Peachtree Assignment to be Submitted on Final Exam Date

HARAMAYA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
DEPARTMENT OF ACCOUNTING AND FINANCE
Assignment for the course Accounting Software Application
Exercise 1 – Setting up a New Company
Your name Share Co. is a merchandising firm that trades electronic items. It had been using a
manual accounting system in previous years and decided to adopt computerized accounting system
since January 1, 2020
Using the following data, set up a new company for your name Share Company:
a. Company information
a. Company name: Your full Name
b. Address line 1:
c. City: Harar
d. Country: Ethiopia
e. Business type: Corporation
b. Chart of accounts: Build your own company
c. Accounting method: Accrual method
d. Posting method: Real-time
e. Accounting periods: 12 monthly accounting periods
f. Starting of the fiscal periods: January 2020
g. First month of data entry: January
Maintain the following chart of accounts for your name share Co. and insert the beginning balances
as at period 12: 12/01/2019 through 12/31/2019. All accounts have their balances into their normal
balance side.

Account No. Account Title Balance

Debit Credit
1001 Cash at bank 110,000
1002 Petty cash 2,600
1010 Accounts receivable 18,800

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1010-01 Allowance for doubtful accounts 2,000

1011 Prepaid insurance 5,600
1012 Supplies 3,600
1013 Inventory 38,500
1101 Office equipment and machineries 180,000
1101-01 Accumulated depn-Office 54,000
equipment & machineries
1102 Building 600,000
1102-01 Accumulated depreciation- Building 90,000
2001 Accounts payable 26,000
2002 Income tax payable 8,200
2003 Value Added tax payable 9,900
2101 Mortgage payable 120,000
3001 Capital stock 300,000
3002 Retained earnings 349,000
3003 Dividend -
4001 Sales -
4001-01 Sales returns and allowance -
4001-02 Sales discount -
4101 Interest income -
5001 Cost of sales -
6001 Salary expense -
6002 Insurance expense -
6003 Supplies expense -
6004 Depreciation expense-Office -
equipment and machinery
6005 Depreciation expense-Building -
6006 Advertising expense -
6007 Miscellaneous expense -
Total 959,100 959,100

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 Peachtree Assignment to be Submitted on Final Exam Date

Exercise 3 – Maintaining Subsidiary Ledgers

(1) Maintaining Vendors Ledger
Address A/P Beginnin
Vendor Invoice Purchase Invoice
Vendor Name a/c g
Id Date Defaults No.
balance
V01 Alemu Zenebe Babile 12/11/2019 1013 P455 A/P 8,600
V02 Belay Kassa Jigjiga 12/02/2019 1013 P432 A/P 5,200
V03 Abdissa Chala Wuchale 12/10/2019 1013 P460 A/P 4,300
V04 Girma Bayisa Dire Dawa 12/18/2019 1013 P450 A/P 3,000
V05 Kebede Haile Adama 12/20/2019 1013 P428 A/P 4,900
Required:
(i) Maintain vendors ledger;
(ii) Insert the beginning balances;
(2) Maintaining Customers Ledger
Customers Ledger
A/R Beginn
Custo Invoice Sales Invoice a/c ing
Customer Name Address
mer Id Date Default No. balanc
e
C01 Ashebir Belay Harar 12/04/2019 4001 S311 A/R 4,800
C02 Lemlem Yihunie Dire Dawa 12/05/2019 4001 S318 A/R 5,000
C03 Hussien Kedir Chiro 12/16/2019 4001 S326 A/R 3,000
C04 Ali Ahmed Haramaya 12/31/2019 4001 S340 A/R 6,000

Required:

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 Peachtree Assignment to be Submitted on Final Exam Date

(iii) Maintain customer ledger;

(iv) Insert the beginning balances

(3) Maintaining Inventory Ledger

Default GL Accounts
Item G/L Cost Unit
ID Description GL GL Qt.
class cost of method Cost
sales Inventory
sales

101 TV set Stock Average 2 1,800

4001 1013 5001

102 Refrigerator Stock Average 3 2,800

4001 1013 5001

103 Stove Stock Average 2 2,250

4001 1013 5001

104 Computer Stock Average 2 5,200

4001 1013 5001
Electronics
105 Stock Average 2 3,800
type writer 4001 1013 5001

106 Printer Stock Average 2 2,000

4001 1013 5001

Required:
(v) Maintain inventory ledger;
(vi) Insert the beginning balances;
Exercise 5 – Recording Transactions;
(1) Sales Orders
Jan 1: Issued sales order no. SO#001 for Lemlem Yihunie for 1 TV set at Br. 2,200 to be
shipped 4 days later.

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 Peachtree Assignment to be Submitted on Final Exam Date

Jan 3: Issued SO#002 for Hussien Kedir for 1 electric typewriter at Br. 4,600 to be shipped
5 days later.
Jan 4: Issued SO#003 for Ali Ahmed for 1 computer at Br. 6,400 and 1 printer at Br. 3,000
to be issued 5 days later.
Required: Record the above events
(2) Sales Invoices
Jan 5: Issued SI#001 for 1 TV set shipped to Lemlem Yihunie. Sales order no. SO#001 had
been issued for this shipment earlier.
Jan 9: Sold 1 computer to Ali Ahmed at Br. 6,400 for which SO#003 had been issued
earlier. The amount was collected immediately when the good had been shipped.
Issued sales invoice no. 002
Jan 11: Issued SI#003 for 2 computers at Br.6000 each to Hussien Kedir.
Required: Record the above events in the appropriate journal;
(3) Cash Collection
Assume all the collections are deposited into the bank.
Jan 4: Received the amount involved on sales invoice no. S311 from Ashebir Belay; receipt
no.001 and deposit ticket no.100
Jan 4: Received the amount involved on sales invoice no. S318 from Lemlem Yihunie;
receipt no.002 and deposit ticket no.101
Jan 15: Received amount outstanding on sales invoice no.002 from Ali Ahmed receipt
no.003 and deposit ticket no.102.
Jan 18: Collected the amounts outstanding on sales invoice no. 001 from Lemlem Yihunie;
receipt no.004 and deposit ticket no.103.
Jan 20: Received the amount outstanding on sales invoice no. 003 from Hussien Kedir;
receipt no. 005 and deposit ticket no.104
Required:
Record the above events in the appropriate journal;
(5) Purchase Orders
Jan 5: Issued purchase order no. PO154 to Alemu Zenebe to buy 50 printers at Br. 2,100
each; Good thru is Jan 15.

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 Peachtree Assignment to be Submitted on Final Exam Date

Jan 7: Issued purchase order no. PO155 to Girma Bayisa to buy 26 TV sets at Br. 2,000
each. Items to be received on after 10 days
Jan 10: Issued purchase order no. PO 156 to Abdissa Chala to acquire 16 computers at Br
5,400 each. Good thru is Jan 20.
Required:
(i) Record the above entries in the proper journal;
(6) Purchase or Receipt of Inventory
Jan 15: Received all the items indicated on PO154 from Alemu Zenebe at a price of Br.
2,150 with the same terms. Issued purchase invoice number 500
Jan 17: Received 20 TV sets for those indicated on purchase order no. PO155 from Girma
Bayisa at Br. 2,000 each. Purchase invoice number 501
Jan 20: Acquired 16 computers at Br 5,400 indicated in PO 156 from Abdissa chala. The
entire amount was paid by the time the items were received. Purchase invoice
number 502 is issued.
Jan 23: Acquired 6 units of refrigerator from Kebede Haile at Br. 2,800 each. Purchase order
number 503 is issued.
Required:
(i) Record the above entries in the appropriate journal;
(7) Cash Payments;
Payments from cash at bank.
Jan 2: Paid cash to Belay Kassa in settlement of purchase invoice #432 check number 210.
Jan 9: Paid cash to Abdissa Chala in settlement of purchase invoice #460 check number 211
Jan 10: Paid cash to Alemu Zenebe in settlement of purchase invoice #455 check number 212
Jan 12: Paid cash to Girma Bayisa in settlement of purchase invoice #501 check number 213
Jan 14: Paid dividends to owners; Br. 12,000. Check number 214.
Jan 18: Paid cash to Girma Bayisa in settlement of purchase invoice #450 check number 215
Jan 20: Paid cash to Kebede Haile in settlement of purchase invoice #428 check number 216
Required: Record the above transactions in the proper journal
(8) Other Transactions
Inventory Adjustments

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 Peachtree Assignment to be Submitted on Final Exam Date

Jan 31: While performing a physical count, it is determined that unit of TV set on hand to be
29. The difference is assumed to be stolen. Reference JV001.
Other Adjustments
Jan 31: Amount of supplies on hand allocable for future period is determined to be Br. 2,800.
JV#010
Jan 31: Amount of insurance expired during the period is determined to be Br. 3,400.JV#011
Jan 31: Depreciation expense of the month on office equipment and machineries is
determined to be Br. 1,200. JV#012
Jan 31: Depreciation expense of the month on building is determined to be Br. 3,600.JV#013.
Required:
(i) Record the above transactions in the proper journal

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