Challenge Exercise 04 C4-1, Balloons Store Conversion to Sage 50 Accounting (using COMPANY, RECEIVABLES and PAYABLES) 1) Use the Wizard to create a new company from scratch. The trial balance provided shows only postable accounts. It is expected that you will use the techniques shown in Sarah's Kitchen Stores (Chapter 4A) to: a) Add Headings (H), Postable accounts ( A and G) with Subtotal (S) accounts and Total (T) accounts. You should have a minimum of 3 S-type accounts. b) Create Linked accounts for the COMPANY, PAYABLES and RECEIVABLES modules. c) Select Class Options required. d) Add Vendor and Customer invoice information. Balloons Store is assumed to be a sole proprietorship business. It sells various kinds of party balloons. This review assignment does not use all accounts that may be used by a typical business - it uses only the RECEIVABLES (Customers), PAYABLES (Vendors) and COMPANY modules. Balloons Store does not use the budget feature, credit cards or shippers. When all data has been entered, turn the related modules to Ready. a) The business using a calendar fiscal year has the following important dates: Opened for business Sep 12, 1997 Year-end this year Dec 31, 2026 Year-end last year Dec 31, 2025 Manual books stopped Apr 30, 2026 This will be the conversion date the manual accounting records will be transferred to Sage 50 Accounting. b) The business is: Balloons Store, Your Name, 936 Alfred St., Sarnia, Ontario N7V 3K7. Remember, your name must appear on all reports. c) Business Type is Retail and Business number is Z345. d) Forms use the next number on: Invoices (342) Cheques (384) All other forms start at 1 , except for: Receipts (\# blank) Customer Deposits (\# blank) Direct Deposit Stubs (\# blank) e) Discounts are calculated before tax for both customer and vendor invoices, with Customer early payment terms 2/10 net 30 . f) The computer financial statements should be set up with the following sections: Current Assets Owner's Equity Capital Assets Revenue Current Liabilities Cost of Goods Sold Long Term Liabilities Store Expenses The normal account balances from the Apr 30, 2026 Balloons Store Trial Balance are listed below. Use appropriate account classes in setting up your accounts. g) Tax Classes, Codes and Rates: HST rate is 13%, HST registration \# R1234 and HST is refundable. HS code is HST at 13% HI code is HST at 8% h) Customize the Journals as shown in Exercise 4A-9. j) Set the related modules, accounts, vendors and customers to READY mode