Practice Set

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					                                        Practice Set

•   Follow these steps to activate your practice set.

       o   Go to to purchase your practice set and follow the
           instructions. The purchase price is $33.85. In addition to the practice set, this price also
           includes a copy of Peachtree Complete 2011 software (important: don’t purchase the
           software separately). Enter “Northridge” as the university, and CSUN will appear for you
           to select.
       o   You will receive an e-mail from Perdisco that contains instructions and a serial number
           needed for downloading your Peachtree software.
       o   After making your purchase and downloading the Peachtree software, you are given
           several unregistered uses of the software before it is required to be registered. Don’t
           wait too long before registering, or else you will lose access to your software. To register
           your Peachtree software, go to and do the following:
                   Click the ”sign up” link on the Register My Sage Product line at the bottom of the page.
                   Click the button “I am a new Sage Customer”.
                   Complete the requested data that have red asterisks. Perdisco recommends entering the following
                   company and address, not your address: Perdisco Pty Ltd, 10685-B Hazelhurst Drive, Suite 3965,
                   Houston, TX 77043, USA. Note that the address and street are on different lines. Go to the next
                   Click the “Product Registration” drop-down menu at the top.
                   Enter the serial number you received in the e-mail from Perdisco to register the Sage 50 Product.
                   You will receive the registration number [called the Activation Key] and the customer ID [called the
                   Client ID]. Enter this information the next time you use your Peachtree software.

       o   To begin your practice set, again go to and enter the
           user name and password you received in the e-mail from Perdisco. Click the practice set
           link and you’re ready to go. You are strongly encouraged to backup your Peachtree file.
           You keep your books on Peachtree (on your computer or the lab) and answer the
           questions online through Perdisco to earn your points. Some students have reported that
           the same file can’t be used both in the computer lab and a home computer or laptop.
           This has not been confirmed. But be aware that you might have a problem doing this.

•   Important: No two practice sets are the same. Every student will have a different practice set
    with a different solution. After each assignment is graded, you will be given the answers and be
    required to make corrections in Peachtree so that you don’t lose points for the same errors that
    carry over to future assignments. Remember, corrections are not made automatically for you.
    Part of your grade is based on how well you can audit your own work to discover why your
    answers are wrong and fix those mistakes. Therefore, I will not look at your work to explain how
    to find your errors or make the required corrections.

•   Attention Mac Users: Peachtree is not compatible with Macs. Either use Boot Camp for
    compatibility (partition your Mac if it came preinstalled with Boot Camp) or use the computer lab.

•   This practice set is worth 50 points (10%) of your ACCT 350 grade. Each practice set has
    419 points possible. The first 19 points missed will not count against you. They are free
    points. Example: If a student earns 360 points out of 419, the grade will be calculated as
    follows: 360/400 = 90%, and 90% x 50 = 45 points. If you lose any points due to your
    practice set being graded incorrectly, submit to me printouts of the assignments that
    were misgraded and the points lost. In other words, you received a green check mark to
    indicate that the answer is correct, but points were deducted. This is another reason to
    print each assignment after it has been graded before continuing.
•   Before beginning your practice set, you should familiarize yourself with the Student Companion
    & Helpful Hints at

•   Visit the Learning Center at for valuable help using

•   Using the Moodle Peachtree Discussion Page: A discussion page has been set up at You are being graded on this assignment and, therefore, I will not
    answer any question that affects the points you are trying to earn. I don’t object to students
    helping each other on the discussion page. But there is no guarantee about the advice you
    receive because each practice set is different. Also, think of the discussion page as going to
    your boss for help. In other words, don’t overuse it before you have exhausted all other
    possibilities. In accounting, you must learn to think for yourself and make a strong effort to solve
    problems on your own before seeking help. To track questions and answers on the discussion
    page, Moodle is configured to send you an e-mail of every post that is made by someone on the
    discussion page.

•   Warning: I’ll repeat it again, each practice set is different. The name of the company, the dates,
    the transactions, the dollar amounts, the quantities, and the names of vendors and customers
    that you see in the screen captures in the following pages and the practice sets that other
    students are completing will be different from those contained in your practice set. Therefore,
    when using the Moodle discussion page, asking questions or giving advice to other students
    using specific names, dates, quantities, or amounts might not have any meaning.

•   Very, Very Important: Use the correct dates given to you in the practice set (month and year)
    when setting up your company or entering transactions. Students have ended up with useless
    data because of using the wrong dates. Two different years or two different months cannot be
    combined later.

•   Two Chances! If your score is disappointing or you mess up the practice set beyond repair, you
    get a second chance (with a new company); but only after completing all assignments the first

•   Final Advice: Backup your file! Backup your file! Backup your file! Backup your file! Backup
    your file! Backup your file! Backup your file! Backup your file! Also, don’t forget to backup your

The following pages contain helpful information and hints that students
discovered while completing this practice set in the past. This information
might save you from unnecessarily losing some points.

    To record and post a transaction, click “Save” (below) after each journal entry.
The menu below is called the Navigation Bar.

With each assignment, the following will appear to show you your progress,
your grade, and information from previous pages.

                          After each assignment has been graded, it is recommended that
                          you make a printout of it in case you need to fix or find something
                          contained in a prior assignment or to know the content of the
                          transaction. Once you move to the next assignment, you will not
                          be able to access an old assignment. However, you “might” be
                          able to obtain old data using this menu.
1. Conversion to Peachtree (Week 2)
  •   Avoid making the following two critical mistakes when setting up your company:
        o When selecting the “business type”, be very careful to select the “Simplified types”
            option and “Retail Company” as the business type. Failure to do so will result in you
            using the wrong chart of accounts, and that will doom you before you even begin.

         o When selecting the “first period of your fiscal year”, be very careful to use January 2012
           (see below).

  •   The first fill-in question you will see (below) asks for the “Number of Accounts”. This means
      how many accounts of each “type”, not the account number.

            Account Type                 Number of Accounts
            Accounts Receivable
            Other Current Assets
2. Company Setup (Week 3)
  •   When setting up your chart of accounts and entering the beginning balances, you should use a
      minus sign for credit balances such as “Allowance for Doubtful Accounts” (below). Except for
      the bank reconciliation statement in Assignment 10, you won’t be required to use a minus sign
      for any other assignment.

  •   To set up your chart of accounts, access the “Chart of Accounts” window using the
      “Maintain” drop-down menu (below):
  •   When entering payroll details in the “User-Maintained Payroll Formulas” window (below),
      click “Next Step: Add this formula to Employee Defaults” before closing the window.


3. Practice Transaction (Week 4)
  •   When making a payment (writing a check), use “Write Check” unless the payment satisfies an
      account payable to a vendor. This can be accessed using either the “Banking” tab on the
      Navigation Bar or the “Tasks” drop-down menu. If paying a vendor to satisfy an account
      payable, use “Pay Bill” [see the Week 5 assignment]. To make the payment for the equipment,
      the following window will appear. Make entries where indicated.

                                                          Don’t use for
                                                          this payment

                                                       Cash purchase of equipment.

      •   Enter the name if the party is not a vendor. Don’t use the “Vendor ID” menu.
      •   If the party had been a vendor, you would have used the “Vendor ID” menu (with the name entered for you).
      •   Important: Select the account that should be debited where it is labeled “Expense account” even though it is
          not always an expense. This will most often be “Accounts Payable”. In this practice transaction, it is the
          account “Property and Equipment” (1500).
4. First Transaction (Week 4)
  •   If one of your vendors has the name “Supplies” in it, don’t assume you are purchasing
      supplies. It might be equipment. Therefore, read the transaction carefully.

5. Transactions: Early May (Week 5)
  •   The loan obtained from the uncle is a receipt of cash. However, it should be recorded in the
      same window as cash received from a customer that satisfies an account receivable. There
      are two ways to access the receipt of cash. One way is to use the “Task” drop-down menu and
      “Receipts” (below).

      The other way is to click “Receive Money” using the “Customers & Sales” tab of the
      Navigation Bar (see the next page).

                                                    (See next page)
Because this receipt isn’t from a customer, you only need to make the entries identified below
(circled in red). The “Reference” box refers to the uncle’s check number. Ignore the “Deposit
Ticket ID” box until later in the practice set. You will also be required to enter the name of the
uncle. Note to Computer Lab Users: If you are working in the computer lab, the “GL Account”
column might not appear. If it doesn’t, do the following: Access the “Edit” drop-down menu,
select “Global Options”, and under “Hide General Ledger Accounts”, uncheck Accounts
Receivable (in parenthesis it contains the word “receipts”). Exit this window, and the “GL
Account” column will appear when you access it again.


                     Enter amount.

    Select “Short Term Debt”
     (account number 2600)
•   For purchases, use “Purchases/Receive Inventory”, which can be found in the “Tasks” drop-
    down menu (below). Do not use “Purchase Orders” unless it is only a purchase order and not
    yet a purchase.

•   To pay a vendor (i.e., satisfy an account payable), use “Pay Bill” (below), not “Write Check”.

                                                          (See next page)
    After you access the correct vendor and invoice, enter the required information (below). Make
    sure you check the “Pay” box. The “Discount account” box is mislabeled. It really represents
    the account you are debiting.

•   The sales transaction is part credit and part cash. Use the “Customers & Sales” menu (below)
    and click “Sales Invoices” for a list of choices. Select “New Sales Invoice” from the list.

                                                         (See next page)
      Make similar entries to the ones below

                             Click here and the “Receive
                             Payment” window will appear.

      In the “Receive Payment” window (not shown, but click the “Amount paid at sale” box above
      to access it), the “Reference” box refers to the check number that was received. Ignore the
      “Deposit Ticket ID” box until later in the practice set.

6. First Trial Balance (Week 6)
  •   To obtain the trial balance, use the “Reports & Forms” drop-down menu. Select “General
      Ledger” and then “General Ledger Trial Balance.”
7. Finding and Fixing Errors (Week 7)
  •   You are asked to correct a purchase that is similar to the one below. Change the Vendor ID,
      add the additional purchase, and click “Save”. Some students have also been successful by
      canceling the first transaction and entering the correct one. For a good example, go to
      “Troubleshooting” and “Editing Using 2011” at

8. Transactions: Mid May (Week 8)
  •   For purchase transactions, access the “Purchases/Receive Inventory” window, which can be
      found in the “Tasks” drop-down menu. [See second bullet in the Week 5 assignment (above)].
  •   For the purchase order transaction, click “Purchase Orders” (below) and select “New
      Purchase Order” from the list of choices.
9. Transactions: Late May (Week 10)
  •   The sales transaction requires you to do two things: Invoice a sales order and add additional
      units to the sale that weren’t originally on the sales order. To do this, go to “Sales Invoices”
      [see the last bullet in the Week 5 assignment]. Select “View and Edit Sales Invoices” from
      the list of choices. Double-click on the correct vendor to access the original sales order
      (below). Use the “Apply to Sales” tab (below) and enter the additional sale.
10. Bank Reconciliation (Week 11)
  •   Access “Reconcile Accounts” (below) to prepare the bank reconciliation statement.

  •   Compare the “Account Reconciliation” window (below) to both the bank statement and the
      prior month bank reconciliation statement provided to you with your assignment data. On the
      “Account Reconciliation” window, place a check mark next to each check and deposit that is
      listed on the bank statement. These items have cleared the bank and, therefore, should not
      appear on the bank reconciliation statement. To obtain your bank reconciliation statement,
      access “Reports” (below) and select “Account Reconciliation” (this is a different “Account
      Reconciliation” link). Peachtree automatically records the interest and service charge (below)
      and doesn’t include them in the bank reconciliation statement. This is unlike what you will see
      in a textbook-illustrated bank reconciliation statement. Both approaches are acceptable.
  •   When submitting your data for each “outstanding check”, enter the date, check number, and
      amount. For the amount of any outstanding check, use a minus sign. If you don’t know how to
      prepare a bank reconciliation, see the “Review Primer” on the class web page or the “Banking”
      link in the Peachtree Learning Center at

11. Adjusting Journal Entries (Week 12)
  •   You are instructed to generate the “adjusted trial balance” that shows all account balances.
      Notice that “all” is in bold for emphasis. Therefore, you should include each account that is
      listed on your trial balance, even if it has a zero balance. If there is no balance, enter a zero. In
      other words, for each blank line, there must be an account name that is entered.

  •   For your adjusting journal entries, use the “General Journal” (below).
12. Inventory and Aging of Receivables/Payables (Week 13)
  •   An aging of accounts payable is reported in the “Vendors & Purchases” window (below). An
      aging of accounts receivable is reported in the “Customers & Sales” window (not shown

      To be certain that these balances are correct, use the “Report & Forms” drop-down menu
      (below) to create aging schedules for both your receivables and payables. If the balances
      aren’t the same, it’s probably because you failed to use the same dates to generate the report.
      The aging schedule for accounts payable will look like the following.

13. Financial Statements (Week 14)
  •   To print the financial statements, use the “Reports & Forms” drop-down menu (below).

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