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Computerized Accounting With
PEACHTREE 2010
COMPREHENSIVE PROBLEM ONE
Chapters 1 through 7
Tracy Madding is an attorney opening her own office on March 1, 2010. She operates her business as a sole proprietorship. The office is located at 1345 Main Street, Lodi, CA 95240. The owner of the building, Apex Business Management, signed Tracy to a one-year lease for $800 per month. The IRS issued her an employer identification number of 15-6789545. Tracy called the local telephone company, Pacific Bell, and arranged for two lines: telephone 209-555-9899; fax 209-555-3211.
Tracy spoke with an accountant, and together they decided that Tracy should use the accrual method of accounting because she may, in the future, give credit terms to her clients. Tracy’s business will use real time posting, an accounting period of 12 months, and a fiscal year beginning January 2010.
Activities for March 2010 1. Set up the company with the name of Tracy Madding, Attorney-at-Law (Your Last Name). 2. Create a chart of accounts using the information below:
Assets:
Account ID Description Account Type 101 Cash Cash 104 Accounts Receivable Accounts Receivable 106 Office Supplies Other Current Assets 108 Prepaid Insurance Other Current Assets 110 Prepaid Rent Other Current Assets 115 Computer Equipment Fixed Assets 115.5 Accum. Depr.-Computer Eq. Accumulated Depreciation 120 Law Library Fixed Assets 120.5 Accum. Depr.-Law Library Accumulated Depreciation 125 Furniture & Fixtures Fixed Assets 125.5 Accum. Depr.-Furniture & Fxt. Accumulated Depreciation
Liabilities:
Account ID Description Account Type 211 Accounts Payable Accounts Payable 213 Notes Payable Other Current Liabilities 215 Unearned Revenue Other Current Liabilities 217 Salaries Payable Other Current Liabilities
Owner’s Equity:
Account ID Description Account Type 311 Tracy Madding, Capital Equity–doesn’t close 312 Tracy Madding, Retained Earn.
PEACHTREE 2010
COMPREHENSIVE PROBLEM ONE
Chapters 1 through 7
Tracy Madding is an attorney opening her own office on March 1, 2010. She operates her business as a sole proprietorship. The office is located at 1345 Main Street, Lodi, CA 95240. The owner of the building, Apex Business Management, signed Tracy to a one-year lease for $800 per month. The IRS issued her an employer identification number of 15-6789545. Tracy called the local telephone company, Pacific Bell, and arranged for two lines: telephone 209-555-9899; fax 209-555-3211.
Tracy spoke with an accountant, and together they decided that Tracy should use the accrual method of accounting because she may, in the future, give credit terms to her clients. Tracy’s business will use real time posting, an accounting period of 12 months, and a fiscal year beginning January 2010.
Activities for March 2010 1. Set up the company with the name of Tracy Madding, Attorney-at-Law (Your Last Name). 2. Create a chart of accounts using the information below:
Assets:
Account ID Description Account Type 101 Cash Cash 104 Accounts Receivable Accounts Receivable 106 Office Supplies Other Current Assets 108 Prepaid Insurance Other Current Assets 110 Prepaid Rent Other Current Assets 115 Computer Equipment Fixed Assets 115.5 Accum. Depr.-Computer Eq. Accumulated Depreciation 120 Law Library Fixed Assets 120.5 Accum. Depr.-Law Library Accumulated Depreciation 125 Furniture & Fixtures Fixed Assets 125.5 Accum. Depr.-Furniture & Fxt. Accumulated Depreciation
Liabilities:
Account ID Description Account Type 211 Accounts Payable Accounts Payable 213 Notes Payable Other Current Liabilities 215 Unearned Revenue Other Current Liabilities 217 Salaries Payable Other Current Liabilities
Owner’s Equity:
Account ID Description Account Type 311 Tracy Madding, Capital Equity–doesn’t close 312 Tracy Madding, Retained Earn.