19 CHAPTER 3 SETUP MENU - OPTION 1 As mentioned in Chapter 1, CPA-LEDGER has two main menus. They are the SETUP menu and the DAILY menu. . The SETUP menu has five processing options and an option for discontinuing processing. Use Options 1, 2, and 3 to start a COMPLETELY NEW general ledger. Use Option 4 to start a general ledger from the general ledger used during the previous year. Use Option five to go to the DAILY menu. . The DAILY menu has ten processing options and an option for discontinuing processing. Use the ten processing options DURING the year to record transactions and to obtain various printed reports. This and the next two chapters discuss the SETUP menu. The remaining chapters take up the DAILY menu. THE SETUP MENU. Chapter 1 tells you how to use your PC-DOS diskette for loading BASICA and for starting the SETUP menu. When the menu appears on your computer screen, it will look like this: CPA-LEDGER SETUP MENU SELECT ONE OF THE FOLLOWING OPTION NUMBERS BELOW. 1. MAKE A NEW GENERAL LEDGER AND ASSIGN ACCOUNT TITLES. 2. IDENTIFY SELECTED ACCOUNT NUMBERS THAT ARE IN THE NEW GENERAL LEDGER AND IDENTIFY YOUR BUSINESS NAME. 3. ASSIGN BEGINNING DOLLAR AMOUNTS TO NEW GENERAL LEDGER ACCOUNTS. 4. START THIS YEAR'S GENERAL LEDGER FROM LAST YEAR'S GENERAL LEDGER. 5. GO TO THE DAILY MENU. 6. STOP ALL CPA-LEDGER PROCESSING AND RETURN CONTROL TO PC-DOS. WHICH OPTION NUMBER DO YOU SELECT? _ (C) COPYRIGHT 1986, 1988, 1989 TRONOLONE & FOSTER,PC 20 If you wish to start a completely new general ledger, you must select Options 1, 2, and 3 in CONSECUTIVE order. Select an option by entering 1, 2, or 3 as your response to the menu question "WHICH OPTION NUMBER DO YOU SELECT?". Then press the RETURN key on your keyboard. After you do that, SETUP will load and execute the appropriate computer program. This chapter covers SETUP menu Options 1, 2, and 3. Option 4 is discussed in Chapter 16. Option 4 is used whenever you already have a general ledger and do not wish to reenter all of the account titles and values. Option 4 automatically closes your old general ledger and starts a new general ledger for the coming year. (Make SURE you make a back-up of a general ledger BEFORE you use it to start a new general ledger for the coming year, PLEASE!) WHAT "SETUP" OPTIONS 1, 2, AND 3 ASK FOR. The programs, as they execute, request several items of input. Respond by giving your input at the computer's keyboard. . Option 1 asks for your business name and for the titles of accounts that you want included in your general ledger. It also asks you to indicate, for each account, the "account balance", which will be either a "D" for "debit" or a "C" for "credit". A listing of accounts that you entered, showing account numbers and titles, is printed after Option 1 is finished processing. . Option 2 asks for a several account numbers and for your business name. Get the account numbers from an Option 1 printout. As explained in Chapter 1, and as will be illustrated in this chapter, this data is stored by CPA-LEDGER for automatic retrieval whenever it is needed. Option 2 is a time-saver for you. For example, you inform CPA-LEDGER of your company name in Option 2. Then, when printed reports are prepared, CPA-LEDGER gets the name from its memory. The same concept applies for the account numbers that you are asked to supply. . Options 3 is for assigning dollar values to the accounts that you established while using Option 1. Again, get the account numbers from an Option 1 printout. (Use this option one time per year, only.) This chapter discusses Option 1. The next two chapters take up Options 2 and 3. Option 4 is discussed in chapter 16. WHAT OPTION 1 IS USED FOR. Option 1 is use to establish a new general ledger at the beginning of each accounting year. The general ledger is subdivided into Balance Sheet and Income Statement "account classifications". (All versions of CPA-LEDGER use these two account classifications.) The classifications are: 21 . BALANCE SHEET ACCOUNT CLASSIFICATIONS . CURRENT ASSETS . INVESTMENT AND FUNDS . OPERATIONAL ASSETS . INTANGIBLE ASSETS . OTHER ASSETS . DEFERRED CHARGES . CURRENT LIABILITIES . LONG-TERM LIABILITIES . CONTRIBUTED CAPITAL . These three classifications . OTHER CONTRIBUTED CAPITAL . are replaced by capital & . RETAINED EARNINGS . drawing accounts for part- . ALL OTHER EQUITY ships & proprietorships. . INCOME STATEMENT ACCOUNT CLASSIFICATIONS . SALES . PURCHASES AND RELATED ACCOUNTS . OPERATING EXPENSES . OTHER REVENUES AND GAINS . OTHER EXPENSES AND LOSSES . EXTRAORDINARY GAINS . EXTRAORDINARY LOSSES . INCOME TAX EXPENSE . Not used for partnerships & proprietorships. Appendix D discusses each of the above classifications and informs you of the types of accounts included in each. Read the Appendix before using Option 1. WHAT OPTION 1 ASKS FOR. Read Chapter 2 for the standard messages and reminders that are part of Option 1. Also, before it starts processing information about specific accounts, Option 1 asks for your business name. Then, for each of the above account classifications, you will be asked to enter: . The number of accounts to be included in that classification. Your answer may be zero or a positive number. . The account titles, which may contain up to 30 characters. . For each account title, a "code" to indicate whether the account is a debit balance account or a credit balance account. The codes are "D" for debit and "C" for credit. 22 OPTION 1 SEQUENCE OF EXECUTION AND AN ILLUSTRATION. Following is an illustration that shows the Option 1 sequence of execution. Two account classifications are used for the illustration - "CURRENT ASSETS" and "INVESTMENT AND FUNDS". This is a good time to inform you of a very important REQUIREMENT of CPA-LEDGER. The requirement is that you should ALWAYS use the upper case for alphabetic characters. The illustration that follows uses lower case so that it will be easy for you to distinguish CPA-LEDGER requests from your input. This is for illustration ONLY! ALWAYS, ALWAYS press the "Caps-Lock" key on your keyboard before you start to use CPA-LEDGER. The illustration follows. ENTER YOUR BUSINESS NAME. ABC Wholesale, Inc. After you enter your business name (ABC Wholesale, Inc. in the illustration), Option 1 continues with: THE FOLLOWING QUESTIONS PERTAIN TO THE BALANCE SHEET. HOW MANY CURRENT ASSETS ACCOUNTS DO YOU WISH TO CREATE? 2 Assume that you enter "2", as shown above. Using your input, Option 1 will ask you to enter titles for the two Current Asset accounts. Also, for each of these accounts, you will be asked to enter a "D" if the account is a "debit" balance account or a "C" if it is a "credit" balance account, as follows: 23 YOUR Caps-Lock KEY SHOULD BE `ON' ENTER THE TITLE OF CURRENT ASSET ACCOUNT NUMBER 1 OF 2. Cash on Hand DOES THE ABOVE ACCOUNT NORMALLY HAVE A DEBIT BALANCE OR A CREDIT BALANCE? ANSWER BY ENTERING A `D' FOR `DEBIT' OR A `C' FOR `CREDIT'. d After you make these two entries, CPA-LEDGER displays your input, exactly as entered, and asks you to confirm whether or not it is correct. (You may have misspelled the account title, for example.) If you indicate that your input is incorrect, the previous two input requests are repeated. Otherwise, the new account is added to your general ledger and input requests and responses continue for the next Current Asset account: YOUR Caps-Lock KEY SHOULD BE `ON'. ENTER THE TITLE OF CURRENT ASSET ACCOUNT NUMBER 2 OF 2. Cash in ABC Bank DOES THE ABOVE ACCOUNT NORMALLY HAVE A DEBIT BALANCE OR A CREDIT BALANCE? ANSWER BY ENTERING A `D' FOR `DEBIT' OR A `C' FOR `CREDIT'. d Again, Option 1 asks you to confirm you input. Assuming that you find no errors, input for Current Assets is complete. Option 1 now turns to the next account classification, Investment and Funds. Assume that there are no accounts under this classification. The Option 1 request for input and the assumed response are shown below. HOW MANY INVESTMENT AND FUNDS ACCOUNTS DO YOU WISH TO CREATE? 0 24 Because the input is zero, Option 1 moves to the next account classification, Operational Assets. This process is repeated for each Balance Sheet and Income Statement account classification. Using the illustration above, Option 1 will create 16 general ledger accounts. Two are active (the ones that you identified) and 14 are inactive. (Don't forget to read Appendix D, which informs you of the types of accounts that should be included in each of the account classifications.) Two of the classifications display special messages. When the RETAINED EARNINGS classification appears, this message also appears if you enter 0 (zero) - "AT LEAST ONE RETAINED EARNINGS ACCOUNT IS REQUIRED". When PURCHASES appears this message is displayed - "IF YOU DO NOT WISH TO HAVE A COST OF GOODS SOLD SECTION ON YOUR INCOME STATEMENT, ENTER 0 (ZERO). REFER TO THE USER'S MANUAL FOR DETAILS." (See Appendix A.) ERROR MESSAGES. There are several errors that you might make while using Option 1. An example is an entry of 13 for the month. Another example is failure to make an entry when one is requested. If you make an input error, Option 1 signals that you should reenter your answer. Instructions for correct input will be displayed on the computer screen. PRINTED OUTPUT. Using the above illustration for Current Assets and Investment and Funds, the printout from Option 1 will look like this: (To conserve space, all of the "inactive accounts" are not shown. Three dots (...) indicate that you are to assume that other accounts are listed in the same fashion as the account immediately above the three dots.) 25 PAGE 1 RUN DATE 01/01/85 ABC WHOLESALE, INC. CHART OF GENERAL LEDGER ACCOUNTS ************************ BALANCE SHEET ACCOUNTS ************************ CURRENT ASSETS CASH ON HAND NORMAL BALANCE = DEBIT ACCOUNT NUMBER IS 3 CASH IN ABC BANK NORMAL BALANCE = DEBIT ACCOUNT NUMBER IS 7 INVESTMENT AND FUNDS (Note: "Account Classifications" are printed, even if you do not add any accounts in them. OPERATIONAL ASSETS See page 21. Also see Appendix D regarding the types of accounts that CPA-LEDGER expects INTANGIBLE ASSETS in each account classification, when you use either SETUP Option 1 or DAILY Option 8 - see . . paragraph immediately below.) . . . . Note that only accounts that you entered are printed. Also note the account numbers above. The first two accounts (inactive ones, added automatically) are Numbers 1 & 2, even though they are not printed. Accounts 4, 5 & 6 are also "inactive" ones. CPA-LEDGER automatically adds inactive accounts. Activate inactive accounts with Option 8 of the DAILY Menu. Get a list of all inactive accounts with Option 7 of the DAILY Menu. (Inactive accounts are for your future use, in the event you want to add new accounts to your general ledger.) Practice. Set-up procedures for this first practice section depend on the version of CPA-LEDGER that you have. First, let's talk about the CPA-LEDGER computer programs. If you have the (1) hard disk version or the (2) hard disk and floppy disk version, copy all files with ".BAS" (from your Program Disk) onto hard disk. If you have the two floppy disk version, merely place the "Program Disk" in the B: drive. Now let's provide for the general ledger files. If you have the hard disk version, do nothing. CPA-ledger will create the files on hard disk. If you have the (1) hard disk and floppy disk version or the (2) two floppy disk version, place a blank floppy disk in the A: drive. CPA-LEDGER will use the blank disk for the general ledger files. 26 Now, go to BASICA and give one of the following commands, depending on your version of CPA-LEDGER: RUN "SETUP" (if you have either the hard disk version or the hard disk and floppy disk version.) RUN "B:SETUP (if you have the two floppy disk version.) First, however, reread Chapter 2 so you will not forget about the standard messages and reminders that are not covered in this chapter. Also, read Appendix A, if you have not done so previously. Establish these accounts in the practice general ledger (by using Option 1 of the Setup Menu): BALANCE SHEET ACCOUNTS: . CURRENT ASSETS ACCOUNT TITLES (THREE ACCOUNTS): . CASH IN BANK . ACCOUNTS RECEIVABLE . MERCHANDISE INVENTORY . OWNER'S EQUITY ACCOUNT TITLES: . RETAINED EARNINGS for a corporation CAPITAL & DRAWING for a partnership or proprietorship INCOME STATEMENT ACCOUNTS: . SALES ACCOUNT TITLES (ONE ACCOUNT): . SALES Use the following as your company's name: ABC WHOLESALE, INC. for a corporation ABC WHOLESALE for a partnership or proprietorship Use this page as a reference while you are answering questions that will appear on your computer screen. When CPA-LEDGER asks you for the number of accounts for an account classification that is not shown above (i.e., any account classification other than CURRENT ASSETS, RETAINED EARNINGS, CAPITAL, DRAWING AND SALES), your input should be zero (0). If you do not understand, reread the "AN ILLUSTRATION" section of this chapter. One more point. As mentioned at the start of this chapter, illustrated input to CPA-LEDGER is in lower case letters. This is for clarity of illustration only. YOUR ALPHABETIC INPUT SHOULD ALWAYS BE IN UPPER CASE. Your printouts will look much better that way. Use 27 the "Caps-Lock" key on your keyboard. As mentioned in Chapter 1, you may use Option 1 more than one time. If you want to use Option 1 again, refer to Chapter 1 for the procedure that you should follow. Save the printout that will automatically come from Option 1. You will be asked to use both while you read the next two chapters. 27-1 CHAPTER 4 SETUP MENU - OPTION 2 WHAT OPTION 2 IS USED FOR. During the early stages of designing CPA-LEDGER, we decided to use a "computer trick" to solve a nagging problem. Here is the problem and our solution: . Many CPA-LEDGER computer programs need information that never changes. . An example is your business name, which is shown at the beginning of every CPA-LEDGER printout. Another example is the account number for beginning inventory, which is used while preparing the Income Statement. . The problem was to find some method for making this information available to CPA-LEDGER, automatically, whenever needed, without having to ask you to enter the data over and over again. . The "computer trick" is Option 2. It is used for permanently storing a few account numbers and your company name. Then, CPA-LEDGER automatically fetches this information, when needed, at a later time. WHAT OPTION 2 ASKS FOR. Option 2 asks you to enter, in the order listed, account numbers for: . Accounts Receivable. . Beginning Inventory. . Retained Earnings for corporations or capital & drawing accounts for proprietorships & partnerships. . Your business bank account(s). CPA-LEDGER also asks for your business name. For partnerships, it also asks how you wish to distribute profits to the partners. That's all. Once you enter this information, CPA-LEDGER takes over. The data is stored and is automatically made available to other computer programs, when needed. OPTION 2 SEQUENCE OF EXECUTION. Read Chapter 2 for the standard messages and reminders that are part of Option 2. 28 Use the printout from SETUP Option 1 to determine the account numbers that you will be asked to enter. Option 2 asks for the account numbers in the same order as the accounts are listed under "WHAT OPTION 2 ASKS FOR", above. After you enter an account number, Option 2 fetches the account title from the general ledger. Then, both the number and title are displayed for you to be sure that you entered the correct information. If you signal that your input is correct, the system moves to the next account. Otherwise, you are asked to reenter a number for the current account. Once you enter all of the account numbers, the last input is your company name. There is no computer printout from Option 2. AN ILLUSTRATION. Following is an illustration. Assume that: . Three (3) is the account number for Accounts Receivable. . The general ledger does not contain an account for Beginning Inventory. . Forty seven (47) is the account number for Retained Earnings. . You have two bank accounts. Their general ledger account numbers are 10 and 11. Account number information is obtained from the SETUP Option 1 printout. SETUP Option 1 input requests and your assumed responses are shown below. (Requests are in all upper case. Responses are either numeric or are in OTHER THAN upper case.) ENTER THE ACCOUNT NUMBER FOR ACCOUNTS RECEIVABLE. 3 ENTER THE ACCOUNT NUMBER FOR BEGINNING INVENTORY. 0 (Note: A message is displayed below this request, explaining the rules for omitting the Cost of Goods Sold section of the Income State- ment. See Appendix A.) ENTER THE ACCOUNT NUMBER FOR RETAINED EARNINGS. 47 (Note: CPA-LEDGER requires a valid account number. Zero (0) is not permitted.) 29 HOW MANY DIFFERENT CHECKING ACCOUNTS SHOULD BE INCLUDED IN THE GENERAL LEDGER? CAREFULLY NOTE THAT THE REQUESTED INPUT IS FOR THE NUMBER OF DIFFERENT CHECKING ACCOUNTS - NOT FOR THE NUMBER OF BANKS IN WHICH YOU HAVE THOSE CHECKING ACCOUNTS. FOR EXAMPLE, IT YOU HAVE TWO DIFFERENT CHECKING ACCOUNTS IN ONE BANK, YOUR INPUT SHOULD BE 2. IF YOU HAVE FIVE CHECKING ACCOUNTS IN TWO BANKS, YOUR INPUT SHOULD BE 5. ENTER YOUR INPUT NOW. 2 (Note: You may enter 0.) ENTER THE ACCOUNT NUMBER FOR BANK ACCOUNT NUMBER 1 OF 2. 10 (Note: You must enter a valid account number. Otherwise an error message appears. The message allows you to start over (with the "2" above) or to reenter another account number.) ENTER THE ACCOUNT NUMBER FOR BANK ACCOUNT NUMBER 2 OF 2. 14 ONE LAST INPUT IS REQUIRED BEFORE PROCESSING IS COMPLETE. THAT INPUT IS THE NAME OF YOUR COMPANY. IF THE NAME IS `ABC COMPANY', YOUR INPUT SHOULD BE `ABC COMPANY' (WITHOUT THE QUOTES). ENTER THE NAME NOW. ABC Wholesale, Inc. Note that zero (0) was used as the account number for Beginning Inventory. Zero is the input when a requested account number is not in your general ledger. If you enter zero as an account number, Option 2 requests that you verify that the requested account in not in your general ledger. If you indicate that you made an input error, Option 2 repeats the input request for that account. Otherwise, your input is accepted as correct. As mentioned, after you enter each of the account numbers (other than a zero), Option 2 displays the title of that account as well as the account number that you entered. Then you are asked to either accept or reject your input. Thus, you are given a chance to recover from input errors. Also, before asking for the account number for Retained Earnings, the system reminds you that at least one Retained Earnings account should have been established under Option 1. ERROR MESSAGES. There are several errors that you might make while entering data into Option 2. An example is an entry of 13 for a month. The system will not accept such input and will refuse to continue until you enter the proper range of values. 30 If input instructions are not on the screen, the system displays a message explaining your error and requests corrected input. These input errors are: ACCOUNT NUMBER IS TOO LARGE. If you enter an account number that is not included in your general ledger, Option 2 displays this message: THE ACCOUNT NUMBER THAT YOU ENTERED IS TOO LARGE. THE LARGEST ACCOUNT NUMBER IN THE GENERAL LEDGER IS (a number is shown). CONSULT A CURRENT LISTING OF THE ACCOUNTS AND TRY AGAIN. PRESS ANY KEY TO CONTINUE. After you press a key, Option 1 continues at the point where the error was made. AN INACTIVE ACCOUNT. If you enter an inactive account, the following appears on your screen. YOUR INPUT IS FOR AN INACTIVE ACCOUNT. ONLY ACTIVE ACCOUNTS CAN BE PROCESSED AT THIS TIME. CONSULT A PRINTOUT FROM OPTION 1 OF THE SETUP MENU. IF YOU MADE A MISTAKE IN OPTION 1 OF THE SETUP MENU AND THIS ACCOUNT IS NOT INCLUDED IN THE GENERAL LEDGER PRINTOUT, ANSWER `Y' TO THE QUESTION THAT FOLLOWS AND YOU WILL BE RETURNED TO THE SETUP MENU FOR USING OPTION 1 TO REENTER ALL OF YOUR ACCOUNT INFORMATION. UPON REENTERING YOUR ACCOUNT INFORMATION, BE VERY CAREFUL AND TRY TO AVOID MISTAKES. DO YOU WISH TO RETURN TO THE SETUP MENU TO START AGAIN? ENTER `Y' FOR `YES' OR `N' FOR `NO'. Option 2 continues processing, using your directions. SAME ACCOUNT ENTERED MORE THAN ONE TIME. If you duplicate your input, Option 2 displays another message, telling you that you entered the same account number a second time. The message gives you the option of continuing with Option 2 or of returning to the SETUP MENU for reentering all of your input by using Option 1 again. If you opt to return to the SETUP MENU, Option 2 first erases all of your data files, so you can start again with Option 1. 31 Practice. Use SETUP Option 2 to inform CPA-LEDGER of the account numbers and of your business name, as explained under "WHAT OPTION 2 ASKS FOR" and "AN ILLUSTRATION", above. Use the printout from SETUP Option 1 to identify the appropriate account numbers. The general ledger that you should use is the one that you created under the Practice section of Chapter 3. Save the practice general ledger. You will need it while reading Chapter 5. 32 CHAPTER 5 SETUP MENU - OPTIONS 3 AND 4 WHAT OPTION 3 IS USED FOR. SETUP Option 3 is for assigning opening balances to general ledger accounts that you established by using SETUP Option 1 (Chapter 3). Remember this. SETUP Option 1 starts each account with a zero balance. Therefore, it is NOT necessary to assign a zero to those accounts that should start with zero. Generally, these will be the Income Statement revenue, expense, gain, and loss accounts. WHAT OPTION 3 ASKS FOR. Option 3, as stated above, asks for opening balances that should be assigned to your general ledger accounts. It is your responsibility to: . Identify the ACCOUNT NUMBERS for accounts that should be assigned an opening balance. Account numbers and titles are shown on the SETUP Option 1 printout. . Calculate the opening balances. . Decide whether the each opening balance is a "debit" or "credit" amount. A SUGGESTED PROCEDURE. Before using Option 3, use the SETUP Option 1 printout for making a record of your opening balances. Write the amounts adjacent to the appropriate account number. That will facilitate your input. After recording amounts on the Option 1 printout, double check to be sure that the total value of all debits amounts equals the total value of all credit amounts. Save the Option 1 printout for future reference. OPTION 3 SEQUENCE OF EXECUTION. Read Chapter 2 for the standard messages and reminders that are part of Option 3. 33 Option 2 displays the following instructions and headings to assist you in entering your opening balances. ENTER YOUR DEBIT AND CREDIT ENTRIES BELOW. ALWAYS REMEMBER THAT: 1. EACH DEBIT OR CREDIT REQUIRES T-H-R-E-E INPUTS (THE ACCOUNT NUMBER; A `D' FOR `DEBIT' OR A `C' FOR CREDIT; AND THE AMOUNT). 2. YOU MUST PRESS THE RETURN KEY AFTER E-A-C-H OF THE THREE ABOVE INPUTS. 3. ALL MESSAGES WILL APPEAR IN THE UPPER PART OF THE COMPUTER SCREEN. 4. JOURNAL ENTRIES REJECTED IN THEIR ENTIRETY ARE TO BE REENTERED. 5. ENTER `Q` (FOR QUIT) AFTER ALL OPENING BALANCES ARE ENTERED. 6. YOUR COMPUTER'S CAPS-LOCK KEY MUST BE `ON'. ACCOUNT D=DEBIT DOLLAR NUMBER C=CREDIT AMOUNT Enter your entries under the appropriate headings. One line is used for each debit or credit. Up to 30 debits and 30 credits may be included in a single entry. Option 3 has no limit on the number of entries. AN ILLUSTRATION. Assume that the following opening entry is to be made, using Option 3: Account Number 3 Cash in Bank $ 5,000.10 Account Number 7 Accounts Receivable 12,450.00 Account Number 76 Retained Earnings $ 17,450.10 The opening entry would be entered in Option 3 as follows: 34 ACCOUNT D=DEBIT DOLLAR NUMBER C=CREDIT AMOUNT 3 D 5000.10 7 D 12450.00 76 C 17450.10 Q Notice that account titles are not used. Once the "Q" is entered, Option 3 displays the entire opening entry, with account numbers and titles. You are given an option of accepting or rejecting the entry. If you signal Option 3 that your input is correct, and if debit dollars equal credit dollars, the entry is posted to the general ledger and is printed. Otherwise, you are asked to reenter the incorrect entry, in correct form. ERROR MESSAGES. There are several errors that you might make while entering data into Option 3. An example is 13 for a month. If instructions for correct input are already displayed on the computer screen, Option 3 will not continue until to enter the proper range of values. If instructions are not on the screen, Option 3 displays a message to assist you in determining why your input is incorrect and in determining the action that you should take. These input errors are: NO INPUT IS GIVEN FOR ANY ACCOUNTS. In this event, Option 3 displays: YOU DID NOT ENTER ANY DEBITS OR CREDITS. INPUT IS REQUIRED BEFORE THE GENERAL LEDGER CAN BE POSTED. RETURN TO THE SETUP MENU, RERUN THIS OPTION, AND ASK THAT INSTRUCTIONS BE DISPLAYED ON THE COMPUTER SCREEN. PRESS ANY KEY TO CONTINUE. After you press a key, you are returned to the SETUP menu. INCORRECT INPUT FOR DOLLAR VALUES. See Chapter 6 (page 46) for this type of error and the message that is displayed. 35 ENTERING THE SAME ACCOUNT NUMBER MORE THAN ONE TIME. If you duplicate your input, this message appears: THE ACCOUNT NUMBER (NBR. a number is shown) THAT YOU SELECTED FOR POSTING WAS ASSIGNED AN OPENING BALANCE DURING THIS OR A PREVIOUS SESSION. ONLY O-N-E OPENING BALANCE PER ACCOUNT IS PERMITTED. PRESS ANY KEY TO CONTINUE. After you press a key, Option 3 resumes at the point where the error was made. AN INACTIVE ACCOUNT IS SELECTED. For this type of error, Option 3 displays: YOU SELECTED AN INACTIVE ACCOUNT FOR POSTING. THE ACCOUNT NUMBER THAT YOU SELECTED IS NUMBER (a number is shown). YOU WILL NOT BE ALLOWED TO ASSIGN AN OPENING BALANCE TO THIS ACCOUNT BECAUSE IT IS CLASSIFIED AS INACTIVE. REFER TO THE PRINTOUT OF THE CHART OF ACCOUNTS FROM SETUP OPTION 1. IF YOU DID NOT MAKE A MISTAKE IN YOUR INPUT, RETURN TO THE SETUP MENU AND SELECT ALL OPTIONS AGAIN, STARTING WITH OPTION 1. DO YOU WISH TO RETURN TO THE SETUP MENU? ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ If your answer is `Y', you will be returned to the SETUP menu. If you answer `N', Option 3 resumes at the point where the input error was made. ENTERING AN INCORRECT DEBIT OR CREDIT INDICATOR. While using SETUP Option 1, you assigned a "debit balance" or a "credit balance" for each account in the general ledger. Except for RETAINED EARNINGS and BANK ACCOUNTS, this account balance must be maintained while using Option 3. That is, if you indicated to Option 1 that Cash on Hand has a "debit balance", any amount assigned to Cash on Hand in Option 3 must be a debit amount. If you violate this rule, Option 3 displays: YOUR OPENING ENTRY IS INCORRECT. YOU REQUESTED TO DEBIT A CREDIT BALANCE ACCOUNT OR TO CREDIT A DEBIT BALANCE ACCOUNT. ACCORDING TO YOUR INPUT, YOU WANT TO (debit or credit is shown) THE ACCOUNT (the account title is shown). NONE OF YOUR ENTRY WILL BE POSTED UNTIL YOU CORRECT THE PREVIOUS DEBIT OR CREDIT. WOULD YOU LIKE TO REENTER THIS ENTIRE ENTRY FROM THE BEGINNING? IF YOUR ANSWER IS `N' FOR `NO', YOU WILL BE ASKED TO REENTER THIS DEBIT OR CREDIT, STARTING WITH THE A-C-C-O-U-N-T N-U-M-B-E-R. ENTER `Y' FOR `YES' OR `N' FOR `NO'. _ 36 If you answer `N', you will be requested to reenter the account number. If you answer `Y', you will be asked to reenter the entire entry, from the beginning. PRINTED OUTPUT. Using the above illustration, the printed output from Option 3 will look like this: PAGE 1 RUNDATE 01/01/85 ABC WHOLESALE, INC. OPENING GENERAL LEDGER ENTRIES ACCOUNT NUMBER ACCOUNT DEBIT CREDIT 3 CASH IN BANK 5,000.10 7 ACCOUNTS RECEIVABLE 12,450.00 76 RETAINED EARNINGS 17,450.10 OPENING ENTRY Practice. Get the printout that you obtained while following the instructions in the practice section of Chapter 3. Record these dollar amounts, on the printout, for the accounts identified below: . CASH IN BANK $ 1,350.00 DEBIT . ACCOUNTS RECEIVABLE 4,000.65 DEBIT . MERCHANDISE INVENTORY 8,400.00 DEBIT . RETAINED EARNINGS 13,750.65 CREDIT (Or, to the appropriate capital account if you have the partnership or proprietorship version of CPA-LEDGER) Use SETUP Option 3 to record the above data as an opening general ledger entry. Get the appropriate account numbers from the Option 1 printout. This chapter completes the discussion of the SETUP menu. You should erase your data disk (the one that you created in Chapter 3 - not the one received with CPA-LEDGER). We will not request that you use it again. The remaining chapters discuss the DAILY MENU. To get ready for the DAILY MENU, copy the practice general ledger (on your Documentation 36-1 disk, files with an extension of .FIL) onto (1) your hard disk (where you have CPA-LEDGER) if you have the hard disk only version of CPA-LEDGER, or (2) one of your own floppy disks if you have either the hard disk-floppy disk version or floppy disk only version of CPA-LEDGER. To copy the practice general ledger: . Follow this procedure if you have the hard disk only version of CPA-LEDGER: . Make sure you are in the directory where CPA-LEDGER is stored. . Place the Documentation Disk with the practice general ledger (the disk with files that have an extension of .FIL) into the A: drive. . Give this command - COPY A:*.FIL C:/V . Follow this procedure if you have either the hard disk-floppy disk version or the floppy disk only version of CPA-LEDGER: . If you have two floppy disk drives: . Place the Documentation Disk with the practice general ledger (the disk with files that have an extension of .FIL) in the B: drive. . Place one of your own blank disks into the A: drive. . Give this command - COPY B:*.FIL A:/V . If you have only one floppy disk drive: . Place the Documentation Disk with the practice general ledger (the disk with files that have an extension of .FIL) in the A: drive. . Make sure you have one of your own blank disks ready to receive the files that are about to be copied. . Give this command - COPY A:*.FIL B:/V You will be required to swap the disks several times as the copying proceeds.