1. Chapter 2: Vendor Transactions

2. ©The McGraw-Hill Companies, Inc., 2004 2 of 29 Vendor Transactions In Chapter 2, you learn about Bellwether Garden Supply’s vendors. In this chapter, you learn how Peachtree handles accounts payable transactions with vendors. When Bellwether Garden Supply orders inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account is credited.

3. ©The McGraw-Hill Companies, Inc., 2004 3 of 29 Software Objectives, p. 49 Restore data from Exercise 1-2. (This back up was made on p. 46.) Enter a purchase order. Enter and post a vendor invoice in the “Purchases/Receive Inventory” window. Go to the “Payments” window to pay a vendor. Print a check in payment of the vendor invoice. Analyze vendor payments. Make two backups: one blank, formatted disk for the Chapter 2 backup; one blank, formatted disk for the Exercise 2-2 backup.

4. ©The McGraw-Hill Companies, Inc., 2004 4 of 29 Web Objectives, p. 49 Use your Internet browser to go to the book’s website at www.mhhe.com/business/accounting/yacht2003 www.mhhe.com/business/accounting/yacht2003 Complete the Internet activity for Accounting Students. Use a word processing program to write a summary about the website(s) that you visited.

5. ©The McGraw-Hill Companies, Inc., 2004 5 of 29 Peachtree Tips In Chapter 1 on page 46, you backed up (saved) Exercise 1-2. In order to begin where you left off, you must Restore your data from Exercise 1-2. Restoring will allow you to start where you left off at the end of Chapter 1. The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements will reflect within chapter activities and end-of-chapter exercises.

6. ©The McGraw-Hill Companies, Inc., 2004 6 of 29 Peachtree Tips Change global settings to show general ledger accounts, pp. 51-52, (Options, Global). If the boxes are checked, then general ledger accounts (“GL Account” column) are hidden on the Tasks screens. Make sure the boxes are unchecked so that the general ledger accounts will show on the Tasks screens.

7. ©The McGraw-Hill Companies, Inc., 2004 7 of 29 Peachtree Tips Peachtree defaults to hiding the general ledger accounts. This is called “Accounting Behind the Screens.” (p. 51) The screen illustrations in the book show the general ledger accounts. Once you set global options for one company, they are in effect for all Peachtree companies.

8. ©The McGraw-Hill Companies, Inc., 2004 8 of 29 Backing Up Chapter 2 Use one blank, formatted disk to back up Chapter 2 on page 75. Use another blank, formatted disk to back up Exercise 2-2 on page 81. ChapterDisks Backup Name KB Pg Nos. 2 4 of 18 a:\Chapter 2.ptb 84975 5 of 18 a:\Exercise 2- 2.ptb 85081

9. ©The McGraw-Hill Companies, Inc., 2004 9 of 29 Chapter 2 Topics 1. Software & web objectives, p. 49 2. Getting Started, p. 50 3. Restoring data from Chapter 1, pp. 50-51 4. Accounts payable tasks, p. 51 a. The purchase order window, p. 51 b. Changing global settings for “Accounting Behind the Screens,” pp. 51-52 c. Printing purchase orders, pp. 56-57 d. The Purchases/Receive Inventory window, pp. 58-59 e. Adding a new vendor, pp. 59-62 f. Entering a vendor invoice, pp. 63-64 g. Posting a purchase transaction, 65

10. ©The McGraw-Hill Companies, Inc., 2004 10 of 29 Chapter 2 Topics continued 5. Payments to vendors, pp. 65-68 6. Printing checks, pp. 68-71 7. Displaying the vendor ledgers, pp. 71-72 8. Vendor credit memos, pp. 72-74 9. Backing Up Chapter 2 data, p. 75 10. Internet activity, p. 75 11. Summary & Review, p. 76 a. Going to the net, p. 76 b.Multiple choice questions, pp. 77-79 c. Exercise 2-1, pp. 79-80 d. Exercise 2-2, pp. 80-81 e. Chapter 2 index, p. 82

11. ©The McGraw-Hill Companies, Inc., 2004 11 of 29 Changing Global Setting for “Accounting Behind the Screens, pp. 51-52 From the menu bar, click on Options, Global. The boxes in the section “Hide General Ledger Accounts” must be unchecked, p. 52.

12. ©The McGraw-Hill Companies, Inc., 2004 12 of 29 “Purchase Orders” window, p. 52 From the menu bar, click on Tasks, then select Purchase Orders.

13. ©The McGraw-Hill Companies, Inc., 2004 13 of 29 Vendor drop-down list, p. 53 Select “AARON-01,” Aaron and Son Contractors, as the vendor. (This is step 5 on page 53.) Continue with steps 6, 7, 8, and 9 on pages 53 and 54.

14. ©The McGraw-Hill Companies, Inc., 2004 14 of 29 Completed Purchase Order, p. 55 After completing steps 10, 11, 12, and 13 on pages 54 and 55, the completed “Purchase Orders” window is shown.

15. ©The McGraw-Hill Companies, Inc., 2004 15 of 29 “Accounting Behind the Screens,” Purchase Order Journal, p. 56 From the completed “Purchase Orders” window, click on the “Journal” icon.

16. ©The McGraw-Hill Companies, Inc., 2004 16 of 29 Purchases/Receive Inventory, p. 58 From the menu bar, select Tasks, then Purchases/Receive Inventory.

17. ©The McGraw-Hill Companies, Inc., 2004 17 of 29 Maintain Vendors, p. 59 The “Maintain Vendors” window appears when you press the plus key in the Vendor ID field.

18. ©The McGraw-Hill Companies, Inc., 2004 18 of 29 Completed “Purchases/Receive Inventory” window, p. 64 The completed “Purchases/Receive Inventory” screen is shown on p. 64.

19. ©The McGraw-Hill Companies, Inc., 2004 19 of 29 “Payments” window, p. 66 From the menu bar, select Tasks, then Payments.

20. ©The McGraw-Hill Companies, Inc., 2004 20 of 29 Completed “Payments” window, p. 67 The completed “Payments” window is shown on page 67.

21. ©The McGraw-Hill Companies, Inc., 2004 21 of 29 Select a Report, p. 69 From the menu bar, select Reports, then Accounts Payable. Scroll down the Report list. Double-click on the“Disbursement Checks” folder to open it. Then, click on “AP Preprint 1 Stub.”

22. ©The McGraw-Hill Companies, Inc., 2004 22 of 29 Vendor Ledger, p. 72 From the menu bar, select Reports, Accounts Payable, highlight Vendor Ledgers, then select

23. Chapter 2 Glossary of Terms

24. ©The McGraw-Hill Companies, Inc., 2004 24 of 29 Purchase discount, p. 49 Cash discounts from vendors in return for early payment of an invoice, for example, 2% 10 days, net 30.

25. ©The McGraw-Hill Companies, Inc., 2004 25 of 29 Purchase orders, p. 51 Purchase orders are used to place an order from a vendor.

26. ©The McGraw-Hill Companies, Inc., 2004 26 of 29 Coding system, p. 59 A combination of letters and numbers that are used to identify customers and vendors. The coding system is case sensitive, for example AAA-01 is not the same as aaa-01.

27. ©The McGraw-Hill Companies, Inc., 2004 27 of 29 Case sensitive, p. 60 Refers to the use of lowercase and uppercase letters. When coding a customer or vendor number, you must use either a capital or lowercase letter. For example, AAA-01 is not the same as aaa-01.

28. ©The McGraw-Hill Companies, Inc., 2004 28 of 29 Chapter 2, Internet Activity, p. 75 1. Go to the book’s website at www.mhhe.com/yacht2003 www.mhhe.com/yacht2003 2. In the “Student Center” list, link to Internet Activities. 3. Link to WEB EXERCISES PART 1. 4. Scroll down the screen to “ACCOUNTING STUDENTS – Chapter 2.” Complete steps 1-3. 5. Using a word processing program, write a summary about the sites you selected. Include the website address in your summary (maximum length, 75 words; minimum length, 50 words.

29. ©The McGraw-Hill Companies, Inc., 2004 29 of 29 Going to the Net, p. 76 Access information about domain name statistics at www.zooknic.com/Domains/counts.html www.zooknic.com/Domains/counts.html 1. What is the number of domain names worldwide? 2. How many.com names are there? 3. List the extensions that are used with website domain names.