 5 CASE PROBLEM 2: SIERRA MARINA

1. Answers to questions using the Business Status Center with system date 7/31/10 and Period 1:
a. The balance in accounts receivable is $18,903.
b. Microsoft owed $8,603 due 8/14/10.
c. Expenses were $81,337.27 for the period.
d. The company owed Exxon/Mobil $18,000 due 8/26/10.
e. None.
f. None.
2. Printed reports:
a.

b.

3. Answers to questions:
a. The Pontoon boat was rented for 10 days.
b. Invoice number 8 was used to bill Microsoft on 7/15/10.
Chapter 5 45

c. GL Account 60100 Advertising was used to categorize the bill from the Fresno Bee on
7/26/10.
d. Invoice number SCE234 was used by Southern CA Edison to bill the company on 7/30/10.

CHAPTER 5 CASE PROBLEM 3 JASON GALAS ATTORNEY AT LAW PC

1.
a. Accounts receivable balance as of 1/31/12 was $82,621.
b. Epic medical services owed $12,250 due 2/23/12.
c. Expenses for the period were $33,099.88.
d. The company owed Randol Leasing $5,600 due 3/30/12.
e. $15,000 in customer receivables were 31-60 days overdue.
f. None of the payables were 31-60 days overdue.
2.
a.
46 Chapter 5

b.

3.
a. 23 hours were billed on invoice 568.
b. Woot, Inc. was invoiced on 2/7/12 with invoice number 564.
c. The bill from TXU Energy on 2/29/12 was categorized to account 79000 (Utilities Expense).
d. The company was billed by Al Mar Maintenance Group using their invoice 654321.