Final Project 1
Computerized Accounting with Sage 50 Level 1
Final Project 1 Computerized Accounting with Sage 50 Level 1 CAA4 Copyright © 2022 Project Code: CAA4 v6-0 Project 1 Released: January 12, 2022 Revised: Computerized Accounting with Sage 50 Level 1 (CAA4) Final Project 1 Page 2 Computerized Accounting with Sage 50 Level 1 Chris’s Welding 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 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 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 1 Page 3 PROJECT SPECIFICATIONS The information provided in this test allows you to set up the General, Payables and Receivables ledgers for an Ontario company named CHRIS’S WELDING owned and run by Chris George, a master welder. He performs all kinds of welding jobs for individuals as well as companies. George has contracted you to set up his company to use Sage 50 Accounting for general ledger, accounts receivable and accounts payable. DO EACH OF THE FOLLOWING TASKS IN ORDER. 1. Using Sage 50 Accounting, create a new company file using the following information: Company Name: Chris’s Welding - (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: 33 Maple St. Windsor, Ontario N9S 4B6 Phone: (519) 653-8383 Fax: (519) 653-7700 Fiscal start: 07-01-2024 Earliest transaction date:07-01-2024 Fiscal end: 12-31-2024 Select: Let me build the list of accounts myself after the company is created Industry: Service Store company files in a new folder named WELDING and use WELDING as the file name. Select: I will update my tax information myself 2. Working from the Company module window, change 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 Employee & 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: 342 121 190 Company System Settings Do not allow transactions dated before 07-01-2024 Do not allow transactions in future Company Backup Settings Backup frequency: Weekly; turn off automatic backups Company Features Settings Company does not use notes, quotes, orders, packing slips and project Company does business in French and English Company Forms Settings Next Client & Sales Invoice number: 121 Next Receipts number: 297 Company Date Format Settings Month, day, year. Use long date format on the screen and in reports Computerized Accounting with Sage 50 Level 1 (CAA4) Final Project 1 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. CHRIS’S WELDING Chart of Accounts 1000 CURRENT ASSETS (H) 1050 Test Balance 1080 Bank: Chequing Account 1100 Bank: Credit Card 1200 Accounts Receivable 1290 Welding Supplies 1390 TOTAL CURRENT ASSETS (T) 1400 CAPITAL ASSETS (H) 1420 WeldingTorches 1450 Computers 1480 Other Welding Equipment 1500 Vehicle 1550 Shop 1590 TOTAL CAPITAL ASSETS (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 EQUITY (H) 3560 Chris George, Capital 3600 Net Income (X) 3690 TOTAL OWNERS’ EQUITY (T) 4000 REVENUE (H) 4020 Revenue from Services 4100 Sales Allowances 4200 Sales Discounts 4390 TOTAL REVENUE (T) 5000 EXPENSES (H ) 5020 Advertising 5030 Bank and Credit Card Fees 5040 Cleaning and Maintenance 5060 Hydro Expense 5220 Insurance Expense 5240 Interest Expense 5260 Telephone Expense 5270 Payroll Service Fees 5280 Welding Supplies Used 5590 TOTAL EXPENSES (T) Computerized Accounting with Sage 50 Level 1 (CAA4) Final Project 1 Page 5 4. Add account balances from the following Trial Balance: CHRIS’S WELDING Post-Closing Trial Balance July 1, 2024 1080 Bank: Chequing Account $12 150 1100 Bank: Credit Card 200 1200 Accounts Receivable 5 000 1290 Welding Supplies 900 1420 Welding Torches 3 800 1450 Computers 1 500 1480 Other Welding Equipment 4 200 1500 Vehicle 9 000 1550 Shop 150 000 2100 Bank Loan $ 6 000 2200 Accounts Payable 1 600 2250 Credit Card Payable 1 100 2650 HST Charged on Services 950 2670 HST Paid on Purchases 750 2850 Mortgage Payable 99 000 3560 Chris George, Capital ________ 78 850 $187 500 $187 500 Hint: Remember to use account 1050 Test Balance for out of balance amounts. 5. Change Account Classes: Bank: Chequing Account: Change the account class to Bank and enter 201 as the next cheque number. Bank: Credit Card: Change the account class to Credit Card Receivable. Credit Card Payable: Change the account class to Credit Card Payable. Expense Group accounts: Change the account class to Expense. 6. Set up credit cards as follows: Credit Cards Accepted: Credit Card Name: Chargit Currency CAD Linked Asset Account 1100 Discount Fees: 3% Linked Expense Account: 5030 Credit Cards Used: Credit Card name: Chargit 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 Use 2650 to track taxes charged on revenues, Report on taxes Code – H: Tax HST, Taxable, Rate 13%, Not included, Refundable Code – HI: Tax HST, Taxable, Rate 13%, Included, Refundable Computerized Accounting with Sage 50 Level 1 (CAA4) Final Project 1 Page 6 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 Windsor, Ontario, Canada - Options Aging periods: 30, 60 and 90 days Calculate all discounts after tax for one time suppliers - Linked Accounts Principal Bank Account 1080 Accounts Payable 2200 Freight Expense and Early Payment Purchase Discount: leave blank Prepayments and Prepaid Orders 2200 Receivables: Address Windsor, Ontario, Canada -Options Aging periods: 5, 15 and 30 days; No interest charges on overdue accounts; Include invoices paid in last 30 days; Use tax code H as default for new customers - Discounts Terms: 2% discount in 5 days (after tax), net in 15 days Line discounts not used - Comment On sales invoices: "Where fire meets steel." - Linked accounts: Principal Bank Account 1080 Accounts Receivable 1200