Using General Ledger Using General Ledger Software and Spreadsheets in Software and Spreadsheets in

AccountingAccounting

Carol YachtCarol Yacht Author-Software ConsultantAuthor-Software Consultant

carol@carolyacht.comcarol@carolyacht.comwww.carolyacht.comwww.carolyacht.com

Mike Fujita, Accounting ProfessorMike Fujita, Accounting ProfessorLeeward Community CollegeLeeward Community College

fujitam@hawaii.edufujitam@hawaii.eduhttp://www.ilearnacc.comhttp://www.ilearnacc.com

Use technology in

Use technology in

accounting courses

accounting coursesToday’s

Objective

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Faculty and Practitioners Agree on the Critical Technology Skills for Accountants:

Spreadsheet software

Accounting software

Word processing software

Presentation software

Database

Windows

World Wide Web

Technology nomenclature

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Has the curriculum changed?Has the curriculum changed?

Most potential changes focus on the ways that technology is integrated into the curriculum. Other changes relate to improving writing skills and increasing the focus on business applications. Students need Office Suite and Business Suite skills.

W. Steve Albrecht, Brigham Young University; Robert J. Sack, University of Virginia; study published by American Accounting Association, 2000. http://aaahq.org/pubs/AESv16/toc.htm

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Who are today’s students?Who are today’s students?

Students in college today think of the Students in college today think of the Internet the way we think of TV: it’s Internet the way we think of TV: it’s always been there and it stays on. always been there and it stays on.

Debates persist over the Net’s birthday Debates persist over the Net’s birthday but today’s college students were born but today’s college students were born after after the invention of the Internet. the invention of the Internet.

The Internet started 35 years ago, but The Internet started 35 years ago, but who heard of it then? Who hasn’t heard who heard of it then? Who hasn’t heard of the Internet now?of the Internet now?

Leonard Kleinrock, UCLA computer scientist, stands next to the refrigerator-sized computer that made the first-ever connection in 1969 to what was to become the Internet.

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Use software in these Use software in these courses:courses:

Accounting I & II; Principles of Accounting I & II; Principles of Accounting; College AccountingAccounting; College Accounting

Financial/Managerial AccountingFinancial/Managerial Accounting Computer AccountingComputer Accounting Using Spreadsheets in AccountingUsing Spreadsheets in Accounting Accounting Information SystemsAccounting Information Systems

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GL System G/L

CofA GJ GL

A/R

CRJ SJ

A/P

CDJ PJ

Inventory

CGSJ Valuation

Jobs

Job Prof. Rep Job Ledger

Payroll

Pay. Jrnl Registers

Tax Forms

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Peachtree’s General Ledger flow-chart

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When should I use General When should I use General Ledger and Spreadsheet software Ledger and Spreadsheet software

in my accounting course?in my accounting course?

Use GL software and Excel after students have Use GL software and Excel after students have completed a chart of accounts and journalizing in completed a chart of accounts and journalizing in the general journal and posting to the general the general journal and posting to the general ledger. ledger.

In most textbooks, introduce software after In most textbooks, introduce software after Chapter 4.Chapter 4.

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Why use software in the first Why use software in the first accounting course?accounting course?

Strengthen students’ understanding of fundamental accounting Strengthen students’ understanding of fundamental accounting principles principles − − debit/credit; double-entry; accounting cycle.debit/credit; double-entry; accounting cycle.

Through the use of GL software, students see the relationship Through the use of GL software, students see the relationship between journal entries and financial statements. between journal entries and financial statements. THINK DRILL-THINK DRILL-DOWN! DOWN!

What software is available?What software is available?

““Generic” or publisher software Generic” or publisher software

Peachtree Complete AccountingPeachtree Complete Accounting

QuickBooks. QB Online Edition is FREE for 30 daysQuickBooks. QB Online Edition is FREE for 30 days

ExcelExcel

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Think Drill-Down!Think Drill-Down!

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Software templatesSoftware templatesPeachtree templates -- .PTB extensions. In 2004 Peachtree templates -- .PTB extensions. In 2004 version, restore wizard allows you to create a new version, restore wizard allows you to create a new company from .ptb file. company from .ptb file. http://balancesheet.swlearning.com/0903/0903b.htmlhttp://balancesheet.swlearning.com/0903/0903b.html

QuickBooks -- .QBB extensions. Create student QuickBooks -- .QBB extensions. Create student template with starting data.template with starting data.

Excel -- .XLS extensions. Student templates include Excel -- .XLS extensions. Student templates include starting data.starting data.

Generic software includes EOC problems for use with Generic software includes EOC problems for use with software.software.

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Computer Accounting course:Computer Accounting course:Peachtree Complete Accounting 2004Peachtree Complete Accounting 2004 textbook website: www.mhhe.com/yacht2004textbook website: www.mhhe.com/yacht2004

QuickBooks Pro 2004 QuickBooks Pro 2004 textbook website: www.mhhe.com/ulmer2003textbook website: www.mhhe.com/ulmer2003

Great Plains (MS Business Solutions)Great Plains (MS Business Solutions)www.greatplains.comwww.greatplains.com

Online software FREE for 30 daysOnline software FREE for 30 days

ePeachtree – ePeachtree – www.epeachtree.comwww.epeachtree.com

QB: Online Edition – QB: Online Edition – http://oe.quickbooks.comhttp://oe.quickbooks.com

Microsoft Excel – http://office.microsoft.com/excelMicrosoft Excel – http://office.microsoft.com/excel

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Using Spreadsheets in Accounting Mike Fujita

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What is Spreadsheet Accounting?

In a spreadsheet accounting course, students apply accounting procedures to Excel. Topics include:

Excel tutorial - learn basic spreadsheet elements, such as how to move around, enter data, save, format, use page setup and print.

Accounting projects - use Excel templates to manipulate accounting data; analyze spreadsheets.Reinforce financial and managerial accounting concepts.

Model building - build spreadsheets from scratch. For example, payroll, depreciation, amortization schedules.

Case problems - advanced model-building projects.

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Excel balance sheet

AssetsCash 5,600$ Accounts receivable 2,000 Supplies 575 Prepaid insurance 2,200

Equipment 50,000$ Accumulated depreciation-Equipment 25,000

25,000 Total Assets 35,375$

LiabilitiesAccounts payable 2,300 Notes payable 7,000 Salaries payable 700

Total Liabilties 10,000$

Owner's EquityCapital 25,375

Total Liabilities and Owner's Equity 35,375$

Mike's Surf and SeaBalance Sheet

As of 12/31/03

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Excel income statement

RevenuesService revenue 35,000$

ExpensesSalaries expense 8,700$ Rent expense 1,200 Utilities expense 800 Advertising expense 300 Insurance expense 400 Depreciation expense 5,000 Supplies expense 925

Total Expenses 17,325

Net Income 17,675$

Mike's Surf ShopIncome Statement

for the year ended 12/31/03

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Questions?Questions?