Final Project 1 Computerized Accounting with Sage 50 Level 2 SI2O Copyright © 2022 Project Code: SI1O v7-0 Project 1 Released: July 2012 Revised: January 2022 Computerized Accounting with Sage 50...

Sage 50


Final Project 1 Computerized Accounting with Sage 50 Level 2 SI2O Copyright © 2022 Project Code: SI1O v7-0 Project 1 Released: July 2012 Revised: January 2022 Computerized Accounting with Sage 50 Level 2 (SI2O) Final Project 1 Page 1 Computerized Accounting with Sage 50 Level 2 Dermal Décor 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, Receivable, Payroll, and Inventory ledgers for a small company • Record transactions • Print reports TIME REQUIRED You will require 10 hours to complete this project. MATERIALS REQUIRED To complete this project, you will require: • Windows 10 • Sage 50 Accounting 2021 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 Balance Sheet 20 marks Income Statement 10 marks Employee Summary Report 5 marks Inventory Summary Report 5 marks Computerized Accounting with Sage 50 Level 2 (SI2O) Final Project 1 Page 2 PROJECT SPECIFICATIONS 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, create 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: 04-01-2024 Earliest transaction date: 04-01-2024 Fiscal end: 06-30-2024 Select: Create 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 04-01-2024 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 Computerized Accounting with Sage 50 Level 2 (SI2O) Final Project 1 Page 3 Date Format: MM, DD, YYYY. Use long date format on screen and in reports 3. Create 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 RRSP 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. Computerized Accounting with Sage 50 Level 2 (SI2O) Final Project 1 Page 4 4. Add account balances from the following Trial Balance: Post-Closing Trial Balance for Dermal Decor: April 1, 2024 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 1420 Tattoo Designs 10 800 1440 Ink 1 030 1620 Computers and Video Monitors 6 500 1640 Sterilization Equipment 4 800 1660 Tattoo Equipment 12 000 1680 Store Fixtures and Displays 4 500 1690 Store 120 000 2100 Bank Loan $ 6 000 2150 Credit Card Payable 1 200 2200 Accounts Payable 4 674 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 117 846 $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 1.19 the exchange rate for Apr. 1, 2024. 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.