Computerized Accounting with Sage 50 Level 1 Fairness Enterprise...

Computerized Accounting with Sage 50 Level 1

Fairness Enterprise

INTRODUCTION

This project will test your understanding of the Sage 50 Accounting application and your ability to

apply the features of this application. You will be using many of the skills that you have acquired

throughout the course to set up the accounts for a small business and record typical transactions.

OBJECTIVES

The objectives of this project are to:

Set up the General, Payable, and Receivable ledgers for a small company

Record transactions

Print reports

TIME REQUIRED

You will require 5 hours to complete this project.

MATERIALS REQUIRED

To complete this project, you will require:

Windows 10

Sage 50 Accounting 2019

MARKING

The project will be marked out of 100. Individual marks for requirements are shown below.

Marks will be deducted if you ask anyone for help. The instructor will only answer questions

regarding the meaning and interpretation of a step. You may refer to your textbook.

If the project is not completed within the given time frame, 2 marks per additional hour will be

deducted. For each typographical error, a further 0.5 mark deduction will be made.

Journal Entries 60 marks

Comparative Balance Sheet 20 marks

Income Statement 10 marks

Supplier Aged Summary 5 marks

Customer Aged Summary 5 marks

Computerized Accounting with Sage 50 Level 1 (CAA4)

Final Project 2 Page 3

PROJECT SPECIFICATIONS

The information provided in this test allows you to set up the General, Payables and Receivables

ledgers for a Nova Scotia company named FAIRNESS ENTERPRISE, owned and run by G.

Steinem. There are no employees in this company. Fairness Enterprise offers consulting services to

medium and large corporations wishing to improve the quality of work performed by their

employees. Money works on a contractual basis with most companies, charging a daily rate for

services, but she also offers workshops that she developed on a variety of related topics.

COMPLETE EACH OF THE FOLLOWING TASKS IN ORDER.

1. Using Sage 50 Accounting, create a new company file using the following information:

Company Name: Fairness Enterprise

Address: 449 Motivate Crescent

Halifax, Nova Scotia

P3A 1C5

Phone: (902) 662-8610 Fax: (902) 662-2992

Fiscal start: 10-01-2022

Earliest transaction date: 10-01-2022

Fiscal end: 12-31-2022

Select: Let me build the list of accounts myself after the company is created

Industry: Service

Store company files in a new folder named FAIRNESS and use Fairness as the file name.

Select: I will update my tax information myself

2. Working from the Company module, change the default settings if necessary to include the

following:

User Preferences Options Use Accounting Terms

Automatically save changes to Suppliers, Clients and Other Records

Show list buttons

User Preferences View Turn off Checklists and Daily Business Manager at startup and

after changing session date

Turn off Employees & Payroll, Inventory & Services, Project, and

Time & Billing

Turn on Change Session Date at startup

User Preferences Transaction Turn on confirmation message Box

Company Information Settings Business No: 612 335 566

Company System Settings Do not allow transactions dated before 10-01-2022

Do not allow transactions in future

Backup frequency: Weekly; turn off automatic backups

Company Features Settings Company does not use quotes, orders, packing slips

Company does business in French and English

Company Forms Settings Next Client &Sales Invoice number: 8133

Next Receipts number: 97

Company Date Format Settings Month, day, year. Use long date format on screen and in reports.

Computerized Accounting with Sage 50 Level 1 (CAA4)

Final Project 2 Page 4

3. Create accounts to match the following Chart of Accounts.

Edit the Current Earnings account.

Account types are shown in brackets beside the account.

(A) = Subgroup (S) = Subgroup total (H) = Heading (T) = Total (X) = Current Earnings

All other accounts (unmarked) are Group accounts.

FAIRNESS ENTERPRISE

Chart of Accounts

1000 CURRENT ASSETS (H)

1040 Test Balance

1080 Chequing Bank Account

1100 Credit Card Bank Account

1200 Accounts Receivable

1260 Office Supplies

1280 Workbooks

1390 TOTAL CURRENT ASSETS (T)

1400 PLANT, PROPERTY & EQUIPMENT (H)

1420 Computer

1450 Copier/Fax/Scanner

1480 Office Furniture

1500 Vehicle

1550 Office

1590 TOTAL PLANT,PROPERTY &

EQUIPMENT (T)

2000 CURRENT LIABILITIES (H)

2100 Bank Loan

2200 Accounts Payable

2250 Credit Card Payable

2650 HST Charged on Services (A)

2670 HST Paid on Purchases (A)

2750 HST Owing (Refund) (S)

2790 TOTAL CURRENT LIABILITIES (T)

2800 LONG TERM LIABILITIES (H)

2850 Mortgage Payable

2890 TOTAL LONG TERM LIABILITIES (T)

3000 OWNER'S EQUITY (H)

3560 Steinem, Capital

3600 Net Income (X)

3690 TOTAL OWNER'S EQUITY (T)

4000 REVENUE (H)

4020 Revenue from Consulting

4100 Sales Allowances

4200 Sales Discounts

4390 TOTAL REVENUE (T)

5000 EXPENSES (H)

5020 Advertising

5030 Credit Card & Bank Fees

5040 Cleaning & Maintenance

5060 Hydro Expense

5220 Insurance Expense

5240 Interest Expense

5260 Supplies Used

5280 Telephone Expense

5300 Workbooks Used

5320 Payroll Service Fees

5590 TOTAL EXPENSES (T)

.

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4. Add account balances from the following Trial Balance:

FAIRNESS ENTERPRISE

Post-Closing Trial Balance: October 1, 2022

1080 Chequing Bank Account $10 140

1100 Credit Card Bank Account 2 000

1200 Accounts Receivable 1 500

1260 Office Supplies 550

1280 Workbooks 2 500

1420 Computer & Copier 5 000

1450 Copier/Fax/Scanner 2 500

1480 Office Furniture 4 200

1500 Vehicle 19 000

1550 Office 75 000

2100 Bank Loan $13 000

2200 Accounts Payable 1 200

2250 Credit Card Payable 2 800

2650 HST Charged on Services 1 440

2670 HST Paid on Purchases 650

2850 Mortgage Payable 50 000

3560 Steinem, Capital ________ 54 600

$123 040 $123 040

Hint: Remember to use account 1040 Test Balance for out of balance amounts.

5. Change Account Classes:

Chequing Bank Account: Change the account class to Bank and enter 1275 as the next cheque number.

Credit Card Bank Account: Change the account class to Credit Card Receivable.

Accounts Receivable: Change account class to Accounts Receivable.

Current Assets: Change account class of accounts #1260 and 1280 to current asset.

Plant, Property & Equipment: Change the account class to Capital Assets.

Accounts Payable: Change the account class to Accounts Payable

Credit Card Payable: Change the account class to Credit Card Payable.

Long term liabilities: Change Mortgage Payable class to Long Term Debt.

Expense Group accounts: Change the account class to Expense.

6. Set up credit cards:

Credit Cards Accepted: Credit Card Name: ChargeAll

Linked Asset Account: 1100

Discount Fee: 3%

Linked Expense Account: 5030

Credit Cards Used: Credit Card Name: ChargeAll

Linked Payable Account: 2250

Linked Expense Account: 5030

7. Enter Sales Taxes and Tax Codes (do not enter accounts to track PST)

Tax - HST: Not Exempt, Not Taxable, Use 2670 to track tax paid on expenses

Computerized Accounting with Sage 50 Level 1 (CAA4)

Final Project 2 Page 6

Use 2650 to track taxes charged on revenues, Report on taxes

Code - H: Tax HST, Taxable, Rate 15%, Not included, Refundable

Code - HI: Tax HST, Taxable, Rate 15%, Included, Refundable

Enter Ledger Settings: Allow account classes to change.

General (Accounts): Budgeting should be turned off

- Linked Accounts Retained Earnings 3560

Current Earnings 3600

Payables: Address Halifax, Nova Scotia, Canada

- Options Aging periods: 30, 60 and 90 days

Calculate all discounts after tax

- Linked Accounts Principal Bank Account 1080

Accounts Payable 2200

Early Payment Purchase Discount and Freight Expense: leave blank

Prepayments and Prepaid Orders 2200

Receivables: Address Halifax, Nova Scotia, Canada

- Options Aging periods: 10, 20 and 30 day

No interest charges on overdue accounts

Include invoices paid in last 30 days

Use tax code H as the default for new customers

- Discounts Terms: 2 % discount (after tax) in 10 days, net 20 days

Line discounts not used

- Comment On sales invoices: "Together we make it work."

- Linked Accounts Principal Bank Account 1080

Accounts Receivable 1200

Default Revenue 4020

Freight Revenue: leave blank

Early Payment Sales Discount 4200

Deposits and Prepaid Orders 1200

8. Create the following supplier accounts.

Add the historical information provided.

Name (Contact), Address Phone/Fax Terms, Tax, Account

Creative Signs- (Thynk Bright) Tel: (902) 494-3377 Terms: net 15

29 Adzone Lane, Halifax, NS P3C 2D2 Fax: (902) 494-3333 Tax Code: HI

Tax ID: 282 735 113 Expense Account:

E-mail: b..s@creativenet.com 5020 Advertising

Supplier since: 09/01/2006

Northern Bell Tel: (902) 310-5221 Terms: net 10

339 Speakers Avenue, Halifax, NS P3E 5G2 Tax Code: H

Web site: www.bell.ca Expense Account:

Supplier since: 05/01/2005 5280 Telephone Expense

Receiver General for Canada (Margot Taxit) Tel: (902) 821-8186 Terms: net 1

Summerside Tax Centre, Summerside PE C1N 6L2 Tax Code: No tax

Web: www.cra-arc.gc.ca (tax exempt - yes)

Supplier since: 05/01/2005

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Unlimited Bytes (Flo P. Driver) Tel: (902) 494-5319 Terms: net 30

8 Octal Way, Liverpool, NS P3A 2K4 Fax: (902) 494-7229 Tax Code: H

Tax ID: 383 736 343 Expense Account:

E-mail: e..e@creativenet.com 1420 Computer

Supplier since: 09/01/2007

Historical Supplier Invoices and Payments

Name Terms Date Invoice/Chq Amount

Creative Signs net 15 Sep 21/22 CS-2111 $285

Northern Bell net 10 Sep 28/22 NB-21187 $115

Unlimited Bytes net 30 Sep 12/22 UB-3321 $1 400

Sep 19/22 Chq 1270 -1 000

Sep 28/22 UB-4110 400

Balance Owing $800

Grand Total $1 200

9. Create the following customer accounts with historical information:

The credit limit for all customers is $5,000. The terms for all customers are 2/10, n/20.

The tax code for all customers is H. If information is not provided, leave fields blank.

Name (Contact), Address Phone/Fax Revenue Account

Antsy Fancy ( Art Cheep) Tel: (902) 493-5201 4020 Revenue from

Consulting

35 Decoration Lane, Halifax, NS P3C 2E1

E-mail: a..p@hotmail.com

Customer since: 03/01/2007

Peilo Textiles Contact: Fab Rick Tel: (902) 492-6118 4020

15 Material Road, New Gasglow, NS P3A 4F3 Fax: (902) 492-3911

Customer since: 06/01/2014

Ruffer Mfg. ( Makin Trubbel) Tel: (902) 491-5002 4020

888 Production Ct., Dartmouth, NS P3A 7A2 Fax: (902) 491-4912

Web site: www.ruffer.com

Customer since: 04/15/2007

Historical Customer Invoices and Payments

Name Terms Date Invoice/Chq Amount

Antsy Fancy 2/10, n/20 Sep 25/22 8128 $ 1 500

Sep 27/22 Chq 3115 -500

Balance owing $1 000

Ruffer Mfg. 2/10, n/20 Sep 22/22 8119 $500

Grand Total $1 500

Computerized Accounting with Sage 50 Level 1 (CAA4)

Final Project 2 Page 8

10. Back up your files in your data folder.

Continue with the original working copy of your data files, FAIRNESS.SAI.

Finish entering the history.

11. Change the session date to October 8, 2022. Create shortcuts or change modules and enter the

following transactions.

12. NOTE: Deposits and withdrawals, except credit card transactions use chequing bank account.

Sales Invoice #8133 Dated Oct. 2, 2022

To Peilo Textiles, $3 200 plus $480 HST, for two day "Motivation for Performance" workshop for

management, including workbooks. Invoice total $3 680. Terms 2/10, n/20.

Credit Card Purchase Invoice # CS-2832 Dated Oct. 4, 2022

From Creative Signs, $552, including HST to design and copy advertising brochures. Paid by

ChargeAll.

Payment Cheque #1275 Dated Oct. 5, 2022

To Northern Bell, $75 partial payment of account. Reference invoice #NB-21187.

Sales Invoice #8134 Dated Oct. 6, 2022

To Antsy Fancy, $720 plus $108 HST for 30 workbooks for upcoming workshops. Invoice total $828.

Terms 2/10, net 20.

Memo #1 Dated Oct. 7, 2022

Prepare an adjusting entry for workbooks used in workshops and sold to clients. The value of

workbooks remaining in the storeroom is now $1 000.

Cash Purchase Invoice # MR-1369 Dated Oct. 7, 2022

From Memory Restoration Inc., $380, plus $57 HST for restoring contents of hard disk drive after

computer crash. Purchase invoice total $437 paid by cheque #1276. Use Quick Add for the new

supplier. Create new Group expense account 5100 Computer Maintenance.

Cash Receipt #97 Dated Oct. 8, 2022

From Antsy Fancy, cheque #3199 for $1 811.44 in full payment of account including $16.56 discount

for early payment. Reference invoices #8128 and 8134. KINDLY SOLVE THIS

Memo #2 Dated Oct. 8, 2022

Peilo Textiles received a price reduction of $400 for delays in starting the workshop resulting from

technical problems. The price change was agreed at the time of the workshop. Adjust Sales Invoice

#8133 to Peilo Textiles. The total amount billed should be adjusted to $2 800 plus $420 HST.

13. Change the session date to October 15, 2022. Enter the following transactions:

Bank Debit Memo #WCU-77386 Dated Oct. 8, 2022

From Workers Credit Union, pre-authorized bi-weekly payroll for Ms. Money.

Wages and payroll expenses $4,000

Payroll service fees 60

HST paid on payroll services 9

Total withdrawal $4,069

Create new Group expense account 5290 Wages and Payroll Expenses

Cash Receipt #98 Dated Oct. 10, 2022

From Peilo Textiles, cheque #139 for $3 155.60 in payment of account, including $64.40 discount

for early payment. Reference invoice #8133 and Memo #2.

Purchase Invoice #UB-5001 Dated Oct. 11, 2022

From Unlimited Bytes, $300 plus $45 HST, for purchase and installment of new DVD-RW drive

to upgrade computer system. Invoice total $345. Terms net 30.

Bank Memo #WCU-7111 Dated Oct. 12, 2022

From Workers Credit Union, $3 155.60 for NSF cheque from Peilo Textiles. Reference invoice

#8133 and cheque #139. Peilo Textiles has been notified of the unpaid account.

Memo #3 Dated Oct. 13, 2022

Edit the customer record for Peilo Textiles to change the payment terms to net 10 days. Reduce the

credit limit for the customer to $500.

Cash Receipt #99 Dated Oct. 14, 2022

From Peilo Textiles, certified cheque #RB-77553 for $3 220 to replace NSF cheque and settle

account. Reference invoice #8133 and Bank Memo # WCU-7111.

Sales Invoice #8135 Dated Oct. 14, 2022

To Ruffer Mfg., $1 200, plus $180 HST for presentation to entire workforce. Invoice total $1 380.

Terms 2/10, n/20.

Credit Card Sales Invoice #8136 Dated Oct. 14, 2022

To Ruffer Mfg., $1 100, plus $165 HST for sale of 50 workbooks used with presentation. Invoice

total $1 265. There is no discount on credit card sales. Paid by ChargeAll.

Cash Receipt #100 Dated Oct. 14, 2022

From Ruffer Mfg, cheque #39002 for $500 in payment of account. Reference invoice #8119.

Memo #4 Dated Oct. 15, 2022

Prepare an adjusting entry for workbooks used in workshops and sold to clients. The value of

workbooks remaining in the storeroom is now $400.

Cheque Purchase Invoice #QQ-88221 Dated Oct. 15, 2022

From Quiq Qopy, $1 200 for extra copies of workbooks, plus $180 HST. Invoice total $1 380.

Paid by cheque #1277. Use Quick Add for the new supplier.

Purchase Invoice #NB-36994 Dated Oct. 15, 2022

From Northern Bell, $150, plus $22.50 HST for one month of telephone and Internet service.

Invoice total $172.50. Terms: net 10.

Computerized Accounting with Sage 50 Level 1 (CAA4)

Final Project 2 Page 10

Bank Memo #WCU-8277 Dated Oct. 15, 2022

From Workers Credit Union, $900 for regular monthly bank loan payment. This amount includes

$800 principal and $100 interest.

14. Print and assemble the following reports in the order indicated and hand in to your instruct

tor:

Note: Make sure your name appears as part of the company name at the top of each report.

1. Journal Entries for all journals from October 1 to October 15, 2022

Show corrections.

2. Comparative Balance Sheet (with percent difference) at October 1, 2022 and October 15, 2022

3. Income Statement from October 1 to October 15, 2022

4. Supplier Aged Summary Report

5. Customer Aged Summary Report