Practice Set 2
Linda's Video Showcase
Video Showcase is lengthy introduction to accounting for a
merchandising company. Linda has decided to
convert to your software
as of January 1 of the current year. Be
sure your tax tables has the current year.
If not, use the latest year you have tax
tables for as the dates for this practice set.
2. Enter the
following information in the appropriate section of your software.
Peachtree Accounting calls it setting up a
Showcase is a sole proprietorship. It is a
video rental company using accrual
accounting system with real-time posting.
company with a Federal Tax
ID Number of 222222222. It uses an accrual
accounting system with real-
time posting. The conversion will
begin on January 1 of the current year.
3. Customer Defaults
Credit limits will be $50,000, finance
charges of 18% on balances up to $10,000
and 21%, and interest will be charged on
4. Accept defaults for statements and invoices.
5. Vendor defaults
Credit limits will be $50,000, aging
defaults and vendor defaults will be accepted.
6. Accept inventory defaults.
7. Accept payroll defaults with a state unemployment tax of 4.5%.
8. Use the
Balance to set up beginning balances.
Tables A and
B to create customer accounts and outstanding invoices.
Tables C and
D to create Vendor accounts and outstanding invoices.
Tables E and F to
create inventory accounts, employee accounts, and their balances.
The following tables contain three months of
information. You will be reminded to record all
transactions for a month (page 24 of the paper version and table L in this
before going on the the next month.
Tables G to
record credit sales with a standard invoice.
Tables H to
record receipts and applying them to outstanding invoices and cash sales.
Tables I to
record the purchase of an asset or an expense with a purchase order.
12. After recording February purchases, Linda checked her cash balances
and decided to
pay all outstanding invoices.
Tables J to
record paying for an asset or expense without an existing vendor
Tables K to
to record adjusting entries.
16. Answers for January
17. Answers for February and March