Chapter 2: Chapter 2: Vendor TransactionsVendor Transactions

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Vendor TransactionsVendor 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.

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Software Objectives, p. 51Software Objectives, p. 51 Restore data from Exercise 1-2. (This back up was

made on p. 47.) 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 for

the Chapter 2 backup; one blank, formatted disk for the Exercise 2-2 backup.

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Web Objectives, p. 51Web Objectives, p. 51 Use your Internet browser to go to the book’s

website at www.mhhe.com/business/accounting/yacht2002

Complete the Internet activity for Accounting Students.

Use a word processing program to write a summary about the website(s) that you visited.

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Peachtree TipsPeachtree TipsIn Chapter 1 on page 47, 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.

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Peachtree TipsPeachtree Tips

Change global settings to show general ledger accounts, pp. 53-54, (Options, Global). If the boxes are checked, then general ledger accounts (“GL Account” column) are hidden on the Tasks screens.

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Peachtree Tips Peachtree Tips

Peachtree defaults to hiding the general ledger accounts. This is called “Accounting Behind the Screens.” (p. 53)

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.

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Backing Up Chapter 2Backing Up Chapter 2

Use a blank, formatted disk to back up Chapter 2 on page 75. Use another blank, formatted disk to back up Exercise 2-2 on page 82.

Chapter Disks Backup Name KB Pg Nos.

2 4 of 18 a:\Chapter 2.ptb 760 75

5 of 18 a:\Exercise 2-2.ptb 760 82

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Chapter 2 TopicsChapter 2 Topics1. Software & web objectives, p. 512. Getting Started, p. 523. Restoring data from Chapter 1, p. 524. Accounts payable tasks, p. 53

a. The purchase order window, p. 53b. Changing global settings for “Accounting Behind the

Screens,” pp. 53-54c. Printing purchase orders, pp. 57-58d. The Purchases/Receive Inventory window, pp. 59-60e. Adding a new vendor, pp. 60-63f. Entering a vendor invoice, pp. 64-65g. Posting a purchase transaction, 66

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Chapter 2 Topics continuedChapter 2 Topics continued5. Payments to vendors, pp. 67-696. Printing checks, pp. 69-727. Changing the global settings, p. 728. Displaying the vendor ledgers, pp. 73-749. Backing Up Chapter 2 data, p. 7510. Internet activity, p. 7611. Summary & Review, p. 76

a. Going to the net, p. 77b. Multiple choice questions, pp. 77-79c. Exercise 2-1, pp. 80-81d. Exercise 2-2, pp. 81-82e. Chapter 2 index, p. 83

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Changing Global Setting for “Accounting Changing Global Setting for “Accounting Behind the Screens, pp. 53-54Behind the Screens, pp. 53-54

From the menu bar, click on Options, Global. The boxes in the section “Hide General Ledger

Accounts” must be unchecked, p. 54.

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““Purchase Orders” window, p. 54Purchase Orders” window, p. 54 From the menu bar, click on Tasks, then select Purchase

Orders.

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Vendor drop-down list, p. 55Vendor drop-down list, p. 55 Select “AARON-01,” Aaron and Son Contractors, as the

vendor. (This is step 5 on page 55.)

Continue with steps 6, 7, 8, and 9 on page 55.

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Completed Purchase Order, p. 56Completed Purchase Order, p. 56 After completing steps 10, 11, 12, and 13 on page

56, the completed “Purchase Orders” window is shown.

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““Accounting Behind the Screens,” Accounting Behind the Screens,” Purchase Order Journal, p. 57Purchase Order Journal, p. 57

From the completed “Purchase Orders” window, click on the “Journal” icon.

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Purchases/Receive Inventory, p. 59Purchases/Receive Inventory, p. 59 From the menu bar, select Tasks, then Purchases/Receive

Inventory.

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Maintain Vendors, p. 60Maintain Vendors, p. 60 The “Maintain Vendors” window appears when you

press the plus key <+> in the Vendor ID field.

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Completed “Purchases/Receive Completed “Purchases/Receive Inventory” window, p. 65Inventory” window, p. 65

The completed “Purchases/Receive Inventory” screen is shown on p. 65.

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““Payments” window, p. 67Payments” window, p. 67 From the menu bar, select Tasks, then Payments.

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Completed “Payments” window, p. 68Completed “Payments” window, p. 68 The completed “Payments” window is shown on

page 68.

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Select a Report, p. 70Select a Report, p. 70 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.”

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Vendor Ledger, p. 74Vendor Ledger, p. 74 From the menu bar, select Reports, Accounts

Payable, highlight Vendor Ledgers, then select the “Preview” icon.

Chapter 2 Chapter 2 Glossary of TermsGlossary of Terms

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Purchase discount, p. 51Purchase discount, p. 51

Cash discounts from vendors in return for early payment of an invoice, for example, 2% 10 days, net 30.

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Purchase orders, p. 53Purchase orders, p. 53

Purchase orders are used to place an order from a vendor.

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Coding system, p. 60Coding system, p. 60

A combination of letters and numbers that are used to identify customers and vendors. The coding system is case sensitive, for example A002 is not the same as a002.

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Case sensitive, p. 61Case sensitive, p. 61

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, ACE-01 is not the same as ace-01.

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Chapter 2, Internet Activity, p. 76Chapter 2, Internet Activity, p. 761. Go to the book’s website at

www.mhhe.com/business/accounting/yacht2002

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.” 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.

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Going to the Net, p. 77Going to the Net, p. 77

Access information about domain name statistics at www.domainstats.com/

1. How many domains are registered worldwide?

2. How many .com names are registered?

3. List the extensions that are used with website domain names.