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...

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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
egarding 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 e
or, 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
ief 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
equests. 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
ased 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: XXXXXXXXXXFax: XXXXXXXXXX
Fiscal start: XXXXXXXXXX
Earliest transaction date: XXXXXXXXXX
Fiscal end: XXXXXXXXXX
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: XXXXXXXXXX
- System: Do not allow transactions dated before XXXXXXXXXX
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
ackets beside the account.
(A) = Subgroup (S) = Subgroup total (H) = Heading (T) = Total (X) = Cu
ent 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 XXXXXXXXXX
1200 Accounts Receivable XXXXXXXXXX
1240 Advances Receivable 150
1300 Sterilized Needles 650
1320 Other Supplies 400
1420 Tattoo Designs XXXXXXXXXX
1440 Ink 1 030
1620 Computers and Video Monitors 6 500
1640 Sterilization Equipment 4 800
1660 Tattoo Equipment XXXXXXXXXX
1680 Store Fixtures and Displays 4 500
1690 Store XXXXXXXXXX
2100 Bank Loan $ 6 000
2150 Credit Card Payable XXXXXXXXXX
2200 Accounts Payable XXXXXXXXXX
2300 Vacation Payable 360
2310 EI Payable XXXXXXXXXX
2320 CPP Payable XXXXXXXXXX
2330 Income Tax Payable XXXXXXXXXX
2650 HST Charged on Sales (A XXXXXXXXXX
2670 HST Paid on Purchases (A XXXXXXXXXX
2850 Mortgage Payable XXXXXXXXXX
3560 D. Zines, Capital XXXXXXXXXX
$193 130 $193 130
5. Add foreign cu
ency. 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.
Answered 6 days AfterApr 04, 2022

Solution

Rochak answered on Apr 11 2022
8 Votes
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