The document discusses setting up new companies and entering beginning balances in Peachtree Complete Accounting 2011. It provides instructions for setting up two service business - Mike Parry Designer and an exercise business. It also details entering the chart of accounts beginning balances from the October 1, 2011 balance sheet and discusses how the businesses set up in Chapter 9 will be used in Chapters 10 and 11.

1. Chapter 9:Chapter 9:
New Company SetupNew Company Setup
and Beginningand Beginning
BalancesBalances
McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. New Company Setup andNew Company Setup and
Beginning Balances, p. 281Beginning Balances, p. 281
 Chapter 9 begins Part 2 of the book—Peachtree Complete
Accounting 2011 for Service Businesses. In this part of the
book, you are the owner of an accounting practice that does
the monthly record keeping for several service businesses.
 In Chapter 9, you set up two service businesses—Mike
Parry Designer and the end-of chapter exercise, Art by Your
Name. You set up a business using one of PCA’s sample
companies. Then, you record October 1, 2011 beginning
balances from Mr. Parry’s balance sheet.
 The chapters in Part 2 work together--the service
businesses set up in Chapter 9 are continued in Chapters
10 and 11.
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3. Peachtree TipsPeachtree Tips
In Chapter 9, beginning balances are entered from the October 1, 2011
balance sheet (text page 306). This means that the chart of accounts
beginning balances must be entered for the previous month—
September 1 through 30, 2011. See Entering Chart of Accounts
Beginning Balances text pages 305 through 311. Review steps 2, 3,
and 4 on pages 307-308.
The businesses that you set up in Chapter 9 are continued in Chapters
10 and 11.
Remember to use a unique name for the businesses that you set up in
Chapter 9. For example, use your first and last name Designer to
identify the businesses.
When a company is set up in Peachtree, a shortened named is
assigned for that company; for example, the shortened company name
for Mike Parry Designer is mikparde. The Windows 7 default location
for Mike Parry Designer is C:Sage PeachtreeCompanymikparde. (If
the student’s first and last name is used, the shortened company name
differs. Windows Vista and XP default locations also differ. Refer to File
Management, pages xvii-xviii.)
Use Windows Explorer to see the file size, text pages 313-314.
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4. Peachtree Tips (concluded)Peachtree Tips (concluded)
 You can restore to an existing company—one that is previously
set up—or restore a new company, bypassing the process of
creating a new company. The Restore Wizard includes two
options on the Select Company window: An Existing Company
and A New Company. If A New Company is selected, then the
company will be named the same as the backup file selected.
 Let’s say you want to restore a backup file for a company that is
not set up in Peachtree; for example, a back up file exists but the
company is not shown as a Peachtree company.
 If you start Peachtree and the appropriate company cannot be
opened, use the Restore Wizard to select A New Company. Using
the appropriate backup file, and the selection for A New Company,
you can start where you left off the last time Peachtree was used.
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5. Backing Up Chapter 9Backing Up Chapter 9
Backup Name (.ptb)
Excel (.xlsx)
Kilobytes Page Nos.
Chapter 9 Chart of Accounts.ptb 1,295 KB 298-301
Chapter 9 Beginning Balances.ptb 1,337 KB 314
Chapter 9_Chart of Accounts Beginning
Balances.xlsx
16 KB 315-317
Exercise 9-1.ptb 1,287 KB 322-323
Exercise 9-2.ptb 1,290 KB 325-326
Exercise 9-2_Chart of Accounts and
Beginning Balances.xlsx
18 KB 326
 In the textbook, detailed steps are shown for backing up to Peachtree’s default hard
drive location: C:SagePeachtreeCompanymikparde [or, your company’s shortened
name]. The chart on pages 279-280 shows the size of the backup files. The Excel
files saved are also shown. The textbook steps explain how to backup to external
media such as CD-Rs, DVD-Rs, and USB media.
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6. Business Status – Peachtree’s Dashboard, p. 289Business Status – Peachtree’s Dashboard, p. 289
Navigation Bar
Period 10 -
10/01/11-
10/31/11
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7. Shortened name for Mike Parry DesignerShortened name for Mike Parry Designer
(Read me box, p. 289)(Read me box, p. 289)
 A folder is set up on the hard drive
for Mike Parry Designer—
C:SagePeachtreeCompany
mikparde. (If you are using Vista or
XP, refer to Company Data Files
location, text page xviii.)
 Peachtree’s shortened name is the
first three letters from the first word
(mik), the second word’s first three
letters (par), the third word’s first
two letters (de).
 If you used your first and last name,
the shortened name will differ.
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8. Entering Chart of AccountsEntering Chart of Accounts
Beginning Balances, pages 305-308Beginning Balances, pages 305-308
 Follow steps 1-3 on pp. 306 and 307 to select the beginning
balance period. (The Select Period window is shown below
step 3 on p. 307).
 Make sure you have selected From 9/1/11 through 9/30/11.
You cannot change this later. Then, click on <OK>.
Make sure that
From 9/1/11 through
9/30/11 is selected
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9. Chart of Accounts BeginningChart of Accounts Beginning
Balances window, pp. 308-309Balances window, pp. 308-309
 Make sure that your beginning balances are as of September
30, 2011. If you enter your balances for the wrong month
(period), your financial statements will not show the current,
month and year-to-date amounts correctly in Chapter 11.
 Complete steps 7 and 8, pp. 309-310.
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10. Glossary of TermsGlossary of Terms
Chapter 9Chapter 9

11. Posting, p. 277Posting, p. 277
Part 2 openerPart 2 opener
 One of the best features of a computerized accounting
system is how quickly posting is done. Once entries are
recorded and checked for accuracy, posting is a click of the
mouse. All entries are posted to accounts in the general
ledger and account balances are calculated—fast, easy, and
accurate. The diagram illustrates this process.
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12. Balance Sheet, p. 305Balance Sheet, p. 305
 A Balance Sheet lists the types and amounts of
assets, liabilities, and equity as of a specific
date. The balance sheet is also called a
statement of financial position. Mike Parry
Designer’s October 1, 2011 balance sheet is
shown on page 306. [Hint: Peachtree dates
reports the last day of the month. See
Peachtree’s balance sheet, page 311.]
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13. Statement of FinancialStatement of Financial
Position, p. 305Position, p. 305
 A balance sheet is also called a statement of
financial position.
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14. Internet Activity, p. 317Internet Activity, p. 317
1 Go to the book’s website at www.mhhe.com/yacht2011.
2 Link to Student Edition.
3 In the Choose a Chapter field, select Chapter 9. Observe that the Quizzes
and More Resources list includes additional activities. In the Course-wide
Content list, link Internet Activities; then link to Part 2 Internet Activities for
Chapter 9-11. Select Open or Save.
4 If necessary, scroll down the window to STARTING A BUSINESS – Chapter
9. Read steps 1, 2 and 3.
5 Follow the steps shown on the textbook’s website to complete this Internet
activity.
6 Use a word processing program to write a summary for each website
visited. Your summaries should be no more than 75 words.
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15. Going to the Net, pp. 317-318Going to the Net, pp. 317-318
Access information about the chart of accounts at
http://en.wikipedia.org/wiki/Chart_of_accounts.
Read the information on Wikipedia’s chart of
accounts website.
1. What is the chart of accounts?
2. List four asset accounts, two liability accounts, two
equity accounts, one revenue account, and three
expense accounts.
3. What is the trial balance?
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16. Assessment Rubric, pp. 326-327Assessment Rubric, pp. 326-327
Task Date Selections Window
Shortened
Company
Name
October 1,
2011
Beginning
Balances
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17. Analysis Questions, p. 327Analysis Questions, p. 327
1. What chart of accounts beginning balance
date is used for entering October 1, 2011
account balances in Peachtree?
2. How does the account beginning balance
date affect the current month and year-to-
date amounts on the financial statements?
3. After recording beginning balances, why
does Peachtree show October 31, 2011 as
the balance sheet date?
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