The following hands-on test is designed to be presented to students after completing all chapters of the
Question:
The following hands-on test is designed to be presented to students after completing all chapters of the textbook. All modules are used. Students are expected to enter data for one month and then make adjustments and accruals at month-end (including a bank reconciliation and inventory adjustment).
Students will probably need most of a 2-hour class to complete the test depending upon their comfort level.
The test can be modified as follows:
- Direct students to add a new employee.
- Add a NSF cheque for students to adjust in the Bank Rec. Journal.
- Correction of an error in posting.
- Add reconciliation for HST using the HST report.
These modifications obviously take more time.
Sage 50 Premium Accounting 2018.0
TEST #2-Comprehensive Test
This test is based on all modules (except Time & Billing) of Sage 50 Accounting. The company is called Bottles 4 All, which plans to sell, to sports stores across Canada, plastic drink bottles for runners, cyclists and other recreational activities.
Bottles 4 All began business on August 1, 2023 and has selected a July 31, 2024 fiscal year-end. Bottles 4 All has negotiated with 2 suppliers of drink bottles and will start by selling 3 types of bottles to customers. The company has 2 salaried employees who are to be paid 24 times a year on the 2nd and 4th Friday of every month and both will contribute to a medical plan (each pay $11.00).
All the modules are ready to use and the following have been entered:
All G/L accounts
2 vendor accounts (Royal Plastics and PVC Plastics)
2 employees (Wendy Toste and Dustin Chad)
3 inventory items (running, cycling and recreational)
Customers will need to be set up when sales are made. The company will not print cheques, invoices or statements. The Shipped by field will not be used.
Bottles 4 All is EHT (Employee Health Tax) exempt.
Record the following transactions for the month of August:
Aug 2 The owner (Jasmine Ganpat) had the bank transfer (by bank memo) $10,000.00 from a personal savings account to the business bank account to start the business.
Aug 2 Negotiated a 5-year bank loan of $50,000.00 at an annual interest rate of 4.5% with the Loyal Bank. The money was deposited in the bank account today.
Aug 2 Received invoice 402 for $1,200.00 plus HST (8%) from Captain Insurance, (Please use Quick Add), for a one-year business insurance policy commencing Aug 1, 2023. Issued cheque #1001 to pay this invoice. The amount should be charged to Prepaid Supplies, Insurance, etc.
Aug 3 Purchased office furniture and fixtures for $3,500.00 plus HST and computer equipment for $2,500.00 plus HST from The Business Place, (Please use Quick Add). Invoice 6488 was for $6,000.00 plus HST and was paid with cheque #1002.
Aug 4 Purchased 1,000 cycling drink bottles at $3.00 each plus HST and 1,000 running drink bottles at $3.50 each plus HST from PVC Plastics. Invoice 5196 was for $6,500.00 plus HST, terms 30 days.
Aug 7 Sold 300 cycling drink bottles to Cycle Path, (Please use Quick Add), on invoice 1001 for $4.50 each. The total invoice was for $1,350.00 plus HST. Terms: 2%/10, net 30 days.
Aug 9 Cycle Path returned 30 defective bottles from the Aug 7 sale. Credit memo referencing invoice 1001 was issued for $135.00 plus HST.
Aug 10 Purchased 2,000 recreational drink bottles from Royal Plastics on invoice 7103 for $2.50 each plus HST, terms 30 days.
Aug 10 Sold 500 running drink bottles for $4.80 each plus HST, and
750 recreational drink bottles for $3.50 each plus HST,
to Universal Sports, (Please use Quick Add), on invoice 1002 for a total of $5,025.00 plus HST. Terms: Net 30 days.
Aug 11 Paid the 2 employees with the next two cheques (1003 and 1004). ). If prompted with Payroll Deduction Dates, continue by saying “Yes”. Please use the deductions below by clicking on the following icon to “Enter Payroll Taxes Manually”
Item | Chad, Dustin | Toste, Wendy |
CPP | $81.88 | $76.93 |
EI | $29.34 | $27.71 |
TAX | $253.17 | $233.57 |
Aug 17 Received $1,348.65 from Cycle Path, their cheque 2177 in payment of our invoice 1001 and credit memo referencing invoice 1001.
Aug 21 Purchased 1,000 new large size type of recreational drink bottle. The bottle will be assigned unit number Re-2 and is expected to sell for $4.00. The business plans to keep a minimum of 200 bottles on hand. Invoice 7239 from Royal Plastics, with terms of 30 days, was for 1,000 bottles at $3.00 each plus HST.
Aug 23 Returned to Royal Plastics 50 large size bottles that were on purchased Aug 21. Received credit memo 7239CM for $150.00 plus HST.
Aug 24 Issued cheque #1005 to pay PVC Plastics for invoice 5196 in full.
Aug 25 Paid the two employees with the next two cheques (#1006 and #1007). If prompted with Payroll Deduction Dates, continue by saying “Yes”. Please use the deductions below clicking on the following icon to “Enter Payroll Taxes Manually”
Item | Chad, Dustin | Toste, Wendy |
CPP | $81.88 | $76.93 |
EI | $29.34 | $27.71 |
TAX | $253.17 | $233.57 |
Aug 25 Retail sale to Student’s Name (Your first and last name must appear):
2 running drink bottles for $7.00 each,
2 cycling drink bottles at $6.00 each, and
2 recreational drink bottles at $5.00 each. (Re-1)
All prices are plus HST.
Student’s Name paid with the Universal Credit Card.
Aug 30 Issued next cheque to pay Royal Plastics invoice 7103 in full.
Aug 31 Recorded depreciation on the Furniture and Fixtures of $100.00, and depreciation of $80.00 on the Computer Equipment.
Aug 31 Accrued interest on the bank loan was $187.50 for August and will be paid on September 2.
Aug 31 The Loyal Bank statement indicated an August 31, 2023 balance of $40,246.69. A review of the statement showed that cheque 1008 (Royal Plastics) was outstanding at the bank. Also $70.16 of bank charges are not recorded in the G/L. Everything else has been posted at the bank. . Note: Ignore the Statement Start Date. Be sure your Statement End Date and Reconciliation Date are both August 31, 2023.
Save to Excel the following reports for August:
- Trail Balance, no zero balance accounts.
- All Journal Entries, no corrections.
b) General Journal Entries, date order, no corrections.
c) Income Statement year-to-date.
d) Account Reconciliation Status Report (Detail) for account 1100 Bank Account Chequing.
The single Excel file containing the reports listed above, and your completed .CAB file are to be submitted into your Dropbox.
Discovering Advanced Algebra An Investigative Approach
ISBN: 978-1559539845
1st edition
Authors: Jerald Murdock, Ellen Kamischke, Eric Kamischke