This project will test your understanding of the Sage 50 Accounting application and your ability to...

         

  

 

 

 

 

 

 

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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 Balance Sheet Income Statement Employee Summary Report Inventory Summary Report Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 60 marks 20 marks 10 marks 5 marks 5 marks Page 1 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: Phone: Fiscal start: Earliest transaction date: Fiscal end: 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. -View: Change the default settings if necessary to include the following: 2. User Preferences: - Options - Transactions -Information - System: 9999-A New St., Toronto, Ontario M5W 1G6 (647) 523-8191 Fax: (647) 525-8819 - Backup - Features - Forms 04-01-2024 04-01-2024 06-30-2024 Use Accounting Terms Automatically save changes to Suppliers, Clients and Other Records Show list buttons in SAGE 50 Turn off Checklists and Daily Business Manager at startup and after changing session date Show Change Session Date at startup Turn on Confirmation Message Box Company Settings: Business No: 872 197 639 Do not allow transactions dated before 04-01-2024 Do not allow transactions in future Backup frequency: Weekly; turn off automatic backups Use all features 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 (SI20) Final Project 1 Page 2 3. Date Format: MM, DD, YYYY. Use long date format on screen and in reports 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 Print the Chart of Accounts for reference. 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) Computerized Accounting with Sage 50 Level 2 (SI20) Final Project 1 Page 3 4. 5. 6. 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 2 200 1100 Bank: Credit Card 1200 Accounts Receivable 2 800 1240 Advances Receivable 150 650 400 10 800 1 030 6 500 4 800 12 000 4 500 120 000 1300 Sterilized Needles 1320 Other Supplies 1420 Tattoo Designs 1440 Ink 1620 Computers and Video Monitors 1640 Sterilization Equipment 1660 Tattoo Equipment 1680 Store Fixtures and Displays 1690 Store 2100 Bank Loan 2150 Credit Card Payable 2200 Accounts Payable 2300 Vacation Payable 2310 EI Payable 2320 CPP Payable 2330 Income Tax Payable 2650 HST Charged on Sales (A) 2670 HST Paid on Purchases (A) 2850 Mortgage Payable 3560 D. Zines, Capital 1 620 $193 130 $ 6 000 1 200 4 674 360 145 390 625 1 890 60 000 117 846 $193 130 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. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 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 $1 350 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. Page 4 7. 8. 9. Set up credit cards as follows: Credit Cards Accepted: Credit Cards Used: Code - H: Code - HI: Enter Sales Taxes and Tax Codes Tax - HST: Credit Card Name: Wishful Discount Fee: 3.5% Linked Asset Account: 1100 Linked Expense Account: 5010 Receivables Settings: Options Discounts Credit Card Name: Wishful Linked Payable Account: 2150 Linked Expense Account: 5010 Enter the ledger settings. Leave unused linked accounts blank. Allow account classes to change. General: Linked Accounts Comment Linked Accounts Not Exempt, Not Taxable, Use 2670 to track tax paid on expenses. Use 2650 to track taxes charged on revenue. Report on taxes Tax HST, Taxable, Rate 13%, Not included, Refundable Tax HST, Taxable, Rate 13%, Included, Refundable Payables Settings: Address Linked Accounts Retained Earnings 3560 Net Income 3600 Toronto, Ontario, Canada 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 Address Toronto, Ontario, Canada 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 Payment terms: 1% after tax discount in 15 days; net 30 days Line discounts are not used On Client Invoices: Beauty can be skin deep. 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 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Page 5 Names - Additional Payroll: Incomes Deductions Taxes Payroll Entitlements: Linked Accounts - Income - Deductions: Deduction 1: RRSP Delete other Deduction names Worker's Comp: WSIB User-Defined Expense 1: Medical (this is an employee benefit) User-Defined Expense 2: Tuition Entitlement 1: Sick Leave Entitlement 2: Vacation Delete other User-Defined Expense and Entitlement names Regular and Overtime 1: Type - Hourly rate Calculate tax, 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 - Insurable ours, CPP, EHT and vacation Calculate tax, CPP and EHT RRSP by amount deduct before calculating tax EI Factor is 1.4 WSIB rate is 2.02 EHT factor is 0.98 Sick Leave: Track - 2.5%; Maximum 15 days; Clear at Year-end Vacation: Track - 6%; Maximum 25 days; Do not clear at Year-end Bank 1080 Vacation (Owed) 2300 Advances & Loans 1240 Use 5300 for Vacation Earned, Regular, Overtime, Salary, Commission, No. Clients and Tuition RRSP 2400 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Page 6 10. tax) Payroll Settings: (continued) - Taxes: - User-Defined Expenses: Inventory Settings:Options: - Linked Accounts Division Settings: - Allocation 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. Payables - Medical 2380 Payables - Tuition 2390 Expenses - Medical 5380 Expenses - Tuition 5400 Sort by description Profit evaluation by markup Do not allow inventory to drop below zero Adjustment Write-off 5030 Change the name of Project to Division Allocate by percentages - Payroll & Other Transactions Warn if division allocation is not complete Allow access to Allocate field using Tab key Create the following supplier accounts with historical information: Name (Contact), Address Full Spectrum (Manny Colors) 189 Indigo Way, Buffalo, New York, USA 14209 Fax: (716) 662-6164 Web site: www.fullspectrum.com Medi-Specs (I.N. Spector) 512 Monitor Ct., Ottawa, ON K6T 7F3 E-mail: inspector@medispecs.com Name Full Spectrum Skin Decals, Inc. (Art) 899 Creative Way, Oakville, ON L5R 2V7 Tax ID: 887 210 092 E-mail: art@skindecals.com Phone/Fax Tel: (716) 662-6682 Tel: (613) 774-7109 Fax: (613) 774-7799 Historical Supplier Invoices and Payments Terms Date 2/15, n/30 after tax Mar 15/24 Tel: (905) 526-7191 Terms: 2/5, n/15 (after tax) Tax Code: H Supplier since 01/01/2013 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Options, Tax, Account Terms: 2/15, n/30 (after Tax Code: H Currency: USD Supplier since 02/01/2015 Terms: net 15 (after tax) Tax Code: H Supplier since 03/01/2016 Invoice/Chq FS-3903 Amount $970 USD (1,164 CAD) Page 7 Skin Decals, Inc. 12. Customer accounts: Name (Contact), Address Hart Bridal Party (Bonnie Hart) Preferred Price List 2/5, n/15 (after tax) 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. 55 Blissful Blvd., Toronto, ON M1P 7D3 E-mail: b.hart@gmail.com Stan Stoner 110 Abbey Rd., Toronto, ON M8C 9A1 E-mail: s.stoner@yahoo.com Name Stan Stoner Historical Customer Invoices and Payments Terms 1/15, n/30 Personal Address SIN# Birth Date Date of Hire Taxes Tax Table Mar 25/24 Mar 27/24 Mar 30/24 (416) 882-6234 624 514 774 Apr. 15, 1984 Feb. 1, 2007 Ontario Federal Claim $14 398 Provincial Claim $11 141 Federal Index amount $14 398 Provincial Index amount $11 141 (Entire claim amounts are subject to indexing) Additional Federal Tax Phone/Fax Tel: (647) 762-6712 Fax: (647) 762-9991 Client since 11/01/2017 Invoice/Chq 3104 Chq 32 Balance owing 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. Magenta Dyes 345 Ochre Blvd. Toronto, ON M4H 4R2 SD-621 Chq 398 SD-808 Balance owing Grand Total Tel: (416) 592-9001 Client since 12/01/2017 Date Mar 28/24 Mar 28/24 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 $3 800 -1 800 1510 $3 510 $4 500 Amount $4 300 -1 500 $2 800 Carmine Painter 22 Crimson Ave. Toronto, ON M3C 3W1 (647) 598-7177 621 628 999 Dec. 23, 1980 Mar. 23, 2022 Ontario $14 398 $11 141 $14 398 $11 141 $100 Page 8 Deduct EI & CPP (EI Factor) Historical Income Tax Historical EI Contributions Historical CPP Contributions Income Advances Historical Amount Benefits (medical plan) Benefits Historical Amount Vacation Salary Salary Hours per Period Regular Wage Hours per Period No. Clients No. Clients Historical Amount Tuition Tuition historical amount Pay Periods per Year Deductions Magenta Dyes Yes, Yes (1.4) $1 202 RRSP Deductions per Pay RRSP Historical Contributions WSIB and Other Expenses WSIB Rate $167 $474 Regular Wage Historical Amount Overtime wage Overtime Wage Historical Amount $702 Commission $150 $10 $130 6% retained Vacation Owed $360.00 (do not use) $18.00/hr 35 (Regular hours) $8 190 $27.00/hr (do not use) $5 $780 $50 $650 52 $50.00 $650.00 2.02% Medical per pay (Historical Medical) $10.00 ($130.00) Tuition per pay (Historical Tuition) $50 ($650.00) Entitlements (Percentage for tracking, maximum days) Sick Leave 2.5%, 15 days max; clear 4 Historical Sick Leave days Vacation Historical Vacation days Direct Deposit (100% of paycheques deposited) Branch No., Institution No. and Account numbers 38648, 223, 45567 2435644 6.0%, 25 days max; not cleared 0 T4 and RL-1 Reporting Historical EI Insurable Earnings $9 672 Historical Pensionable Earnings $10 452 Remitting frequency - Monthly End of remittance period - April 15, 2024. Carmine Painter Yes, Yes (1.4) Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 $20 3 weeks (0%) $2 200 bi-monthly 80 (Salary hours) (do not use) (do not use) 1% of revenue (do not use) (do not use) 24 $50.00 2.02% $20.00 2.5%, 15 days max; clear 13. Set up a payroll authority. Create a new supplier record for the Receiver General of Canada as the payroll authority for Income Tax, EI and CPP. Leave the remaining supplier fields blank. Settings -Payroll: Remittance and suppliers-Receiver General of Canada 16678,221, Page 9 14. 15. 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. Create 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: Description No. Unit C.O.G.S. Ink - Permanent Colour 101 10 tubes/box 50 5060 Ink - Permanent Outline 102 10 tubes/box 20 5060 Ink - Temporary Colour 201 10 tubes/box 50 5060 Ink - Temporary Outline 202 10 tubes/box Design - Small Design - Medium 5060 301 each 5060 302 each 5060 303 each 5060 Design - Special Order 304 each 5060 Design - Large Service 17. Tattoo application Design Creation No. Unit Expense 501 session 502 each Min There are no balances forward. Select status: Completed Setup: warn if allocation is not complete 20 10 10 16. Create two divisions starting April 1, 2022. 1. Sales 2. Services Reg (Pref) Price (Price) $10 ($8) 10 8 7 25 (20) 60 10 100 Reg Price (8) (7) (5) (50) Custom Pricing (90) Computerized Accounting with Sage 50 Level 2 (SI20) Final Project 1 Opening Qty Value 80 $320 50 60 $80 ($70) Custom pricing 300 40 160 100 1 400 250 1440 4020 100 2 900 (Pref Price) 100 6 500 Linked Accounts Asset Rev 1440 4020 1440 4020 1440 4020 1420 4020 1420 4020 1420 4020 1420 4020 Tax Rev HST 4060 5070 HST 4060 5070 Back up your work with the name Dermal – Before finishing history. - Continue with the original working copy, DERMAL.SAI. Finish entering the history. Page 10 18. Change the session date to April 8, 2024 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, 2024 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 From Skin Decals, Inc. 20 Design- Small ($13 ea) 10 Design - Medium ($27 ea) 10 Design Large ($58 ea) Courier Freight Charge HST Paid Invoice Total . Terms: 1/10, net 30. Edit the default prices and terms Dated April 3, 2024 Shipping Date April 11, 2024 $260.00 270.00 580.00 40.00 149.50 $1 299.50 Cash Receipt #356 Dated April 4, 2024 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, 2024 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. Purchase Invoice #FS-4972 From Full Spectrum, Payment Cheque #433 Dated April 4, 2024 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. Dated April 5, 2024 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) HST Paid Invoice Total 160.00 USD Cheque Copy #119 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 88.40 USD $768.40 USD Terms: 2/15, net 30 The exchange rate is 1.21 (the exchange rate difference amount may not be allocated) Edit the default prices. Dated April 6, 2024 Page 11 To Full Spectrum, $970 USD in full payment of invoice #FS-3903. The exchange rate is 0.190. Paid from Bank: USD Chequing Account. Sales Quote #32 Dated April 6, 2024 Delivery Date April 15, 2024 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 To Wanda Wonder (Use Quick Add for new Regular customer) 15 Ink - Permanent Colour 6 Ink Permanent Outline 2 Designs - Medium 1 Design Large 5 Tattoo applications HST Charged Invoice total Dated April 6, 2024 Terms: 1/15, net 30. Allocate 100% of sales to Sales Division and 100% of services to Services Division. $ 10/tube 10/tube Memo #1 Dated April 6, 2024 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. Sales Invoice # 3111 To One-time customers 60 each 100 each 80 /session 13 % 937.90 Cash Receipt #357 Dated April 7, 2024 From Hart Bridal Party, cheque #188 for $400 as deposit #106 to accept sales order #32. 12 Ink - Permanent Colour 5 Ink Permanent Outline 6 Ink - Temporary Colour 2 Ink - Temporary Outline Deposit Slip #607 Dated April 7, 2024 Deposit two cheques received in the past week. Total deposit is $3 157. Dated April 8, 2024 $10/tube 6 /tube 8 /tube 7/tube 15 Designs - Small 15 Tattoo applications HST Charged $2 019.31 received by cheque #354 Allocate 100% of sales to Sales Division and 100% of services to Services Division. Edit the default prices. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 25 each 80 /session 13 % Memo #2 Pay hourly employee, Magenta Dyes for 35 hours regular work. Dated April 8, 2024 Page 12 19. Recover $50 advance. Dyes should be paid for serving 10 clients (No. Clients piece rate pay). Allocate 30% payroll expenses to Sales and 70% to Service. Issue deposit slip #68. Hints: Use Payroll cheque run. Accept: Payroll Tables are out of date Back up the data files with the name Dermal - April 8. Continue with the file DERMAL.SAI. Change the session date to April 15, 2024. Enter the following transactions: Purchase Invoice #SD-986 Dated April 11, 2024 To fill Purchase Order #55 From Skin Decals, Inc. 20 Designs - Small ($13 ea) 10 Designs - Medium ($27 ea) 10 Designs - Large ($58 ea) Courier Freight Charge HST Paid Invoice Total Terms: 1/10, net 30 (new payment terms). Allocate 100% of freight expense to Sales Division. Memo #3 Dated April 11, 2024 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 Other supplies Tattoo gun 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.) Sales Invoice #3112 To Stan Stoner $260.00 270.00 580.00 40.00 Cash Receipt #358 Dated April 11, 2024 From Wanda Wonder, cheque #344 for $928.52 in payment of invoice #3110, taking into account 1% sales discount of $9.38 for early payment. 4 Designs - Large 10 Ink - Permanent Outline 149.50 $1 299.50 Cash Receipt #359 Dated April 11, 2024 From Stan Stoner, cheque # 2789 for $1 000 as deposit #107 in prepayment for tattoo work to be completed over several weeks. 10 Ink Permanent Colour 20 Tattoo application HST Charged Invoice total Terms: 1/15, net 30 $120 $80 $250 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Dated April 13, 2024 $100 each 10/tube 10/tube 80/session 13 % $2 486 Page 13 Allocate 100% of sales to Sales Division and 100% of services to services Division. Accept message. Sales Invoice #3113 To Hart Bridal Party, to fill sales order #32 10 Ink - Temporary Colour 10 Ink - Temporary Outline 20 Designs - Small 10 Tattoo application HST Charged Invoice Total Credit Card Sales Invoice #3114 To One-time credit card customers Dated April 15, 2024 20 Ink - Permanent Colour 9 Ink - Permanent Outline 8 Ink - Temporary Colour 4 Ink - Temporary Outline 10 Designs - Medium 20 Tattoo application HST Charged Terms: 1/15, net 30. Allocate 100% of sales to Sales Division and 100% of services to services Division. Dated April 15, 2024 $7/tube 5 /tube 20 each 70/session 13 % $1 378.60 $10/tube 10/tube 8 /tube 7/tube 60 each 80/session 13 % Invoice total $2917.66 paid by Wishful. Allocate 100% of sales to Sales Division and 100% of services to Services Division. Edit the default prices. Purchase Order #56 Dated April 15, 2024 Delivery Date: April 28, 2024 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 1.1985. Purchase Invoice # MS-903 Dated April 15, 2024 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. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Deposit Slip #608 Dated April 15, 2024 Deposit three cheques received in the past weeks totaling $3,920.98. Total deposit amount was $3 947.83. Memo #4 Dated April 15, 2024 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, 2024 Page 14 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. Note: Record hours worked per pay period. Memo #6 Dated April 15, 2024 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 1.2. Bank Debit Memo #RCU-4433 Dated April 15, 2024 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, 2024 Make payroll tax remittance to the Receiver General for the pay periods ending April 15, 2024. 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 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 Mar. 15 Mar. 29 Mar. 30 Expensel: Bank Charges 5010 Bank & Credit Card Fees Expense2: NSF fee 5010 Bank & Credit Card Fees Apr. 1 Apr. 1 Apr. 4 Expense3: 5230 Interest Expense Adjustment: 5005 Reconciliation Adjustments Apr. 8 Apr. 8 Apr. 15 Source 606 431 Description Deposit slip Skin Decals, Inc. (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 Balance forward Deposit 606 Cheque 431 Interest on account Cheque 432 Cheque 433 Deposit 607 Payroll transfer Ref #68 Deposit 608 Date Mar 29 Mar 30 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 1 800.00 2 373.00 3 679.80 Amount Deposit $2 600 Payment $1 800 508.15 deposits balance 2 600.00 15.00 3 157.00 3 920.98 23 330.00 Page 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Debit memo Transfer from 04328-476199 Transfer to 04328-59990 Payroll transfer Ref #69- Payroll transfer Ref #70- Service fee Closing Balance Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 600.00 2 040.00 511.71 1 744.85 45.00 4000.00 23 987.32 Page 16 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 Balance Sheet Income Statement Employee Summary Report Inventory Summary Report Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 60 marks 20 marks 10 marks 5 marks 5 marks Page 1 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: Phone: Fiscal start: Earliest transaction date: Fiscal end: 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. -View: Change the default settings if necessary to include the following: 2. User Preferences: - Options - Transactions -Information - System: 9999-A New St., Toronto, Ontario M5W 1G6 (647) 523-8191 Fax: (647) 525-8819 - Backup - Features - Forms 04-01-2024 04-01-2024 06-30-2024 Use Accounting Terms Automatically save changes to Suppliers, Clients and Other Records Show list buttons in SAGE 50 Turn off Checklists and Daily Business Manager at startup and after changing session date Show Change Session Date at startup Turn on Confirmation Message Box Company Settings: Business No: 872 197 639 Do not allow transactions dated before 04-01-2024 Do not allow transactions in future Backup frequency: Weekly; turn off automatic backups Use all features 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 (SI20) Final Project 1 Page 2 3. Date Format: MM, DD, YYYY. Use long date format on screen and in reports 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 Print the Chart of Accounts for reference. 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) Computerized Accounting with Sage 50 Level 2 (SI20) Final Project 1 Page 3 4. 5. 6. 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 2 200 1100 Bank: Credit Card 1200 Accounts Receivable 2 800 1240 Advances Receivable 150 650 400 10 800 1 030 6 500 4 800 12 000 4 500 120 000 1300 Sterilized Needles 1320 Other Supplies 1420 Tattoo Designs 1440 Ink 1620 Computers and Video Monitors 1640 Sterilization Equipment 1660 Tattoo Equipment 1680 Store Fixtures and Displays 1690 Store 2100 Bank Loan 2150 Credit Card Payable 2200 Accounts Payable 2300 Vacation Payable 2310 EI Payable 2320 CPP Payable 2330 Income Tax Payable 2650 HST Charged on Sales (A) 2670 HST Paid on Purchases (A) 2850 Mortgage Payable 3560 D. Zines, Capital 1 620 $193 130 $ 6 000 1 200 4 674 360 145 390 625 1 890 60 000 117 846 $193 130 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. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 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 $1 350 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. Page 4 7. 8. 9. Set up credit cards as follows: Credit Cards Accepted: Credit Cards Used: Code - H: Code - HI: Enter Sales Taxes and Tax Codes Tax - HST: Credit Card Name: Wishful Discount Fee: 3.5% Linked Asset Account: 1100 Linked Expense Account: 5010 Receivables Settings: Options Discounts Credit Card Name: Wishful Linked Payable Account: 2150 Linked Expense Account: 5010 Enter the ledger settings. Leave unused linked accounts blank. Allow account classes to change. General: Linked Accounts Comment Linked Accounts Not Exempt, Not Taxable, Use 2670 to track tax paid on expenses. Use 2650 to track taxes charged on revenue. Report on taxes Tax HST, Taxable, Rate 13%, Not included, Refundable Tax HST, Taxable, Rate 13%, Included, Refundable Payables Settings: Address Linked Accounts Retained Earnings 3560 Net Income 3600 Toronto, Ontario, Canada 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 Address Toronto, Ontario, Canada 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 Payment terms: 1% after tax discount in 15 days; net 30 days Line discounts are not used On Client Invoices: Beauty can be skin deep. 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 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Page 5 Names - Additional Payroll: Incomes Deductions Taxes Payroll Entitlements: Linked Accounts - Income - Deductions: Deduction 1: RRSP Delete other Deduction names Worker's Comp: WSIB User-Defined Expense 1: Medical (this is an employee benefit) User-Defined Expense 2: Tuition Entitlement 1: Sick Leave Entitlement 2: Vacation Delete other User-Defined Expense and Entitlement names Regular and Overtime 1: Type - Hourly rate Calculate tax, 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 - Insurable ours, CPP, EHT and vacation Calculate tax, CPP and EHT RRSP by amount deduct before calculating tax EI Factor is 1.4 WSIB rate is 2.02 EHT factor is 0.98 Sick Leave: Track - 2.5%; Maximum 15 days; Clear at Year-end Vacation: Track - 6%; Maximum 25 days; Do not clear at Year-end Bank 1080 Vacation (Owed) 2300 Advances & Loans 1240 Use 5300 for Vacation Earned, Regular, Overtime, Salary, Commission, No. Clients and Tuition RRSP 2400 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Page 6 10. tax) Payroll Settings: (continued) - Taxes: - User-Defined Expenses: Inventory Settings:Options: - Linked Accounts Division Settings: - Allocation 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. Payables - Medical 2380 Payables - Tuition 2390 Expenses - Medical 5380 Expenses - Tuition 5400 Sort by description Profit evaluation by markup Do not allow inventory to drop below zero Adjustment Write-off 5030 Change the name of Project to Division Allocate by percentages - Payroll & Other Transactions Warn if division allocation is not complete Allow access to Allocate field using Tab key Create the following supplier accounts with historical information: Name (Contact), Address Full Spectrum (Manny Colors) 189 Indigo Way, Buffalo, New York, USA 14209 Fax: (716) 662-6164 Web site: www.fullspectrum.com Medi-Specs (I.N. Spector) 512 Monitor Ct., Ottawa, ON K6T 7F3 E-mail: inspector@medispecs.com Name Full Spectrum Skin Decals, Inc. (Art) 899 Creative Way, Oakville, ON L5R 2V7 Tax ID: 887 210 092 E-mail: art@skindecals.com Phone/Fax Tel: (716) 662-6682 Tel: (613) 774-7109 Fax: (613) 774-7799 Historical Supplier Invoices and Payments Terms Date 2/15, n/30 after tax Mar 15/24 Tel: (905) 526-7191 Terms: 2/5, n/15 (after tax) Tax Code: H Supplier since 01/01/2013 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Options, Tax, Account Terms: 2/15, n/30 (after Tax Code: H Currency: USD Supplier since 02/01/2015 Terms: net 15 (after tax) Tax Code: H Supplier since 03/01/2016 Invoice/Chq FS-3903 Amount $970 USD (1,164 CAD) Page 7 Skin Decals, Inc. 12. Customer accounts: Name (Contact), Address Hart Bridal Party (Bonnie Hart) Preferred Price List 2/5, n/15 (after tax) 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. 55 Blissful Blvd., Toronto, ON M1P 7D3 E-mail: b.hart@gmail.com Stan Stoner 110 Abbey Rd., Toronto, ON M8C 9A1 E-mail: s.stoner@yahoo.com Name Stan Stoner Historical Customer Invoices and Payments Terms 1/15, n/30 Personal Address SIN# Birth Date Date of Hire Taxes Tax Table Mar 25/24 Mar 27/24 Mar 30/24 (416) 882-6234 624 514 774 Apr. 15, 1984 Feb. 1, 2007 Ontario Federal Claim $14 398 Provincial Claim $11 141 Federal Index amount $14 398 Provincial Index amount $11 141 (Entire claim amounts are subject to indexing) Additional Federal Tax Phone/Fax Tel: (647) 762-6712 Fax: (647) 762-9991 Client since 11/01/2017 Invoice/Chq 3104 Chq 32 Balance owing 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. Magenta Dyes 345 Ochre Blvd. Toronto, ON M4H 4R2 SD-621 Chq 398 SD-808 Balance owing Grand Total Tel: (416) 592-9001 Client since 12/01/2017 Date Mar 28/24 Mar 28/24 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 $3 800 -1 800 1510 $3 510 $4 500 Amount $4 300 -1 500 $2 800 Carmine Painter 22 Crimson Ave. Toronto, ON M3C 3W1 (647) 598-7177 621 628 999 Dec. 23, 1980 Mar. 23, 2022 Ontario $14 398 $11 141 $14 398 $11 141 $100 Page 8 Deduct EI & CPP (EI Factor) Historical Income Tax Historical EI Contributions Historical CPP Contributions Income Advances Historical Amount Benefits (medical plan) Benefits Historical Amount Vacation Salary Salary Hours per Period Regular Wage Hours per Period No. Clients No. Clients Historical Amount Tuition Tuition historical amount Pay Periods per Year Deductions Magenta Dyes Yes, Yes (1.4) $1 202 RRSP Deductions per Pay RRSP Historical Contributions WSIB and Other Expenses WSIB Rate $167 $474 Regular Wage Historical Amount Overtime wage Overtime Wage Historical Amount $702 Commission $150 $10 $130 6% retained Vacation Owed $360.00 (do not use) $18.00/hr 35 (Regular hours) $8 190 $27.00/hr (do not use) $5 $780 $50 $650 52 $50.00 $650.00 2.02% Medical per pay (Historical Medical) $10.00 ($130.00) Tuition per pay (Historical Tuition) $50 ($650.00) Entitlements (Percentage for tracking, maximum days) Sick Leave 2.5%, 15 days max; clear 4 Historical Sick Leave days Vacation Historical Vacation days Direct Deposit (100% of paycheques deposited) Branch No., Institution No. and Account numbers 38648, 223, 45567 2435644 6.0%, 25 days max; not cleared 0 T4 and RL-1 Reporting Historical EI Insurable Earnings $9 672 Historical Pensionable Earnings $10 452 Remitting frequency - Monthly End of remittance period - April 15, 2024. Carmine Painter Yes, Yes (1.4) Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 $20 3 weeks (0%) $2 200 bi-monthly 80 (Salary hours) (do not use) (do not use) 1% of revenue (do not use) (do not use) 24 $50.00 2.02% $20.00 2.5%, 15 days max; clear 13. Set up a payroll authority. Create a new supplier record for the Receiver General of Canada as the payroll authority for Income Tax, EI and CPP. Leave the remaining supplier fields blank. Settings -Payroll: Remittance and suppliers-Receiver General of Canada 16678,221, Page 9 14. 15. 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. Create 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: Description No. Unit C.O.G.S. Ink - Permanent Colour 101 10 tubes/box 50 5060 Ink - Permanent Outline 102 10 tubes/box 20 5060 Ink - Temporary Colour 201 10 tubes/box 50 5060 Ink - Temporary Outline 202 10 tubes/box Design - Small Design - Medium 5060 301 each 5060 302 each 5060 303 each 5060 Design - Special Order 304 each 5060 Design - Large Service 17. Tattoo application Design Creation No. Unit Expense 501 session 502 each Min There are no balances forward. Select status: Completed Setup: warn if allocation is not complete 20 10 10 16. Create two divisions starting April 1, 2022. 1. Sales 2. Services Reg (Pref) Price (Price) $10 ($8) 10 8 7 25 (20) 60 10 100 Reg Price (8) (7) (5) (50) Custom Pricing (90) Computerized Accounting with Sage 50 Level 2 (SI20) Final Project 1 Opening Qty Value 80 $320 50 60 $80 ($70) Custom pricing 300 40 160 100 1 400 250 1440 4020 100 2 900 (Pref Price) 100 6 500 Linked Accounts Asset Rev 1440 4020 1440 4020 1440 4020 1420 4020 1420 4020 1420 4020 1420 4020 Tax Rev HST 4060 5070 HST 4060 5070 Back up your work with the name Dermal – Before finishing history. - Continue with the original working copy, DERMAL.SAI. Finish entering the history. Page 10 18. Change the session date to April 8, 2024 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, 2024 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 From Skin Decals, Inc. 20 Design- Small ($13 ea) 10 Design - Medium ($27 ea) 10 Design Large ($58 ea) Courier Freight Charge HST Paid Invoice Total . Terms: 1/10, net 30. Edit the default prices and terms Dated April 3, 2024 Shipping Date April 11, 2024 $260.00 270.00 580.00 40.00 149.50 $1 299.50 Cash Receipt #356 Dated April 4, 2024 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, 2024 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. Purchase Invoice #FS-4972 From Full Spectrum, Payment Cheque #433 Dated April 4, 2024 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. Dated April 5, 2024 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) HST Paid Invoice Total 160.00 USD Cheque Copy #119 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 88.40 USD $768.40 USD Terms: 2/15, net 30 The exchange rate is 1.21 (the exchange rate difference amount may not be allocated) Edit the default prices. Dated April 6, 2024 Page 11 To Full Spectrum, $970 USD in full payment of invoice #FS-3903. The exchange rate is 0.190. Paid from Bank: USD Chequing Account. Sales Quote #32 Dated April 6, 2024 Delivery Date April 15, 2024 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 To Wanda Wonder (Use Quick Add for new Regular customer) 15 Ink - Permanent Colour 6 Ink Permanent Outline 2 Designs - Medium 1 Design Large 5 Tattoo applications HST Charged Invoice total Dated April 6, 2024 Terms: 1/15, net 30. Allocate 100% of sales to Sales Division and 100% of services to Services Division. $ 10/tube 10/tube Memo #1 Dated April 6, 2024 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. Sales Invoice # 3111 To One-time customers 60 each 100 each 80 /session 13 % 937.90 Cash Receipt #357 Dated April 7, 2024 From Hart Bridal Party, cheque #188 for $400 as deposit #106 to accept sales order #32. 12 Ink - Permanent Colour 5 Ink Permanent Outline 6 Ink - Temporary Colour 2 Ink - Temporary Outline Deposit Slip #607 Dated April 7, 2024 Deposit two cheques received in the past week. Total deposit is $3 157. Dated April 8, 2024 $10/tube 6 /tube 8 /tube 7/tube 15 Designs - Small 15 Tattoo applications HST Charged $2 019.31 received by cheque #354 Allocate 100% of sales to Sales Division and 100% of services to Services Division. Edit the default prices. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 25 each 80 /session 13 % Memo #2 Pay hourly employee, Magenta Dyes for 35 hours regular work. Dated April 8, 2024 Page 12 19. Recover $50 advance. Dyes should be paid for serving 10 clients (No. Clients piece rate pay). Allocate 30% payroll expenses to Sales and 70% to Service. Issue deposit slip #68. Hints: Use Payroll cheque run. Accept: Payroll Tables are out of date Back up the data files with the name Dermal - April 8. Continue with the file DERMAL.SAI. Change the session date to April 15, 2024. Enter the following transactions: Purchase Invoice #SD-986 Dated April 11, 2024 To fill Purchase Order #55 From Skin Decals, Inc. 20 Designs - Small ($13 ea) 10 Designs - Medium ($27 ea) 10 Designs - Large ($58 ea) Courier Freight Charge HST Paid Invoice Total Terms: 1/10, net 30 (new payment terms). Allocate 100% of freight expense to Sales Division. Memo #3 Dated April 11, 2024 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 Other supplies Tattoo gun 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.) Sales Invoice #3112 To Stan Stoner $260.00 270.00 580.00 40.00 Cash Receipt #358 Dated April 11, 2024 From Wanda Wonder, cheque #344 for $928.52 in payment of invoice #3110, taking into account 1% sales discount of $9.38 for early payment. 4 Designs - Large 10 Ink - Permanent Outline 149.50 $1 299.50 Cash Receipt #359 Dated April 11, 2024 From Stan Stoner, cheque # 2789 for $1 000 as deposit #107 in prepayment for tattoo work to be completed over several weeks. 10 Ink Permanent Colour 20 Tattoo application HST Charged Invoice total Terms: 1/15, net 30 $120 $80 $250 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Dated April 13, 2024 $100 each 10/tube 10/tube 80/session 13 % $2 486 Page 13 Allocate 100% of sales to Sales Division and 100% of services to services Division. Accept message. Sales Invoice #3113 To Hart Bridal Party, to fill sales order #32 10 Ink - Temporary Colour 10 Ink - Temporary Outline 20 Designs - Small 10 Tattoo application HST Charged Invoice Total Credit Card Sales Invoice #3114 To One-time credit card customers Dated April 15, 2024 20 Ink - Permanent Colour 9 Ink - Permanent Outline 8 Ink - Temporary Colour 4 Ink - Temporary Outline 10 Designs - Medium 20 Tattoo application HST Charged Terms: 1/15, net 30. Allocate 100% of sales to Sales Division and 100% of services to services Division. Dated April 15, 2024 $7/tube 5 /tube 20 each 70/session 13 % $1 378.60 $10/tube 10/tube 8 /tube 7/tube 60 each 80/session 13 % Invoice total $2917.66 paid by Wishful. Allocate 100% of sales to Sales Division and 100% of services to Services Division. Edit the default prices. Purchase Order #56 Dated April 15, 2024 Delivery Date: April 28, 2024 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 1.1985. Purchase Invoice # MS-903 Dated April 15, 2024 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. Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 Deposit Slip #608 Dated April 15, 2024 Deposit three cheques received in the past weeks totaling $3,920.98. Total deposit amount was $3 947.83. Memo #4 Dated April 15, 2024 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, 2024 Page 14 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. Note: Record hours worked per pay period. Memo #6 Dated April 15, 2024 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 1.2. Bank Debit Memo #RCU-4433 Dated April 15, 2024 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, 2024 Make payroll tax remittance to the Receiver General for the pay periods ending April 15, 2024. 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 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 Mar. 15 Mar. 29 Mar. 30 Expensel: Bank Charges 5010 Bank & Credit Card Fees Expense2: NSF fee 5010 Bank & Credit Card Fees Apr. 1 Apr. 1 Apr. 4 Expense3: 5230 Interest Expense Adjustment: 5005 Reconciliation Adjustments Apr. 8 Apr. 8 Apr. 15 Source 606 431 Description Deposit slip Skin Decals, Inc. (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 Balance forward Deposit 606 Cheque 431 Interest on account Cheque 432 Cheque 433 Deposit 607 Payroll transfer Ref #68 Deposit 608 Date Mar 29 Mar 30 Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 1 800.00 2 373.00 3 679.80 Amount Deposit $2 600 Payment $1 800 508.15 deposits balance 2 600.00 15.00 3 157.00 3 920.98 23 330.00 Page 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Apr. 15 Debit memo Transfer from 04328-476199 Transfer to 04328-59990 Payroll transfer Ref #69- Payroll transfer Ref #70- Service fee Closing Balance Computerized Accounting with Sage 50 Level 2 (S120) Final Project 1 600.00 2 040.00 511.71 1 744.85 45.00 4000.00 23 987.32 Page 16

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