The PC-SIG Library 10

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83 CHAPTER 12 DAILY MENU - OPTION 7 WHAT OPTION 7 IS USED FOR. DAILY Option 7 is used to print a complete listing of your general ledger accounts. As explained in Chapter 3, SETUP Option 1 is used to identify accounts that are to be included in your general ledger. While SETUP Option 1 is establishing your general ledger, according to your instructions, it also automatically adds extra accounts for use at a later time. . The accounts that you identify to SETUP Option 1 are referred to as "active accounts". . The extra accounts that Option 1 automatically adds are referred to as "inactive accounts". You may use DAILY Option 7 to print: . Active accounts only, or . Inactive accounts only, or . Both active and inactive accounts. A printout from Option 7 will show: . For each "active account" the: . Account classification, such as Current Assets or Current Liabilities. . Account number. . Account title, such as Cash in Bank. . Year's opening balance. . Cumulative sum of all charges to the account. 84 . For each "inactive account" the: . Account classification, such as Current Assets or Current Liabilities. . Account number. . Words "INACTIVE ACCOUNT". If you want to add another account to the general ledger, get the account number (an inactive account) from a DAILY Option 7 printout (this chapter). Then use that account number in DAILY Option 8 (next chapter). Or, perhaps you will want to use Option 7 to determine the total values that have been added to each of the active general ledger accounts. As explained above, the printout will list the total values for your review. OPTION 7 SEQUENCE OF EXECUTION AND AN ILLUSTRATION. Refer to Chapter 2 for the standard messages and reminders that are part of Option 7. After the standard messages and reminders, the following appears on your computer screen: WOULD YOU LIKE A BRIEFING ON HOW TO USE THIS PROGRAM TO BE DISPLAYED ON THE COMPUTER SCREEN? (ENTER `Y' FOR `YES' OR `N' FOR `NO'). _ If your response is `Y' the following appears: (If you respond with `N', the briefing is bypassed.) THIS COMPUTER PROGRAM PRINTS A CHART OF GENERAL LEDGER ACCOUNTS. YOU WILL BE GIVEN THE OPTIONS OF: 1. PRINTING ACTIVE ACCOUNTS ONLY, OR 2. PRINTING INACTIVE ACCOUNTS ONLY, OR 3. PRINTING BOTH ACTIVE AND INACTIVE ACCOUNTS. (ACTIVE ACCOUNTS ARE ACCOUNTS THAT SETUP OPTION 1 ADDED TO THE GENERAL LEDGER, IN ACCORDANCE WITH YOUR INSTRUCTIONS. INACTIVE ACCOUNTS ARE ACCOUNTS THAT SETUP OPTION 1 AUTOMATICALLY ADDED FOR FUTURE EXPANSION OF ACTIVE GENERAL LEDGER ACCOUNTS. INACTIVE ACCOUNTS ARE IDENTIFIED IN THE PRINTOUT BY THE WORDS `INACTIVE ACCOUNT'.) PRESS ANY KEY TO CONTINUE. 85 After you press a key, Option 7 asks for TODAY'S DATE, as explained in Chapter 2 (STANDARD MESSAGES AND REMINDERS). After you enter the date, Option 7 asks you to enter which accounts you wish to print, as follows: (The assumed input is "3".) SELECT THE OPTION OF YOUR CHOICE. ENTER `1' FOR PRINTING ACTIVE ACCOUNTS ONLY, OR ENTER `2' FOR PRINTING INACTIVE ACCOUNTS ONLY, OR ENTER `3' FOR PRINTING BOTH ACTIVE AND INACTIVE ACCOUNTS. 3 After making your entry, Option 7 begins printing. ERROR MESSAGES. There are several types of errors that you might make while entering your input into Option 7. An example is an entry of 13 for a month. Another example is a number that is not within a range of numbers requested. If you make an input error, Option 7 refuses to continue until you reenter your answer. Instructions will be displayed on the computer screen so that you may determine the correct input. PRINTED OUTPUT. The following sample printout assumes that all active and all inactive general ledger accounts are to be printed. For brevity, only a few accounts are shown in the sample printout. 86 PAGE 1 RUNDATE 06/16/85 ABC WHOLESALE, INC. CHART OF ACTIVE AND INACTIVE GENERAL LEDGER ACCOUNTS ACCOUNT CLASSIFICATIONS ACCOUNT ACCOUNT AND TITLES BALANCE NUMBER ************************* BALANCE SHEET *************************** CURRENT ASSETS INACTIVE ACCOUNT 1 INACTIVE ACCOUNT 2 CASH IN BANK 20,847.06 3 OPENING BALANCE - DEBIT 12,620.10 OPENING BALANCE - CREDIT .00 SUM OF PERIOD DEBITS 20,301.04 SUM OF PERIOD CREDITS 12,074.08 INACTIVE ACCOUNT 4 INACTIVE ACCOUNT 5 INACTIVE ACCOUNT 6 SHORT-TERM INVESTMENTS 4,500.00 7 OPENING BALANCE - DEBIT 4,500.00 OPENING BALANCE - CREDIT .00 SUM OF PERIOD DEBITS .00 SUM OF PERIOD CREDITS .00 INACTIVE ACCOUNT 8 INACTIVE ACCOUNT 9 INACTIVE ACCOUNT 10 The printout will continue in a similar manner until all Balance Sheet accounts are printed. Then, the Income Statement accounts will start. Practice. Use Option 7 and your practice general ledger to print all active and inactive general ledger accounts. 87 CHAPTER 13 DAILY MENU - OPTION 8 WHAT OPTION 8 IS USED FOR. Use Option 8 whenever you want to add an account to the general ledger. As explained in Chapter 3, SETUP Option 1 is used to identify accounts that are to be included in your general ledger. While SETUP Option 1 is establishing your general ledger, according to your instructions, it also automatically adds extra accounts for use at a later time. . The accounts that you identify to SETUP Option 1 are referred to as "active accounts". . The extra accounts that are automatically added are referred to as "inactive accounts". Use the "inactive accounts" if you want to add new accounts to your general ledger. Option 8 will remove the "inactive account" designation and will assign whatever account name that you specify. It is important WHERE, in the general ledger, that you add a new account. For example, assume that you want to add the account Sales Returns and Allowances. Like any other new account, this account should be added so that it will follow the account to which it is related. (Sales, in this case.) Another example might be a new bank account. You should add this account immediately after the bank account that is currently in the general ledger. If there is no related account in the general ledger, add the new account where it should normally appear - immediately before accounts receivable, for a bank account. The reason for this requirement is related to the logic built into the computer programs that print the Balance Sheet and the Income Statement. The logic, with certain exceptions, assumes that the accounts are in the order that they should appear in the financial statements. This should not prove to be a problem to you. Merely use DAILY Option 7 to print all active and inactive accounts. Use the printout to determine the available accounts (those with the words "Inactive Account") and the account number to be used. 88 So that you can see the results, we used Option 8 to add new accounts to your practice general ledger - account numbers 4, 80, 244, and 254 for corporations and account 4 or partnerships and proprietorships. Look at the Unadjusted Trial Balance that you prepared in the Practice section of Chapter 7. Notice that the accounts were added in their logical places for preparation of the financial statements. OPTION 8 SEQUENCE OF EXECUTION AND AN ILLUSTRATION. Refer to Chapter 2 for an explanation of the standard messages and reminders that are part of Option 8. After the standard messages and reminders, the following will appear on your computer screen: WOULD YOU LIKE A BRIEFING ON HOW TO USE THIS COMPUTER PROGRAM TO BE DISPLAYED ON THE COMPUTER SCREEN? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If you answer `Y', the following appears: (If your response is `N', the briefing is bypassed.) THIS COMPUTER PROGRAM IS TO BE USED ONLY FOR ADDING NEW ACCOUNTS TO THE GENERAL LEDGER. EACH NEW ACCOUNT MUST ALREADY BE IN THE GENERAL LEDGER AND BE CLASSIFIED AS AN `INACTIVE ACCOUNT'. YOU CAN DETERMINE WHICH ACCOUNT NUMBERS HAVE THIS CLASSIFICATION BY RETURNING TO THE DAILY MENU, SELECTING OPTION 7, AND SPECIFYING THAT ALL ACCOUNTS BE PRINTED. DO YOU WISH TO CONTINUE THIS SESSION? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If your answer is `Y', the following appears: (If you answer `N', you will be returned to the DAILY menu.) 89 THE COMPUTER IS READY TO START ADDING NEW ACCOUNTS TO THE GENERAL LEDGER. THREE INPUTS ARE REQUIRED FOR EACH NEW ACCOUNT. THEY ARE (1) THE ACCOUNT NUMBER, (2) THE ACCOUNT TITLE, AND (3) A `D' FOR `DEBIT' OR A `C' FOR `CREDIT'. ONE LINE ON THE COMPUTER SCREEN IS USED FOR ENTERING (1), (2), AND (3) ABOVE. CPA-LEDGER AUTOMATICALLY ASSIGNS TO EACH ACCOUNT A BEGINNING BALANCE OF ZERO. YOU SHOULD PRESS THE RETURN KEY AFTER ENTERING EACH OF THE THREE INPUT VALUES. (CAREFULLY NOTE THAT YOU WILL BE REQUIRED TO PRESS THE RETURN KEY THREE TIMES - ONE TIME FOR EACH OF THE THREE INPUT VALUES.) ERROR MESSAGES WILL APPEAR AT THE TOP OF THE COMPUTER SCREEN. THE ERROR MESSAGES ARE SELF EXPLANATORY. PRESS ANY KEY TO CONTINUE. After you press a key, Option 8 starts asking for information about the accounts that you wish to add to the general ledger. In the illustration to follow, we will assume that two accounts are to be added. Details are: . OFFICE SALARIES EXPENSE is to be added to the Income Statement accounts. Reference to an Option 7 printout shows that SALES SALARY EXPENSE is currently in the general ledger, with account number 207. The printout shows that account number 208 is an INACTIVE ACCOUNT. We will assign account number 208 to OFFICE SALARIES EXPENSE, a debit balance account. . OFFICE SUPPLIES is to be added to the Balance Sheet accounts, as a CURRENT ASSET. We decide to add this account immediately after MERCHANDISE INVENTORY which is presently in the general ledger with account number 19. Account number 20 is an inactive account. We will assign account number 21 to OFFICE SUPPLIES, a debit balance account. The Option 8 display and the assumed input, explained above, are: 90 ENTER DATA FOR YOUR NEW ACCOUNTS BELOW. ALWAYS REMEMBER THAT: 1. EACH NEW ACCOUNT REQUIRES T-H-R-E-E INPUTS (ACCOUNT NUMBER; ACCOUNT TITLE; AND A `D' FOR A `DEBIT' OR `C' FOR A `CREDIT'.) 2. YOU MUST PRESS THE RETURN KEY AFTER E-A-C-H OF THE THREE ABOVE INPUTS. 3. CPA-LEDGER AUTOMATICALLY ASSIGNS ZERO AS THE ACCOUNT'S BEGINNING BALANCE. 4. ALL MESSAGES WILL APPEAR IN THE UPPER PART OF THE COMPUTER SCREEN. 5. NEW ACCOUNTS REJECTED IN THEIR ENTIRETY ARE TO REENTERED. 6. ENTER `Q` (FOR QUIT) FOR THE ACCT. NBR. AFTER ALL NEW ACCOUNTS ARE ENTERED. 7. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'. ********************************************************************** ACCOUNT D=DEBIT NUMBER ACCOUNT TITLE C=CREDIT 208 OFFICE SALARIES EXPENSE D 21 OFFICE SUPPLIES D Q Each time you add a new account, the system asks you if the new account is for accounts receivable, beginning merchandise inventory, retained earnings for corporations or the capital account for partnerships and proprietorships (unless these accounts are already in the general ledger), or for a new bank account. After entering `Q', the following appears: YOUR INPUT WILL BE DISPLAYED ON THE SCREEN SO THAT YOU MAY VERIFY IT. CAREFULLY NOTE ANY ERRORS SO THAT INCORRECT DATA WILL NOT BE POSTED TO THE ACCOUNTS. PRESS ANY KEY TO CONTINUE. After pressing a key, you will see this: YOUR DEBIT ENTRIES (WITH ACCOUNT TITLES) APPEAR BELOW. THE LIST OF DEBIT ENTRIES IS COMPLETE. NOTE ANY INPUT ERRORS. PRESS ANY KEY TO CONTINUE. ACCOUNT ACCOUNT NUMBER ACCOUNT TITLE BALANCE 208 OFFICE SALARIES EXPENSE .00 21 OFFICE SUPPLIES .00 91 After you press a key, a screen similar to the above will appear for any credit accounts. For this illustration, the following wording would appear where the account information is normally displayed: **** THERE WERE NO NEW ACCOUNTS WITH CREDITS. ***** This control is provided to help you detect any input errors. (You might inform Option 8 that an account has a debit balance, for example, when you intended to signify that it has a credit balance.) Continuing with the illustration, the following is next to appear: DO YOU DESIRE TO ADD TO THE GENERAL LEDGER THE ACCOUNTS THAT YOU JUST REVIEWED? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If you answer `Y', the new account(s) will be added to the general ledger. If you answer `N', they will not be added. In either of the two events, the following is next to appear on your screen: DO YOU DESIRE TO ADD MORE NEW ACCOUNTS TO THE GENERAL LEDGER? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If you answer `Y', Option 8 starts again and asks you to enter information about the new accounts, as already explained. If you answer `N', you will be returned to the DAILY menu. ERROR MESSAGES. Option 8 monitors your input to help ensure that you do not make a mistake. If you make a mistake and if instructions explaining the required input are already on the computer screen, Option 8 refuses to continue until you reenter your answer. In other cases, however, you will need more detailed instructions on what you did wrong and how you should proceed. These cases are: 92 AN ACTIVE ACCOUNT NUMBER IS ENTERED. For this error, Option 8 displays the following message and question: YOU SELECTED AN ACTIVE ACCOUNT FOR POSTING. THE ACCOUNT NUMBER THAT YOU SELECTED IS NUMBER (a number is shown). NEW GENERAL LEDGER ACCOUNTS MUST COME FROM INACTIVE ACCOUNTS. INACTIVE ACCOUNTS CAN BE IDENTIFIED BY SELECTING OPTION 7 OF THE DAILY MENU. DO YOU WISH TO RETURN TO THE DAILY MENU? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If you answer `Y', none of the current accounts that you are in process of entering will be added to the general ledger and you will be returned to the DAILY menu. If you answer `N', Option 8 will resume at the point where you made the input error. A NON-EXISTENT ACCOUNT NUMBER IS ENTERED. This error causes the following message to be displayed: YOUR INPUT FOR THE ACCOUNT NUMBER IS TOO LARGE. THE LARGEST ACCOUNT NUMBER IN THE GENERAL LEDGER IS (a number is shown). IF DESIRED, YOU CAN DETERMINE THE ACCOUNT NUMBERS IN THE GENERAL LEDGER BY SELECTING OPTION 7 OF THE DAILY MENU AND SPECIFYING THAT ALL ACCOUNTS BE PRINTED. PRESS ANY KEY TO CONTINUE. After you press a key, Option 8 continues where you made the input error. AN ACCOUNT NUMBER IS ENTERED A SECOND TIME. For this error, Option 8 displays: 93 THE ACCOUNT NUMBER (a number is shown) THAT YOU SELECTED WAS ASSIGNED AN OPENING BALANCE DURING THIS OR A PREVIOUS SESSION. ONLY INACTIVE ACCOUNT NUMBERS MAY BE SPECIFIED IN THIS COMPUTER PROGRAM. YOU MAY DETERMINE WHICH ACCOUNTS ARE INACTIVE BY RETURNING TO THE DAILY MENU AND SELECTING OPTION 7. DO YOU WISH TO RETURN TO THE DAILY MENU? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If you enter `Y', none of the new accounts currently being entered will be added to the general ledger and you will be returned to the DAILY menu. If you enter `N', Option 8 resumes at the point where you made the input error. PRINTED OUTPUT. Using the illustration, above, the Option 8 printout would look like this: PAGE 1 RUNDATE 06/15/85 ABC WHOLESALE, INC. NEW ACCOUNTS ADDED TO THE GENERAL LEDGER ACCOUNT BEGINNING BALANCE NUMBER ACCOUNT TITLE DEBIT CREDIT 208 OFFICE SALARIES EXPENSE .00 21 OFFICE SUPPLIES .00 Practice. Use Option 8 and your practice general ledger to add two new accounts to the general ledger. Use the same account titles as used in the above illustration (OFFICE SALARIES EXPENSE and OFFICE SUPPLIES). Determine the account numbers that you should use by referring to a printout from DAILY Option 7. 94 CHAPTER 14 DAILY MENU - OPTION 9 WHAT OPTION 9 IS USED FOR. Use Option 9 at the end of the year, after all formal financial statements have been prepared. The information shown in the printout is used as a guide in identifying asset, liability, and equity accounts that are to be included in the new general ledger for the coming year, if you use Options 1, 2, and 3 of the SETUP menu. Account titles and dollar values shown in an Option 9 printout will agree, exactly, with account titles and dollar amounts shown on the Balance Sheet. As mentioned above, the Option 9 printout is used as a guide for the Balance Sheet accounts that should be in the new general ledger. Use the Income Statement as a guide for the remaining general ledger accounts. If you use Option 4 of the SETUP menu, CPA-LEDGER does all of this for you, automatically. (See Chapter 16.) Note that the Option 9 printout and the Income Statement are used as GUIDES in deciding on accounts to be included in the new general ledger. Determining the accounts is a crucial step. Carefully consider your past and anticipated business operations. Carefully identify every account that might be needed. Refer to Appendix D for additional detail. IN CASE OF DOUBT, INCLUDE THE ACCOUNT. It can be annoying, after the accounting year has started, to have to constantly add new accounts to the general ledger. Remember this when deciding whether to use Options 1, 2, and 3 of the SETUP menu or Option 4 of the SETUP menu. (Option 4 allows for NO new accounts, active or inactive.) OPTION 9 SEQUENCE OF EXECUTION. Refer to the standard messages and reminders that are discussed in Chapter 2. After the standard messages and reminders, Option 9 begins printing the account balances. The format of the printout is the same as for an unadjusted trial balance, as shown in Chapter 7. ERROR MESSAGES. As mentioned above, Option 9 is used AFTER the Income Statement and the Balance Sheet have been prepared at the end of the year. If you attempt to use Option 9 before these two statements are prepared (by using DAILY Option 3), the following message will appear on your computer screen: 95 YOU HAVE EITHER (1) NOT YET USED OPTION 3 OF THE DAILY MENU TO PREPARE AN INCOME STATEMENT AND A BALANCE SHEET OR (2) YOU USED DAILY OPTION 1 SINCE YOU LAST USED OPTION 3. YOU MUST USE DAILY MENU OPTION 3 BEFORE THE CURRENTLY REQUESTED POST-CLOSING TRIAL BALANCE WILL BE PREPARED. After pressing a key, you will be returned to the DAILY menu. Practice. Use Option 9 and your practice general ledger to print a post-closing trial balance. Remember, before Option 9 will execute, an Income Statement and a Balance Sheet (DAILY Option 3) must be printed. If you see the error message mentioned above when you select Option 9 from the DAILY menu, execute Option 3 (Chapter 8) and then Option 9 (this Chapter).