The information provided in this test allows you to set up all ledgers for an Ontario company
Question:
The information provided in this test allows you to set up all ledgers for an Ontario company named DERMAL DECOR. Dermal Decor specializes in high quality aesthetic body art with sterile equipment. Before beginning any tattoo work, customers watch a brief consultation video from a dermatologist describing the process and cost of reversing their decisions. The new manager of the store buys tattoo designs and also creates custom designs for patrons with special requests. Most patrons choose from a stock of designs purchased from other artists. Her assistant completes much of the tattoo work. In stock designs are entered as inventory items, with prices based on size and complexity. Temporary tattoos are also available. The ink used for tattoos is charged to customers as inventory sales. The tattoo application and custom design work are charged as services on the basis of time. All ledgers are used.
1. Using Sage 50 Accounting,Start a new company file using the following information.
Company Name: Dermal Décor - (Your Name)
NOTE: Be sure to include your name as part of the company name so the reports you print and hand in to your instructor will be properly identified.
Address: 9999-A New St., Toronto, Ontario M5W 1G6
Phone: (647) 523-8191 Fax: (647) 525-8819
Fiscal start: 04-01-2017
Earliest transaction date: 04-01-2017
Fiscal end: 06-30-2017
Select: Start a new company
Select: Let me build the list of accounts myself after the company is created
Industry: Service
Select: I will update my tax information myself
Store company files in a new folder named DERMAL and use DERMAL as the file name.
2. 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 in SAGE 50
- View: Turn off Checklists and Daily Business Manager at startup
and after changing session date
Show Change Session Date at startup
- Transactions Turn on Confirmation Message Box
Company Settings:
- Information Business No: 872 197 639
- System: Do not allow transactions dated before 04-01-2017
Do not allow transactions in future
- Backup Backup frequency: Weekly; turn off automatic backups
- Features Use all features
- Forms Next Sales Invoice number 3110
Next Sales Quote number 32
Next Receipts number 356
Next Customer Deposits number 106
Next Purchase Order number 55
Next Direct Deposit -Employee number 68
Verify sequence number for all forms
Allow printing in batches for all forms
Date Format: MM, DD, YYYY. Use long date format on screen and in reports
3. Start accounts to match the following Chart of Accounts:
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.
Allow division allocations for all revenue and expense accounts.
1000 CURRENT ASSETS (H)
1040 Test Balance
1060 Undeposited Cash and Cheques
1080 Bank: CAD Chequing
1090 Bank: USD Chequing
1100 Bank: Credit Card
1200 Accounts Receivable
1240 Advances Receivable
1260 Purchase Prepayments
1280 Sterilized Needles
1320 Other Supplies
1390 TOTAL CURRENT ASSETS (T)
1400 INVENTORY (H)
1420 Tattoo Designs
1440 Ink
1490 TOTAL INVENTORY (T)
1600 PLANT & EQUIPMENT (H)
1620 Computers and Video Monitors
1640 Sterilization Equipment
1660 Tattoo Equipment
1680 Store Fixtures and Displays
1690 Store
1695 TOTAL PLANT & EQUIPMENT (T)
2000 CURRENT LIABILITIES (H)
2100 Bank Loan
2150 Credit Card Payable
2200 Accounts Payable
2240 Prepaid Sales and Deposits
2300 Vacation Payable
2310 EI Payable (A)
2320 CPP Payable (A)
2330 Income Tax Payable (A)
2340 Receiver General Payable (S)
2360 EHT Payable
2380 Medical Payable
2390 Tuition Payable
2400 CSB Plan Payable
2460 WSIB Payable
2650 HST Charged on Sales (A)
2670 HST Paid on Purchases (A)
2750 HST Owing (Refund) (S)
2800 TOTAL CURRENT LIABILITIES (T)
2810 LONG TERM LIABILITIES (H)
2850 Mortgage Payable
2890 TOTAL LONG TERM LIABILITIES (T)
3000 EQUITY (H)
3560 D. Zines, Capital
3600 Net Income (X)
3690 TOTAL EQUITY (T)
4000 REVENUE (H)
4020 Revenue from Sales
4060 Revenue from Design
4100 Sales Discounts
4390 TOTAL REVENUE (T)
5000 EXPENSES (H)
5010 Credit Card & Bank Fees
5015 Exchange Rate Differences
5020 Store Maintenance
5030 Adjustment Write-Off
5060 Cost of Goods Sold
5070 Cost of Services
5100 Purchase Discounts
5200 Freight Expense
5220 Supplies Used
5230 Interest Expense
5260 Utilities
5300 Wages
5310 EI Expense
5320 CPP Expense
5330 WSIB Expense
5360 EHT Expense
5380 Medical Expense
5400 Tuition Expense
5490 TOTAL EXPENSES (T)
Print the Chart of Accounts for reference.
4. Add account balances from the following Trial Balance: Post-Closing Trial Balance for Dermal Decor: April 1, 2017
1080 Bank: CAD Chequing $24 130
1090 Bank: USD Chequing 1 550
1100 Bank: Credit Card 2 200
1200 Accounts Receivable 2 800
1240 Advances Receivable 150
1300 Sterilized Needles 650
1320 Other Supplies 400
1640 Sterilization Equipment 4 800
1650 Computers and Video Monitors 6 500
1660 Tattoo Equipment 12 000
1680 Store Fixtures and Displays 4 500
1690 Store 120 000
1420 Tattoo Designs 10 800
1440 Ink 1 030
2100 Bank Loan $ 6 000
2150 Credit Card Payable 1 200
2200 Accounts Payable 4 500
2300 Vacation Payable 360
2310 EI Payable 145
2320 CPP Payable 390
2330 Income Tax Payable 625
2650 HST Charged on Sales (A) 1 890
2670 HST Paid on Purchases (A) 1 620
2850 Mortgage Payable 60 000
3560 D. Zines, Capital _______ 118 020
$193 130 $193 130
5. Add foreign currency. Allow transactions with United States suppliers in US dollars.
Use account 5015 to track exchange rate differences.
Enter 1.019 the exchange rate for Apr. 1, 2017. Display the reminder if the rate is one day old.
6. Edit Account classes:
For Undeposited Cash and Cheque, change the account class to Cash.
For Chequing Account: CAD, change the account class to Bank.
Enter 432 as the next cheque number and 607 as the next deposit slip number.
For Chequing Account: USD, change the account class to Bank. Enter 119 as the next cheque number.
Change the currency to USD and add $1 515 as the USD balance.
For Credit Card Account, change the account class to Credit Card Receivable.
For Accounts Receivable, change the account class to Accounts Receivable
For Inventory accounts, change the account class to Inventory
For Credit Card Payable, change the account class to Credit Card Payable.
For Accounts Payable, change the account class to Accounts Payable
For all expense accounts, change the account class to Expense.
7. Set up credit cards as follows:
Credit Cards Accepted:Credit Card Name: Wishful
Discount Fee: 3.5%
Linked Asset Account: 1100
Linked Expense Account: 5010
Credit Cards Used: Credit Card Name: Wishful
Linked Payable Account: 2150
Linked Expense Account: 5010
8. Enter Sales Taxes and Tax Codes
Tax - HST: Not Exempt, Not Taxable, Use 2670 to track tax paid on expenses.
Use 2650 to track taxes charged on revenue. Report on taxes
Code - H: Tax HST, Taxable, Rate 13%, Not included, Refundable
Code - HI: Tax HST, Taxable, Rate 13%, Included, Refundable
9. Enter the ledger settings.
Leave unused linked accounts blank. Allow account classes to change.
General: Linked Accounts Retained Earnings 3560
Current Earnings 3600
Payables Settings: Address Toronto, Ontario, Canada
- Linked Accounts Principal Bank Account for CAD 1080
Principal Bank Account for USD 1090
Accounts Payable 2200
Freight Expense 5200
Early Payment Purchase Discount 5100
Prepayments and Prepaid Orders 1260
Receivables Settings: Address Toronto, Ontario, Canada
- Options Aging periods: 15, 30 and 45 days;
No interest charges on overdue accounts;
Include invoices paid in last 30 days,
Use tax code H for new customers
- Discounts Payment terms: 1% after tax discount in 15 days; net 30 days
Line discounts are not used
- Comment On Client Invoices: Beauty can be skin deep.
- Linked Accounts Principal Bank Account for CAD 1060
Principal Bank Account for USD 1090
Accounts Receivable 1200
Default Revenue Leave blank
Early Payment Sales Discount 4100
Deposits and Prepaid Orders 2240
Payroll Settings:
Names -Incomes & Deductions: Income 1: Salary
Income 2: Commission
Income 3: No. Clients
Income 4: Tuition
Delete other Income names
Deduction 1: CSB Plan (Canada Savings Bond)
Delete other Deduction names
Names - Additional Payroll: Worker's Comp: WSIB
User-Defined Expense 1: Medical (this is an employee benefit)
(Payroll Settings Cont'd)
User-Defined Expense 2: Tuition
Entitlement 1: Sick Leave
Entitlement 2: Vacation
Delete other User-Defined Expense and Entitlement names
Incomes Regular and Overtime 1: Type - Hourly rate
Calculate tax, EI, Insurable Hours, CPP, EHT and vacation
Salary: Type - Income
Calculate tax, EI, Insurable Hours, CPP and EHT
Commission: Type - Income
Calculate tax, EI, CPP and EHT
No. Clients: Type - Piece rate; Unit of Measure - Clients
Calculate tax, EI, CPP, EHT and vacation
Tuition: Type - Benefit
Calculate tax, CPP and EHT
Deductions CSB Plan by amount
deduct after calculating tax, EI, CPP, EHT and vacation
Taxes EI Factor is 1.4
WSIB rate is 2.02
EHT factor is 0.98
Payroll Entitlements: Vacation: Track - 6%; Maximum 25 days; Do not clear at Year-end
Sick Leave: Track - 2.5%; Maximum 15 days; Clear at Year-end
Linked Accounts - Income Bank 1080
Vacation (Owed) 2300
Advances & Loans 1240
Use 5300 for Vacation Earned, Regular, Overtime, Salary,
Commission, No. Clients and Tuition
- Deductions: CSB 2400
- Taxes: EI (Payable) 2310
CPP (Payable) 2320
Tax (Payable) 2330
WSIB (Payable) 2460
EHT (Payable) 2360
EI (Expense) 5310
CPP (Expense) 5320
WSIB (Expense) 5330
EHT (Expense) 5360
The remaining Payroll linked accounts are not used. Leave blank.
- User-Defined Expenses: Payables - Medical 2380
Payables - Tuition 2390
Expenses - Medical 5380
Expenses - Tuition 5400
Inventory Settings:Options: Sort by description
Profit evaluation by markup
Do not allow inventory to drop below zero
- Linked Accounts Adjustment Write-off 5030
Division Settings: Change the name of Project to Division
- Allocation Allocate by percentages - Payroll & Other Transactions
Warn if division allocation is not complete
Allow access to Allocate field using Tab key
10. Create the following supplier accounts with historical information:
Name (Contact), Address Phone/Fax Options, Tax, Account
Full Spectrum (Manny Colors) Tel: (716) 662-6682 Terms: 2/15, n/30 (after tax)
189 Indigo Way, Buffalo, New York, USA 14209 Fax: (716) 662-6164 Tax Code: H
Currency: USD
Medi-Specs (I.N. Spector) Tel: (613) 774-7109 Terms: net 15 (after tax)
512 Monitor Ct., Ottawa, ON K6T 7F3 Fax: (613) 774-7799 Tax Code: H
Skin Decals, Inc. (Art) Tel: (905) 526-7191 Terms: 2/5, n/15 (after tax)
899 Creative Way, Oakville, ON L5R 2V7 Tax Code: H
Tax ID: 887 210 092
Historical Supplier Invoices and Payments
Name Terms Date Invoice/Chq Amount
Full Spectrum 2/15, n/30 after tax Mar 15/17 FS-3903 $970 USD
(990 CAD)
Skin Decals, Inc. 2/5, n/15 (after tax) Mar 25/17 SD-621 $3 800
Chq 398 -1 800
Mar 30/17 SD-808 1 510
Balance owing $3 510
Grand Total $4 500
11. Create the following customer accounts with historical information:
The credit limit for all customers is $5 000. The terms for all customers are 1/15, n/30.
The tax code for all customers is H. If information is not provided, leave fields blank.
Customer accounts:
Name (Contact), Address Phone/Fax
Hart Bridal Party (Bonnie Hart) Tel: (647) 762-6712
Preferred Price List Fax: (647) 762-9991
55 Blissful Blvd., Toronto, ON M1P 7D3
Stan Stoner Tel: (416) 592-9001
110 Abbey Rd., Toronto, ON M8C 9A1
Historical Customer Invoices and Payments
Name Terms Date Invoice/Chq Amount
Stan Stoner 1/15, n/30 Mar 28/17 3104 $4 300
Mar 28/17 Chq 32 -1 500
Balance owing $2 800
12. Enter the following employee information: Use the linked payroll accounts.
Employer pays medical premiums for employees (user-defined expense and employee benefit).
Dyes has her tuition paid as a taxable benefit. Both employees have 100% their paycheques
deposited directly to their bank accounts.
Painter has just been hired so there is no historical data for her.
Personal Magenta Dyes Carmine Painter
Address 345 Ochre Blvd. 22 Crimson Ave.
Toronto, ON M4H 4R2 Toronto, ON M3C 3W1
(416) 882-6234 (647) 598-7177
SIN# 624 514 774 621 628 999
Birth Date Apr. 15, 1974 Dec. 23, 1980
Date of Hire Feb. 1, 2007 Mar. 23, 2017
Taxes
Tax Table Ontario Ontario
Federal Claim $21 054 $10 527
Provincial Claim $16 834 $9 104
(Entire claim amounts are subject to indexing)
Additional Federal Tax $100
Deduct EI & CPP (EI Factor) Yes, Yes (1.4) Yes, Yes (1.4)
Historical Income Tax $1 202
Historical EI Contributions $167
Historical CPP Contributions $474
Income
Advances Historical Amount $150
Benefits (medical plan) $10 $20
Benefits Historical Amount $130
Vacation 6% retained 3 weeks (0%)
Vacation Owed $360.00
Salary (do not use) $2 200 bi-monthly
Salary Hours per Period 80 (Salary hours)
Regular Wage $18.00/hr (do not use)
Hours per Period 35 (Regular hours)
Regular Wage Historical Amount $8 190
Overtime wage $27.00/hr (do not use)
Overtime Wage Historical Amount $702
Commission (do not use) 1% of revenue
No. Clients $5 (do not use)
No. Clients Historical Amount $780
Tuition $50 (do not use)
Tuition historical amount $650
Pay Periods per Year 52 24
Deductions
CSB Deductions per Pay $50.00 $50.00
CSB Historical Contributions $650.00
WSIB and Other Expenses
WSIB Rate 2.02% 2.02%
Medical per pay (Historical Medical) $10.00 ($130.00) $20.00
Tuition per pay (Historical Tuition) $50 ($650.00)
Magenta Dyes Carmine Painter
Entitlements (Percentage for tracking, maximum days)
Sick Leave 2.5%, 15 days max; clear 2.5%, 15 days max; clear
Historical Sick Leave days 4
Vacation 6.0%, 25 days max; not cleared
Historical Vacation days
Direct Deposit (100% of paycheques deposited)
Branch No., Institution No. and Account numbers 38648, 223, 45567 16678,221, 2435644
T4 and RL-1 Reporting
Historical EI Insurable Earnings $9 672
Historical Pensionable Earnings $10 452
13. Set up a payroll authority.
Start a new supplier record for the Receiver General for Canada as the payroll authority for Income Tax, EI and CPP. Leave the remaining supplier fields blank.
Settings -Payroll: Remittance and suppliers-Receiver General for Canada
Remitting frequency - Monthly
End of remittance period - April 15, 2017.
14. Set up job categories.
Create two job categories named Sales and Other.
Persons in the Sales category are salespersons. Persons in the Other category are not salespersons.
Assign the employee Painter to the Sales category. Assign the employee Dyes to the Other category.
Select Painter as the salesperson for all sales.
15 Make the following inventory accounts:
Variance accounts will not be required. Leave the variance linked account field blank.
Allow account classes to change. Customers pay HST on all inks, designs, tattoo services and custom design work.
Ink tubes are purchased in lots of 10 tubes per box and stocked and sold as individual tubes.
Note: Web pricing is the same as regular pricing.
Inventory & Services: Reg (Pref) Opening Linked Accounts
Description No. Unit Min Price (Price) Qty Value Asset Rev C.O.G.S.
Ink - Permanent Colour 101 10 tubes/box 50 $10 ($8) 80 $320 1440 4020 5060
Ink - Permanent Outline 102 10 tubes/box 20 10 (8) 50 250 1440 4020 5060
Ink - Temporary Colour 201 10 tubes/box 50 8 (7) 60 300 1440 4020 5060
Ink - Temporary Outline 202 10 tubes/box 20 7 (5) 40 160 1440 4020 5060
Design - Small 301 each 10 25 (20) 100 1 400 1420 4020 5060
Design - Medium 302 each 10 60 (50) 100 2 900 1420 4020 5060
Design - Large 303 each 10 100 (90) 100 6 500 1420 4020 5060
Design - Special Order 304 each Custom Pricing 1420 4020 5060
Service No. Unit Reg Price (Pref Price) Tax Rev Expense
Tattoo application 501 session $80 ($70) HST 4060 5070
Design Creation 502 each Custom pricing HST 4060 5070
16. Create two divisions starting April 1, 2017.
1. Sales 2. Services There are no balances forward. Select:
Warn of allocation is not completed and select: Status completed.
17. Back up your work.
Continue with the original working copy, DERMAL.SAI. Finish entering the history.
18. Change the session date to April 8, 2017 Add the shortcuts you need and then enter the following transactions:
NOTE: Be sure to use the correct bank account for each transaction. If you have set up the accounts correctly, the default account will be correct. Enter Carmine Painter as the salesperson for all sales.
Cheque Purchase Invoice #LG-35887 Dated April 2, 2017
From Lee Gull, $2 373, including HST, for legal fee to draw up legal waiver form for business. Paid by cheque #432. Create new Group expense account 5240 Legal Expenses. Allocate 20% of expense to Sales Division and 80% to Services. Use Quick Add for the new supplier.
Purchase Order #55 Dated April 3, 2017
Shipping Date April 11, 2017
From Skin Decals, Inc.
20 Designs - Small ($13 ea) $260.00
10 Designs - Medium ($27 ea) 270.00
10 Designs - Large ($58 ea) 580.00
Courier Freight Charge 40.00
HST Paid 149.50
Invoice Total $1 299.50
Terms: 1/10, net 30.
Edit the default prices and terms.
Cash Receipt #356 Dated April 4, 2017
From Stan Stoner, cheque #2773 for $2 757 in full payment of invoice #3104, taking into account 1% sales discount of $43 for early payment.
Purchase Invoice #NN-601 Dated April 4, 2017
From Ned's Needles, $250, plus 13% HST for sterilized needles that fit tattoo gun. Invoice total $282.50. Terms: 1/15, net 30. Use Quick Add for new supplier.
Payment Cheque #433 Dated April 4, 2017
To Skin Decals, Inc., $3 479.80 in payment of invoices #SD-621 and SD-808, including $30.20 discount for early payment, and $200 as deposit for purchase order #55. Total cheque amount is $3 679.80.
Purchase Invoice #FS-4972 Dated April 5, 2017
From Full Spectrum,
4 boxes Ink - Permanent Colour ($40 ea) $160.00 USD
4 boxes Ink - Permanent Outline ($45 ea) 180.00 USD
4 boxes Ink - Temporary Colour ($45 ea) 180.00 USD
4 boxes Ink - Temporary Outline ($40 ea) 160.00 USD
HST Paid 88.40 USD
Invoice Total $768.40 USD
Terms: 2/15, net 30
The exchange rate is 1.001 (the exchange rate difference amount may not be allocated)
Edit the default prices.
Cheque Copy #119 Dated April 6, 2017
To Full Spectrum, $970 USD in full payment of invoice #FS-3903. The exchange rate is 0.990. Paid from Bank: USD Chequing Account.
Sales Quote #32 Dated April 6, 2017
Delivery Date April 15, 2014
To Hart Bridal Party (love knot & heart design tattoos for 10 members of wedding party)
10 Ink - Temporary Colour $7 /tube
10 Ink - Temporary Outline 5 /tube
20 Designs - Small 20 each
10 Tattoo applications 70 /session
HST Charged 13 %
Terms: 1/15, net 30.
Sales Invoice #3110 Dated April 6, 2017
To Wanda Wonder (Use Quick Add for new Regular customer)
15 Ink - Permanent Colour $ 10 /tube
6 Ink - Permanent Outline 6 /tube
2 Designs - Medium 60 each
1 Design - Large 100 each
5 Tattoo applications 80 /session
HST Charged 13 %
Terms: 1/15, net 30.
Allocate 100% of sales to Sales Division and 100% of services to Services Division.
Memo #1 Dated April 6, 2017
Bonnie Hart has accepted the sales quote to Hart Bridal Party and is placing an order. Convert Sales Quote #32 to Sales Order #32 using the same shipping date, prices and terms.
Cash Receipt #357 Dated April 7, 2017
From Hart Bridal Party, cheque #188 for $400 as deposit #106 to accept sales order #32.
Deposit Slip #607 Dated April 7, 2017
Deposit two cheques received in the past week. Total deposit is $3 157.
Cash Sales Invoice #3111 Dated April 8, 2017
To One-time cash customers
12 Ink - Permanent Colour $10 /tube
5 Ink - Permanent Outline 6 /tube
6 Ink - Temporary Colour 8 /tube
2 Ink - Temporary Outline 7 /tube
15 Designs - Small 25 each
15 Tattoo applications 80 /session
HST Charged 13 %
$2 019.31 received in cash.
Allocate 100% of sales to Sales Division and 100% of services to Services Division.
Memo #2 Dated April 8, 2017
Pay hourly employee, Magenta Dyes for 35 hours regular work.
Recover $50 advance. Dyes should be paid for serving 10 clients (No. Clients piece rate pay).
Allocate 30% of payroll expenses to Sales and 70% to Service. Issue deposit slip #68.
Hints: Use Payroll cheque run. Accept: Payroll Tables are out of date
19. Back up the data files. Continue with the file DERMAL.SAI.
Change the session date to April 15, 2017. Enter the following transactions:
Purchase Invoice #SD-986 Dated April 11, 2017
To fill Purchase Order #55
From Skin Decals, Inc.
20 Designs - Small ($13 ea) $260.00
10 Designs - Medium ($27 ea) 270.00
10 Designs - Large ($58 ea) 580.00
Courier Freight Charge 40.00
HST Paid 149.50
Invoice Total $1 299.50
Terms: 1/10, net 30 (new payment terms).
Allocate 100% of freight expense to Sales Division.
Memo #3 Dated April 11, 2017
Several boxes of supplies and inventory were damaged after a prolonged power failure. The following items were not usable and should be written off:
Sterilized needles $120
Other supplies $80
Tattoo gun $250
30 tubes Ink - Permanent Colour accept cost price
20 tubes Ink - Temporary Colour accept cost price
Allocate 100% of the cost of equipment and supplies to the Services division and 100% of the cost of damaged ink inventory to the Sales division. Create new General Ledger Group expense account 5210 Damaged Supplies and Equipment. (Hint: two journal entries are required.)
Cash Receipt #358 Dated April 11, 2017
From Wanda Wonder, cheque #344 for $901.67 in payment of invoice #3110, taking into account 1% sales discount of $9.11 for early payment.
Cash Receipt #359 Dated April 11, 2017
From Stan Stoner, cheque #2789 for $1 000 as deposit #107 in prepayment for tattoo work to be completed over several weeks.
Sales Invoice #3112 Dated April 13, 2017
To Stan Stoner
4 Designs - Large $100 each
10 Ink - Permanent Outline 10 /tube
40 Ink - Permanent Colour 10 /tube
20 Tattoo application 80 /session
HST Charged 13 %
Terms: 1/15, net 30
Allocate 100% of sales to Sales Division and 100% of services to services Division. Accept message.
Sales Invoice #3113 Dated April 15, 2017
To Hart Bridal Party, to fill sales order #32
10 Ink - Temporary Colour $7 /tube
10 Ink - Temporary Outline 5 /tube
20 Designs - Small 20 each
10 Tattoo application 70 /session
HST Charged 13 %
Terms: 1/15, net 30.
Allocate 100% of sales to Sales Division and 100% of services to services Division.
Credit Card Sales Invoice #3114 Dated April 15, 2017
To One-time credit card customers
20 Ink - Permanent Colour $10 /tube
9 Ink - Permanent Outline 10 /tube
8 Ink - Temporary Colour 8 /tube
4 Ink - Temporary Outline 7 /tube
10 Designs - Medium 60 each
20 Tattoo application 80 /session
HST Charged 13 %
Invoice total $2917.66 paid by Wishful.
Allocate 100% of sales to Sales Division and 100% of services to Services Division.
Purchase Order #56 Dated April 15, 2017
Delivery Date: April 28, 2014
From Full Spectrum, one tattoo gun to replace the damaged equipment. The cost of the new gun is $320 plus HST $41.60. Invoice total $361.60 (USD). Terms: 2/15, net 30. The exchange rate
is 0.985.
Purchase Invoice # MS-903 Dated April 15, 2017
From Medi-Specs, $260 plus $33.80 HST for routine site and equipment inspection. Invoice total $293.80. Terms: net 15. Create new Group expense account 5250 Licenses and Inspections. Allocate 40% of the expense to Sales Division and 60% to the Services Division.
Deposit Slip #608 Dated April 15, 2017
Deposit two cheques received in the past week totaling $1 901.67 and $2 019.31 in cash that consisted of 23 ´ $5, 12 ´ $10, 14 ´ $20, 10 ´ $50, 10 ´ $100 and $4.31 in coins.
Total deposit amount was $3 920.98.
Memo #4 Dated April 15, 2017
Pay hourly employee, Magenta Dyes for 35 hours regular work. Recover $50 advance.
Dyes took one day sick leave during the week. Dyes should be paid for serving 11 clients (No. Clients piece rate pay). Issue deposit slip #69. Allocate 40% of payroll expenses to Sales and 60% to Service. Ignore messages
Memo #5 Dated April 15, 2017
Pay salaried employee, Carmine Painter $2 200 her regular bi-monthly salary. Calculate and include sales commission for Painter. Painter took one day sick leave during the pay period (allow negative days to accrue). Issue deposit slip #70. Allocate 30% of payroll expenses to Sales and 70% to Service.
Memo #6 Dated April 15, 2017
Transfer $4 000 from Bank: Credit Card to Bank to CAD Chequing Account.
Transfer $2 000 USD from Bank: CAD Chequing Account to Bank: USD Chequing to cover upcoming payments. The exchange rate is 0.985.
Bank Debit Memo #RCU-4433 Dated April 15, 2017
From Rainbow Credit Union, $600 for loan payment including $100 interest and $500 principal. Total amount withdrawn from CAD Chequing bank account was $600 Allocate 40% of the interest expenses to the Sales Division and 60% to the Services Division.
Memo #7 Dated April 15, 2017
Make payroll tax remittance to the Receiver General for the pay periods ending April 15, 2017. Include remittance for income tax, EI and CPP. Issue cheque #434.
20. Bank reconciliation.
Set up account 1080 for account reconciliation.
Use the following linked accounts. Create new accounts if necessary.
Income: Interest 4280 Revenue from Interest
Expense1: Bank Charges 5010 Bank & Credit Card Fees
Expense2: NSF fee 5010 Bank & Credit Card Fees
Adjustment: 5005 Reconciliation Adjustments
Reconcile the account using April 1 start date and April 15 as the statement end date and the reconciliation date.
There are two outstanding prior transactions
Source Description Date Amount
606 Deposit slip Mar 29 Deposit $2 600
431 Skin Decals, Inc. Mar 30 Payment $1 800
(Hint: after adding the first outstanding transaction, click Insert Outstanding again to access a new transaction line.)
Use the following bank statement details to complete the reconciliation.
Withdrawals deposits balance
Mar. 15 Balance forward 23 330.00
Mar. 29 Deposit 606 2 600.00
Mar. 30 Cheque 431 - 1 800.00
Apr. 1 Interest on account 15.00
Apr. 1 Cheque 432 - 2 373.00
Apr. 4 Cheque 433 - 3 679.80
Apr. 8 Deposit 607 3 157.00
Apr. 8 Payroll transfer Ref #68 467.40
Apr. 15 Deposit 608 3 920.98
Apr. 15 Debit memo - 600.00
Apr. 15 Transfer from 04328-476199 4000.00
Apr. 15 Transfer to 04328-59990 1 970.00
Expert Answer:
1 Setting Up Dermal Decor in Sage 50 Accounting Heres how to set up Dermal Decor in Sage 50 Accounting based on the provided information 1 Create a New Company File Open Sage 50 Accounting Click File ... View the full answer
