Solution Manual for Computer Accounting with Peachtree by

Sage Complete Accounting 2012 16th Edition by Yacht ISBN

0077634020 9780077634025
Full link download:
Solution Manual:
https://testbankpack.com/p/solution-manual-for-computer-accounting-with-peachtree-by-sage-
complete-accounting-2012-16th-edition-by-yacht-isbn-0077634020-9780077634025/

Test Bank:
https://testbankpack.com/p/test-bank-for-computer-accounting-with-peachtree-by-sage-complete-
accounting-2012-16th-edition-by-yacht-isbn-0077634020-9780077634025/

CHAPTER 2
VENDORS

Chapter 2 introduces students to the basic way that PCA works with
vendor transactions. The first thing the students do is select

from the Navigation Bar to go to the Vendors &

Purchases Navigation Center. After recording a purchase order, students
record a vendor invoice using the Purchases/Receive Inventory window.
The Purchases/Receive Inventory window is also the Purchases Journal.
The Apply to Purchases tab is the default. The lower half of the window
shows fields for Quantity, Item (inventory items), Description, GL Account,
Unit Price, Amount, and Job. The default for the A/P Account is 20000,
Accounts Payable. The Purchases/Receive Inventory window looks like a
purchase order. Similar to other PCA windows, the icon bar appears at the
top of the window.

When Bellwether Garden Supply orders and receives inventory from

vendors, Account No. 12000, Inventory, is debited. Accounts Payable and
the vendor account are credited. Vendors offer Bellwether a purchase
discount for invoices paid within the discount period. The program
defaults to 2% 10, Net 30 Days for purchase discounts.

Peachtree is a double-entry accounting system. There is a selection in

Options; Global that allows general ledger accounts to be hidden. This is
called Accounting Behind the Screens. The PCA windows in the
textbook show the general ledger accounts. To check the Accounting
Behind the Screens settings, do the following:
 1. From the menu bar, click Options, then Global. The Accounting tab
should be selected. If necessary, click on the radio button next to
Manual to select it. The Number of decimal places should be 2.

32 - IMK Chapter 2

2. The boxes in the section Hide General Ledger Accounts must be

unchecked. (If necessary, click on the boxes to uncheck them.)

3. Observe that two boxes

need to be checked in the
Other Options section:
Warn if a record was
changed but not saved and
Recalculate cash balance automatically in Receipts, Payments, and
Payroll Entry. Make sure both of these Other Options boxes are
checked.

4. Click on the General tab. Make sure the Line Item Entry Display has 2
Line selected; and that the Smart Data Entry area has three boxes
checked.

5. Click .

LEARNING OBJECTIVES

1. Restore data from Exercise 1-2. (This backup was made on textbook
page 51.)
2. Enter a purchase order.

3. Apply receipt of inventory to existing purchase order.

The McGraw-Hill Companies, Inc., Computer Accounting with Peachtree by Sage Complete Accounting 2012, 16e
 33 - IMK Chapter 2 Vendors 33 - IMK

4. Enter and post a vendor invoice in the Purchases\Receive Inventory

window.

5. Go to the Payments window to pay a vendor.

6. Print a check in payment of the vendor invoice.

7. Add a Terms column to the Vendor Ledgers report.

8. Analyze payments and vendor credit memos.

9. Export the Vendor List and Vendor Ledgers to Excel.

10. Save the Vendor List and Vendor Ledgers as PDF files.

11. Make two backups, save two Excel files, and save three PDF files.1
PCA TIPS, CHAPTER 2

 If the Purchase Orders, Purchases/Receive Inventory, Payments, or

Sales/Invoicing windows do not show the general ledger accounts for
the accounts payable, accounts receivable, and GL account fields,
your students need to check their global settings. To show general
ledger accounts on the Payments window and Purchases/Receive
Inventory window, see textbook pages 18–19 (Chapter 1, Setting
Global Options) and textbook pages 62–63 (Chapter 2). The Vendor
windows (Purchase Orders, Purchases/Receive Inventory, and
Payments) and Customer windows (Sales Orders, Sales/Invoicing and
Receipts) in Computer Accounting with Peachtree by Sage Complete
Accounting 2012, 16th Edition, show the accounts payable, accounts
 receivable, and G/L account fields.
 Peachtree includes the special journals; for example, the Payments
window is the Cash Disbursements Journal; the
 Purchases/Receive Inventory window is the Purchases Journal.
 Once global options are set for one company, they are in effect for all
Peachtree companies. In Chapter 3, Customer Transactions, if the
Receipts or Sales/Invoicing window does not show a G/L account field,
students should check that the global options are set correctly. 

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
34 - IMK Chapter 2 Vendors 34 - IMK

1
Refer to the chart on page 2 - IMK for the size of backups and saved Excel and PDF files.

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
35 - IMK Chapter 2 Vendors 35 - IMK

 In Windows 7 and Vista, the computer owner is identified when files

are backed up or saved. To see which user saved the file, right-click
on the Start button, left-click Explore. Go to the location of the backup
file; right-click on the filename, left-click Properties. The Security tab
shows the Group or user names; the Details tab shows the Owner and
Computer name. The time and date is also shown. The same steps
can be used to check .ptb files (extension used for Peachtree
backups); Excel files (.xlsx and .xls extensions); and Adobe files (.pdf
extensions), and Word files (.docx and .doc extensions). To verify
student files, you may want to look at the file properties.

LECTURE OUTLINE FOR CHAPTER 2: VENDOR TRANSACTIONS

A. Learning Objectives, page 57 (page numbers refer to the

student textbook).

B. Getting Started, page 58

C. Restoring Data from Exercise 1-2, page 59

D. Accounts Payable System, pages 60-61

1. The Purchase Order Window, page 62

2. Changing Global Settings for Accounting Behind the
Screens (and recording a purchase order), pages 62-67
3. Printing Purchase Orders, pages 67-69
4. Receive Inventory from a Purchase Order, pages 69-70
5. Apply to Purchase Order, pages 70-72
6. The Purchases\Receive Inventory Window, pages 72-73
7. Adding a New Vendor, pages 73-76
8. Entering a Vendor Invoice, pages 76-77
9. Editing a Journal Entry, page 78
10. Posting a Purchase Transaction, pages 78-79

E. Payments to Vendors, pages 79-81

F. Printing Checks, pages 81-84

G. Displaying the Vendor Ledgers, pages 84-85

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
36 - IMK Chapter 2 Vendors 36 - IMK

H. Vendor Credit Memos, pages 85-87

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
37 - IMK Chapter 2 Vendors 37 - IMK

I. Backing Up Chapter 2 Data, page 88

J. Export Two Peachtree Reports to Excel, pages 88-90

K. Save Vendor List and Vendor Ledgers as PDF Files, page 91

L. Summary and Review, page 92

1. Going to the Net, page 92

2. Multiple Choice Questions, pages 92-94
3. Exercise 2-1, pages 95-96
4. Exercise 2-2, pages 96-97
5. Analysis question, page 98
6. Assessment rubric, page 98
7. Chapter 2 Index, page 99

ANSWERS TO GOING TO THE NET2

Access information about the Internet Corporation for Assigned Names

and Numbers (ICANN) at http://www.icann.org/en/registries/about.htm.

1. What is a TLD and gTLD?

The right-most label in a domain name (for example, www.icann.org) is

referred to as its "top-level domain" (TLD). TLDs with two letters have
been established for over 240 countries and external territories and are
referred to as "country-code" TLDs or "ccTLDs."

TLDs with three or more characters are referred to as "generic" TLDs,

or "gTLDs."

The responsibility for operating each gTLD (including maintaining a

registry of the domain names within the gTLD) is delegated to a
particular organization. These organizations are referred to as
"registry operators" or "sponsors."

2
The textbook website is www.mhhe.com/yacht2012; link to Textbook Updates. Check this
link for updated Going to the Net exercises.

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
38 - IMK Chapter 2 Vendors 38 - IMK

2. What gTLDs are operated under contract with ICANN?

.aero, .biz, .cat, .com, .coop, .info, .jobs, .mobi, .museum, .name, .net,
.org, .pro, and .travel; .gov and .edu are also available.

3. What types of gTLDs are there? Briefly explain sponsored and

unsponsored gTLDs.

Generally speaking, an unsponsored gTLD Registry operates under

policies established by the global Internet community directly through
the ICANN process. Unsponsored gTLDs include .biz, .com, .info,
.name, .net, .org, and .pro.

A sponsored gTLD (sometimes called an sTLD) is a specialized gTLD

that has a sponsor representing a specific community that is served
by the gTLD. The sponsor carries out delegated policy-formulation
responsibilities over many matters concerning the gTLD. Sponsored
gTLDs include .aero, .cat, .coop, .jobs, .mobi, .museum, and .travel.
Entities wishing to register domain names in a sponsored gTLD are
required to meet certain eligibility requirements.

ANSWERS TO MULTIPLE-CHOICE QUESTIONS, Chapter 2

1. a (The place specified for the USB drive)

2. c (Purchase discounts)
3. c (a or b)
4. b (So that others working in your company can determine a
vendor code from the company name.)
5. d (To request items from a vendor)
6. d (Is case sensitive)
7. a (Maintain Vendors)
8. a (Drill down)
9. d (debit, Materials Cost; credit, Accounts
Payable/Armstrong's Landscaping)
10. b (Credits & Returns; New Vendor Credit Memo)

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
39 - IMK Chapter 2 Vendors 39 - IMK

SOLUTION TO EXERCISE 2-1 (3)3

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
40 - IMK Chapter 2 Vendors 40 - IMK

3
The number in parentheses refers to the instruction number in the textbook.

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
41 - IMK Chapter 2 Vendors 41 - IMK

SOLUTION TO EXERCISE 2-1 (4)

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
42 - IMK Chapter 2 Vendors 42 - IMK

SOLUTION TO EXERCISE 2-2 (1)

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
43 - IMK Chapter 2 Vendors 43 - IMK

SOLUTION TO EXERCISE 2-2 (3)

The McGraw-Hill Companies,

The McGraw-Hill Inc., Computer
Companies, Accounting
Inc., Computer with Peachtree
Accounting by Sage
with Peachtree Complete
by Sage Accounting
Complete 2012,2012,
Accounting 16e 16e
44 - IMK Chapter 2 Vendors 44 - IMK

SOLUTION TO EXERCISE 2-2 (4)

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
45 - IMK Chapter 2 Vendors 45 - IMK

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
46 - IMK Chapter 2 Vendors 46 - IMK

SOLUTION TO EXERCISE 2-2 (4) (Concluded)

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
47 - IMK Chapter 2 Vendors 47 - IMK

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
48 - IMK Chapter 2 Vendors 48 - IMK

EXPORT TWO PEACHTREE REPORTS TO EXCEL

Textbook pages 88-90 shows detailed steps for exporting two Peachtree
reports to one Excel file. When exporting more than one report to Excel,
select Add a new worksheet to an existing Microsoft Excel workbook on
Peachtree’s Copy Report to Excel window. Then, browse to the location
of the appropriate file. The Copy Report to Excel window is shown below
step 8 on textbook page 90.

In Chapter 2, the two Peachtree reports, The Vendor List and Vendors
Ledgers, are exported to one Excel file. The file name is Exercise 2-
2_Vendor List and Ledgers.xlsx. (Excel 2003 files end in the
extension, .xls.)

VENDOR LEDGERS SAVED AS A PDF FILE

In Exercise 2-2, students save the Vendor Ledgers as a PDF file.

SOLUTION FILES: .ptb, .xlsx, .pdf

The password-protected Instructor Edition website at

www.mhhe.com/yacht2012 includes solutions saved in the
following formats:

1. Solution files link: Peachtree backups. Chapter and exercise

backups -- .ptb extensions.

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
49 - IMK Chapter 2 Vendors 49 - IMK

2. End of Chapter Exercises link: Exercises saved as Adobe

Acrobat files – .pdf extensions.
3. Excel Solutions link – Chapter and exercise files saved in Excel –
.xlsx extensions.

The solution files, in .ptb, .pdf, and .xlsx formats, are also included on
the Instructor’s Resource CD (ISBN No. 0077410386).

The chart below shows the Chapter 2 solution files.

Peachtree Backup (.ptb) Page

Chapter Excel (.xlsx) and Adobe (.pdf) Kilobytes4 Nos.
2 Chapter 2.ptb 3,435 KB 88
Chapter 2_Vendor List and Ledgers.xlsx 21 KB 88-90
Chapter 2_Vendor List.pdf 8 KB 91
Chapter 2_Vendor Ledgers.pdf 14 KB 91
Exercise 2-2.ptb 3,460 KB 97
Exercise 2-2_Vendor List and 21 KB 97
Ledgers.xlsx
Exercise 2-2_Vendor Ledgers.pdf 47 KB 97

ONLINE LEARNING CENTER: QA Templates and Assessment Rubric

For the end-of-chapter questions, students can go online to

www.mhhe.com/yacht2012; Student Edition, then select Chapter 2. The
QA Templates link includes the end-of-chapter Multiple Choice questions
and the Analysis Question.

The Instructor Edition site includes a link to QA Templates Answers. To

obtain a username and password for the Instructor Edition, contact your
McGraw-Hill sales representative. To find your sales representative, go
online to http://catalogs.mhhe.com/mhhe/findRep.do. The Instructor
Edition also includes a link to Assessment Rubric Answers.

There is also a link to the chapter's assessment rubric at

www.mhhe.com/yacht2012. Link to the Student Edition, select Chapter
2, then Assessment Rubric. The Instructor Edition includes the
Assessment Rubric Answers.

4
Backup sizes may differ.

The McGraw-Hill
The McGraw-Hill
Companies,
Companies,
Inc., Computer
Inc., Computer
Accounting
Accounting
with Peachtree
with Peachtree
by Sage
by Sage
Complete
Complete
Accounting
Accounting
2012,2012,
16e 16e
50 - IMK Chapter 2 Vendors 50 - IMK

ANSWER TO THE ASSESSMENT RUBRIC

Navigation Journal
Date Transaction Center/Module Task window Dr./Cr.
3/15/12 Invoice No. H788 Vendors & Purchases/Receive Purchases
was received from Purchases; Inventory Journal
Post Office Enter Bill, New
Supplies for the Bill Dr. 71000, Office
purchase of five Expense, $54.75
boxes of letter-size Accounts
file folders, $10.95 Payable Cr. A/P, Post
each. Office Supplies,
$54.75
3/18/12 Pay Post Office Vendors & Payments Cash
Supplies for Purchases; Disbursements
Invoice H788, Pay Bills, Pay Journal
$53.65 Bill
Dr. 20000, A/P,
Accounts Post Office
Payable Supplies, $54.75

Cr. 89500
Discounts Taken,
$1.10

Cr. 10200,
Regular Checking
Account, $53.65

ANSWER TO THE ANALYSIS QUESTION

With the Vendors & Payables Navigation Center serving as the

starting point to perform tasks related to Accounts Payable, list five
Vendors & Purchases Tasks.

Briefly describe the Vendor Management tab.

ANSWER:

The McGraw-Hill
The McGraw-Hill Companies,
Companies, Inc., Computer
Inc., Computer Accounting
Accounting with Peachtree
with Peachtree by Sage
by Sage Complete
Complete Accounting
Accounting 2012,2012,
16e 16e
51 - IMK Chapter 2 Vendors 51 - IMK

The Vendors & Purchases Navigation Center displays information

and access points related to the company’s vendors and purchases.

The McGraw-Hill
The McGraw-Hill Companies,
Companies, Inc., Computer
Inc., Computer Accounting
Accounting with Peachtree
with Peachtree by Sage
by Sage Complete
Complete Accounting
Accounting 2012,2012,
16e 16e
52 - IMK Chapter 2 Vendors 52 - IMK

1) The Vendors & Purchases Tasks provides a graphic representation

of the flow of vendor-related tasks, as well as access to those
tasks. It also provides access to windows where you enter/maintain
vendor information.

The Vendors & Purchases workflow diagram is shown below.

2) A summary of vendor information; for example, link to

View Detailed List.
3) Access to vendor reports. For example, a link to View All Vendor &
Purchases Reports.
4) An overview of the company’s aged payables. You can also link
or drill down to various areas.
5) Peachtree solutions include drill down to Checks & Forms and
Online Bill Pay.

On the Vendor Management tab, you can see lists of information

regarding transactions and history for a particular vendor, including

The McGraw-Hill
The McGraw-Hill Companies,
Companies, Inc., Computer
Inc., Computer Accounting
Accounting with Peachtree
with Peachtree by Sage
by Sage Complete
Complete Accounting
Accounting 2012,2012,
16e 16e
53 - IMK Chapter 2 Vendors 53 - IMK

purchase orders, purchases, and payments. This is where you want to

go to see information about a particular vendor.

The McGraw-Hill
The McGraw-Hill Companies,
Companies, Inc., Computer
Inc., Computer Accounting
Accounting with Peachtree
with Peachtree by Sage
by Sage Complete
Complete Accounting
Accounting 2012,2012,
16e 16e