600 Project 2: Northern Sports Income 40020 Sales-Road Bikes Income Cost of Sales 40030 Sales-Children's Bikes Cost of Sales 50020 Cost of Sales-Road Bikes 50030 Cost of Sales-Children's Bikes Expenses 73200 Soc. Sec. Expense Expenses 73300 Medicare Expense Expenses 73350 Local Payroll Taxes Expense 2. Back up. Use Northern Sports Chart of Accounts as the file name 3. Record chart of accounts beginning balances as of December 31, 2015 Northern Sports, Balance Sheet, January 1, 2017 ASSETS Current Assets $ 87,400.00 Federal Bank 15,000.00 West Savings & Loan 6,000.00 Inventory-Mountain Bikes 8,250.00 Inventory-Road Bikes 4,050.00 Inventory-Children's Bikes 2,400.00 Prepaid Insurance Total Current Assets $123,100,00 Property and Equipment: Furniture and Fixtures 6,000.00 Total Property and Equipment and Other Assets blog book 6,000.00 Total Assets $129,100.00 LIABILITIES AND STOCKHOLDERS' EQUITY Short-Term Notes Payable 4,000.00 Long-Term Notes Payable 5,500.00 Total Liabilities $9,500.00 Stockholder's Equity: Common Stock 119,600.00 Total Liabilities and Stockholders' Equity $129,100. McGraw-Hill Education, Computer Accounting with Sage 20Project 2 Northern Sports in Project 2, you complete the Computer Accounting Cycle for Northern Sports. a merchandising business. Northern Sports sells mountain bicycles, road bicycles, and children's bicycles. It is organized as a corporation. You purchased Northern Sports in December 2016. It is the purpose of Project 2 to review what you have learned in Chapters 12 through 15, Part 3 of Sage 50 for Merchandising Businesses. Accounts payable, accounts receivable, payroll, inventory transactions, and account reconciliation are included in this project. Vendors offer Northern Sports a purchase discount of 2% 15, Net 30 days. Northern Sports is located in OR where there is no sales tax. At the end of Project 2, a checklist is shown listing reports that you should have. The step-by-step instructions also remind you to print reports and back up. Step 1: Start Sage 50. Step 2: If a company opens, from the menu bar, select File > New Company No for keeping another company open > click Next > (Or, from the startup window, select Create a new Company.) Step 3: Complete the following fields. Company Name: Northern Sports (your last name before company) Address Line 1: 89 Mall Drive, Store 18 City, State, Zip: Eugene, OR 97401 Country: USA Telephone: 541-555-4422 Fax: 541-555-4424 Business Type: Corporation 597598 Project 2: Northern Sports Federal Employer ID: 88-1841463 State Employer ID: 32-3178924 State Unemployment ID: 323142-8 Web Site: www.northernsports.com E-mail: mail @northernsports.com Step 4: Accept the default for Use a sample business type that closely matches your company. Step 5: Scroll down the list. In the Detailed types list, select Retail Company. (Hint: Account numbers have 5 digits.) Step 6: Accept the defaults for Accrual accounting, Real Time posting, and 12 monthly accounting periods. Step 7: The Choose the first period of your fiscal year window appears. If necessary, select 2017 as the year. Step 8: At the You are ready to create your company window, click Finish Close the Sage Advisor Getting Started window. Step 9: Change the accounting period to 01-Jan 01, 2017 to Jan 31, 2017- Period 1 - 01/01/17-01/51/17 General Ledger 1. Delete accounts: 10000 Petty Cash 10100 Cash on Hand 10300 Payroll Checking Account 11500 Allowance for Doubtful Account 14200 Notes Receivable-Current 15400 Leasehold Improvements 15500 Building 15600 Building Improvements 16900 Land 17400 Accum. Depreciation - Leasehold 17500 Accum. Depreciation - Building 17600 Accum. Depreciation - Bldg Imp19000 Deposits Note Receivable-Noncurrent 19200 Other Noncurrent Assets 19900 Accrued Expenses 23000 Current Portion Long-Term Debt 24200 Amortization Expense 60500 Charitable Contributions Exp 63000 63500 Commissions and Fees Exp 65000 Employee Benefit Programs Exp 66000 Gifts Expense 68000 Laundry and Cleaning Exp 89000 Other Expense Change account: 10200 Regular Checking Account to Federal Bank 10400 Savings Account to West Savings & Loan 12000 Product Inventory to Inventory-Mountain Bikes 14000 Prepaid Expenses to Prepaid Insurance 23300 Deductions Payable to Medicare Employee Taxes Payabl 24000 Other Taxes Payable to Soc. Sec. Employee Taxes Payab 24100 24800 Employee Benefits Payable to Soc. Sec. Employer Taxes Payab Other Current Liabilities to Short-Term Notes Payable 27000 40000 Notes Payable-Noncurrent to Long-Term Notes Payable 50000 Sales-Merchandise to Sales-Mountain Bikes 72500 Cost of Goods Sold to Cost of Sales-Mountain Bikes 73000 Penalties and Fines Exp to FUTA Expense 74000 Other Taxes to SUTA Expense Rent or Lease Expense to Rent-Mall Space Add accounts: 12030 12020 Inventory-Road Bikes Inventory 23350 Inventory-Children's Bikes Inventory Medicare Employer Taxes Payabl Other Current Liabilities McGraw-Hill Education, Computer Accounting with Sage 50 2017, 20e600 . roject 2: Northern Sports 40020 Sales-Road Bikes Income 40030 Sales-Children's Bikes Cost of Sales-Road Bikes Income 50020 Cost of Sales 50030 Cost of Sales-Children's Bikes Soc. Sec. Expense Cost of Sales 73200 Medicare Expense Expenses 73300 Expenses 73350 Local Payroll Taxes Expense Expenses 2. Back up. Use Northern Sports Chart of Accounts as the file name. 3. Record chart of accounts beginning balances as of December 31, 2016 Northern Sports, Balance Sheet, January 1, 2017 ASSETS Current Assets Federal Bank $ 87,400.00 West Savings & Loan 15,000.00 Inventory-Mountain Bikes 6,000.00 Inventory-Road Bikes 8,250.00 Inventory-Children's Bikes 4,050.00 Prepaid Insurance 2,400.00 Total Current Assets $123,100.00 Property and Equipment: Furniture and Fixtures 6,000.00 Total Property and Equipment and Other Assets 6,000.00 Total Assets $129.100.00 LIABILITIES AND STOCKHOLDERS' EQUITY Short-Term Notes Payable 4,000.00 Long-Term Notes Payable 5,500.00 Total Liabilities $9,500.00 Stockholder's Equity: Common Stock 119,600.00 Total Liabilities and Stockholders' Equity $129,100.00 McGraw-Hill Education, Computer Accounting with Sage 2017, 20e604 Project 2: Northern Sports E-mail: robert @eugene.com Web site: www.eugene.com/lanning Sales Info: GL sales acct: 40020, Sales-Road Bikes Customer ID: SW003 Name: Sherry Worth Billing address: 214 Main Street, Apt. 3C City, ST, Zip: Eugene, OR 97404 Customer type: LANE Telephone 1: 541-555-4590 Fax: 541-555-2285 E-mail: worth @eugene.com Web site: www.eugene.com/sherry Sales Info: GL sales acct: 40030, Sales-Children's Bikes Payroll 1. Use the following information for the Payroll Setup Wizard: State: OR State Unemployment Rate: 3.4% Payroll Setup Wizard Do you have any localities for Payroll Setup Wizard Home Taxes which you collect taxes in the > Payroll Options Payroll Taxes Company Information and the expense amount you want to use to track the an state of OR? Yes . Pay Types > Benefits Tax liability acct no.: 23400 . Federal Payroll Taxes Parable Taxes Tex expense acct ne,: 72000 - Payroll Tax Expense . Local Taxes Setup Complete Local Taxes Do you have any localities for which you colect taxes in the state of OR McGraw-Hill Education, Computer Accounting with Sage 2017, 20eProject 2: Northern Sports 605 Locality: Tri-Met Payroll Setup Wizard Payroll Setup Wizard Local Taxes > Home Select the locality for which you collect taxes. Learn more about local taxes Payroll Options Locality? Tri-Met Company Information Pay Types Benefits Taxes Setup Complete Help Cancel Save for Later Buck Nee 2. For entering employee and employer default information, refer to pages 553- 555. Use the Employee Fields shown below. Field Name GL Account Fed_Income 23400, Federal Payroll Taxes Payable Soc_Sec 24000, Soc. Sec. Employee Taxes Payable MEDICARE 23300, Medicare Employee Taxes Payable St_Income 23600, State Payroll Taxes Payable 3. Use the Company Fields shown below. Field Liability column Expense column Soc_Sec_C 24100, Soc. Sec. Employer 73200, Soc. Sec. Taxes Payable Expense Medicare_C 23350 Medicare 73300, Medicare Fed_Unemp_C Employer Taxes Payable Expense 23500, FUTA Tax 72500, FUTA Payable Expense Loc_Income_C 23800, Local Payroll 73350, Local Payroll Taxes Payable Taxes Expense McGraw-Hill Education, Computer Accounting with Sage 50 2017, 20e606 St_Unemp_C 23700, SUTA Payable 73000, SUTA Expense 4. Refer to pages 555-559 to complete the Payroll Setup Wizard's Taxes and Assign Tax Fields. a. Compare your Assign Tax Fields for W-2s to page 557. b. Compare your Assign Company-Paid Tax Fields to page 557. The State Special A field shows Loc_IncomeC. c. Compare Employee-Paid State Taxes to page 558. 5. Add the following employees. Employee ID: ML Name: Markus Leighton Accept the default for Employee Address: 90456 Hill Street City, ST, Zip: Eugene, OR 97401 E-mail: markus @ mail.net Home phone: 541-555-4591 Social Security #: 001-00-4000 Type: FULL Withholding Info: Filing Status: Married for Federal and State Local (Married/Jointly) Allow: 2 for Federal, State and Local Pay Info: Salary, $500 per week. Employee ID: JW Name: Janelle Wittner Accept the default for Employee Address: 146 North Third Street City, ST, Zip: Eugene, OR 97402 McGraw-Hill Education, Computer Accounting with Sage 2017, 20e610 Project 2: Northern Sports 1/06/17 Invoice No. ER555 was received from Essence Road Bikes for 12 road bikes at $75 each. 1/10/17 Deposited cash sales of $2,670: 4 mountain bikes, $1,200; 5 road bikes, $750; 8 children's bikes, $720. Cash sales are deposited in the Federal Bank account. 1/11/17 Deposited cash sales of $1,950: 5 children's bikes, $450; 4 road bikes, $600; and 3 mountain bikes, $900. 1/13/17 Issued pay checks 5003 and 5004 for Janelle Wittner and Markus Leighton. (Hint: If necessary, complete the Check Number field.) 1/13/17 Sold one mountain bike to Diane Bensen on account, Sales Invoice 101. (Hint: Type the invoice number in the Invoice No. field. If necessary, select Layout, Product as the Invoice type.) 1/18/17 Deposited cash sales of $1,920: 3 children's bikes, $270; 2 mountain bikes, $600; 7 road bikes, $1,050. 1/19/17 Issued Check No. 5005 to ABC Mountain Bikes in payment of purchase Invoice No. 74A. Complete the Check/Reference No. field. Issue checks from the Federal Bank account. (Make sure that the Discount Account field shows 59500 for Purchase Discounts.) 1/19/17 Issued Check No. 5006 to Essence Road Bikes in payment of purchase Invoice No. ER555. 1/19/17 Issued Check No. 5007 to Tiny Tots Wheels in payment of purchase Invoice No. 801. 1/20/17 Issued pay checks 5008 and 5009 for Janelle Wittner and Markus Leighton. 1/20/17 Issued Check No. 5010 to Gerard Rentals for $1,350 in payment of mall space rent for Northern Sports. (Hint: Remember to complete the Check/Reference No. field.) 1/26/17 Deposited cash sales of $3,810: 6 mountain bikes, $1,800; 8 road bikes, $1,200; 9 children's bikes, $810. 1/26/17 Sold one children's bike to Sherry Worth on account, Sales Invoice McGraw-Hill Education, Computer Accounting with Sage 2017, 20e