Final Project 2 Computerized Accounting with Sage 50 Level 2 SI2O Copyright © 2022 Project Code: SI1O v7-0 Project 2 Released: July 2012 Revised: January 20, 2022 Computerized Accounting with Simply...

Sage 50


Final Project 2 Computerized Accounting with Sage 50 Level 2 SI2O Copyright © 2022 Project Code: SI1O v7-0 Project 2 Released: July 2012 Revised: January 20, 2022 Computerized Accounting with Simply Level 2 (SI2O) Final Project 2 Page 1 Computerized Accounting with Sage 50 Level 2 The Dog House 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 Simply Level 2 (SI2O) Final Project 2 Page 2 PROJECT SPECIFICATIONS The information provided in this test allows you to set up all ledgers for an Ontario company named THE DOG HOUSE. The Dog House specializes in sales of large purebred and pedigreed dogs. In addition, they sell cages or dog houses, and high quality dog food. Some of the dog food is purchased from a supplier in the United States. The manager of the store provides some basic dog grooming services while the assistant works mostly in store sales and caring for the animals that are for sale. Two divisions—sales and services—are set up to allocate expenses and revenues. All ledgers are used. 1. Using Sage 50 Accounting, create a new company file using the following information: Company Name: The Dog House – (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: 460 Barque St. London, Ontario, N9L 4B6 Phone: Fiscal start: (519) 523-8191 04-01-2024 Fax: (519) 525-8819 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: Retail Select: I will update my tax information myself. Store company files in a new folder named DOGHOUSE and use DOGHOUSE 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, customers & other records Show list buttons - View Turn off Checklists and Daily Business Manager at startup and after changing session date Show Change Session Date at startup - Transaction Turn on Confirmation Message Box Company Settings: - Information Business No: 388 123 909 - 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 All features used - Forms Next Sales Invoice number 1121 Next Sales Quote number 45 Next Receipts number 1522 Next Customer Deposits number 36 Next Purchase Order number 1001 Next Direct Deposit Stubs- Employee number 34 Computerized Accounting with Simply Level 2 (SI2O) Final Project 2 Page 3 Verify sequence number for all forms Allow printing in batches for all forms Date Format MM-DD-YYYY; Use long date format on the screen and in reports 3. Create accounts to match the following Chart of 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. Allow division allocations for all revenue and expense accounts Edit the current earnings account THE DOG HOUSE: Chart of Accounts 1000 CURRENT ASSETS (H) 1050 Test Balance 1060 Undeposited Cash & Cheques 1080 Bank: CAD Chequing 1090 Bank: USD Chequing 1100 Bank: Credit Card 1200 Accounts Receivable 1240 Advances Receivable 1260 Purchase Prepayments 1280 Food Supplies 1300 Other Supplies 1390 TOTAL CURRENT ASSETS (T) 1400 INVENTORY (H) 1420 Purebred Dogs 1440 Dog Food 1460 Dog Houses 1490 TOTAL INVENTORY (T) 1500 PLANT & EQUIPMENT (H) 1550 Computer/Cash Register 1580 Store Fixtures and Cages 1590 TOTAL PLANT & EQUIPMENT (T) 2000 CURRENT LIABILITIES (H) 2100 Bank Loan 2150 Credit Card Payable 2200 Accounts Payable 2250 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) 2400 RRSP Payable 2420 Medical-MSP Payable 2460 WSIB Payable 2650 HST Charged on Sales (A) 2670 HST Paid on Purchases (A) 2750 HST Owing (Refund) (S) 2900 TOTAL CURRENT LIABILITIES (T) 3000 OWNER’S EQUITY (H) 3560 A. Katz, Capital 3600 Net Income (X) 3690 TOTAL OWNER’S EQUITY (T) 4000 REVENUE (H) 4020 Revenue from Sales 4050 Revenue from Services 4100 Sales Discounts 4200 Freight Revenue 4390 TOTAL REVENUE (T) 5000 EXPENSES (H) 5010 Bank & Credit Card Fees 5015 Exchange Rate Differences 5020 Cleaning and Maintenance 5030 Adjustment Write-Off 5040 Item Assembly Costs 5060 Cost of Goods Sold 5070 Cost of Services 5100 Purchase Discounts 5200 Freight Expense 5220 Dog Food Used 5240 Rent 5260 Utilities 5280 Veterinary Consultation 5300 Wages 5310 EI Expense 5320 CPP Expense 5330 WCB Expense 5400 Medical-MSP Expense 5420 Car Expenses 5490 TOTAL EXPENSES (T) Computerized Accounting with Simply Level 2 (SI2O) Final Project 2 Page 4 Print the Chart of Accounts for reference. 4. Add account balances from the following Trial Balance: THE DOG HOUSE Post-Closing Trial Balance: April 1, 2024 1080 Bank: CAD Chequing $24 289 1090 Bank: USD Chequing 860 (CAD) 1100 Bank: Credit Card 2 200 1200 Accounts Receivable 1 500 1280 Food Supplies 540 1300 Other Supplies 400 1420 Purebred Dogs 5 200 1440 Dog Food 3 500 1460 Dog Houses 3,600 1550 Computer/Cash Register 6 500 1580 Store Fixtures and Cages 4 500 2150 Credit Card Payable $ 1 200 2200 Accounts Payable 3 800 2310 EI Payable 81 2320 CPP Payable 217 2330 Income Tax Payable 661 3560 A. Katz, Capital 47 130 $53 089 $53 089 Print the Trial Balance for referen ce. 5. Add foreign currency. Allow transactions with United States suppliers in US dollars. Use account 5015 to track exchange rate differences. Enter 1.20 as the exchange rate for April 1, 2024. Display the reminder if the rate is one day old. 6. Edit the Account Classes. Undeposited Cash & Cheques. Change the account class to Cash. CAD Chequing account. Change the account class to Bank.