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Final Project 2 Computerized Accounting with Sage 50 Level 1 SI1O Copyright 2019 Project Code: SI1O v6-0 Project 2 Released: November 12, 2019 Updated: Computerized Accounting with Sage 50 Level 1 Fairness Enterprise 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 2019 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 (SI1O) Final Project 2 Page 2 PROJECT SPECIFICATIONS The information provided in this test allows you to set up the General, Payables and Receivables ledgers for a Nova Scotia company named FAIRNESS ENTERPRISE, owned and run by G. Steinem. There are no employees in this company. Fairness Enterprise offers consulting services to medium and large corporations wishing to improve the quality of work performed by their employees. Money works on a contractual basis with most companies, charging a daily rate for services, but she also offers workshops that she developed on a variety of related topics. COMPLETE EACH OF THE FOLLOWING TASKS IN ORDER. 1. Using Sage 50 Accounting, create a new company file using the following information: Company Name: Address: Fairness Enterprise 449 Motivate Crescent Halifax, Nova Scotia P3A 1C5 Phone: (902) 662-8610 Fax: (902) 662-2992 Fiscal start: 10-01-2022 Earliest transaction date: 10-01-2022 Fiscal end: 12-31-2022 Select: Let me build the list of accounts myself after the company is created Industry: Service Store company files in a new folder named FAIRNESS and use Fairness as the file name. Select: I will update my tax information myself 2. Working from the Company module, change the default settings if necessary to include the following: User Preferences Options User Preferences View User Preferences Transaction Company Information Settings Company System Settings Company Features Settings Company Forms Settings Company Date Format Settings Use Accounting Terms Automatically save changes to Suppliers, Clients and Other Records Show list buttons Turn off Checklists and Daily Business Manager at startup and after changing session date Turn off Employees & Payroll, Inventory & Services, Project, and Time & Billing Turn on Change Session Date at startup Turn on confirmation message Box Business No: 612 335 566 Do not allow transactions dated before 10-01-2022 Do not allow transactions in future Backup frequency: Weekly; turn off automatic backups Company does not use quotes, orders, packing slips Company does business in French and English Next Client &Sales Invoice number: 8133 Next Receipts number: 97 Month, day, year. Use long date format on screen and in reports. Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 3 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. FAIRNESS ENTERPRISE Chart of Accounts 1000 CURRENT ASSETS (H) 1040 Test Balance 1080 Chequing Bank Account 1100 Credit Card Bank Account 1200 Accounts Receivable 1260 Office Supplies 1280 Workbooks 1390 TOTAL CURRENT ASSETS (T) 2800 LONG TERM LIABILITIES (H) 2850 Mortgage Payable 2890 TOTAL LONG TERM LIABILITIES (T) 1400 PLANT, PROPERTY & EQUIPMENT (H) 1420 Computer 1450 Copier/Fax/Scanner 1480 Office Furniture 1500 Vehicle 1550 Office 1590 TOTAL PLANT,PROPERTY & EQUIPMENT (T) 4000 REVENUE (H) 4020 Revenue from Consulting 4100 Sales Allowances 4200 Sales Discounts 4390 TOTAL REVENUE (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) 3000 OWNER'S EQUITY (H) 3560 Steinem, Capital 3600 Net Income (X) 3690 TOTAL OWNER'S EQUITY (T) 5000 EXPENSES (H) 5020 Advertising 5030 Credit Card & Bank Fees 5040 Cleaning & Maintenance 5060 Hydro Expense 5220 Insurance Expense 5240 Interest Expense 5260 Supplies Used 5280 Telephone Expense 5300 Workbooks Used 5320 Payroll Service Fees 5590 TOTAL EXPENSES (T) . Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 4 4. Add account balances from the following Trial Balance: FAIRNESS ENTERPRISE Post-Closing Trial Balance: October 1, 2022 1080 Chequing Bank Account 1100 Credit Card Bank Account 1200 Accounts Receivable 1260 Office Supplies 1280 Workbooks 1420 Computer & Copier 1450 Copier/Fax/Scanner 1480 Office Furniture 1500 Vehicle 1550 Office 2100 Bank Loan 2200 Accounts Payable 2250 Credit Card Payable 2650 HST Charged on Services 2670 HST Paid on Purchases 2850 Mortgage Payable 3560 Steinem, Capital $10 140 2 000 1 500 550 2 500 5 000 2 500 4 200 19 000 75 000 $13 000 1 200 2 800 1 440 650 ________ $123 040 50 000 54 600 $123 040 Hint: Remember to use account 1040 Test Balance for out of balance amounts. 5. Change Account Classes: Chequing Bank Account: Change the account class to Bank and enter 1275 as the next cheque number. Credit Card Bank Account: Change the account class to Credit Card Receivable. Accounts Receivable: Change account class to Accounts Receivable. Current Assets: Change account class of accounts #1260 and 1280 to current asset. Plant, Property & Equipment: Change the account class to Capital Assets. Accounts Payable: Change the account class to Accounts Payable Credit Card Payable: Change the account class to Credit Card Payable. Long term liabilities: Change Mortgage Payable class to Long Term Debt. Expense Group accounts: Change the account class to Expense. 6. Set up credit cards: Credit Cards Accepted: Credit Cards Used: 7. Credit Card Name: ChargeAll Linked Asset Account: 1100 Discount Fee: 3% Linked Expense Account: 5030 Credit Card Name: ChargeAll Linked Payable Account: 2250 Linked Expense Account: 5030 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 Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 5 Code - H: Code - HI: Use 2650 to track taxes charged on revenues, Report on taxes Tax HST, Taxable, Rate 15%, Not included, Refundable Tax HST, Taxable, Rate 15%, Included, Refundable 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 Halifax, Nova Scotia, Canada - Options Aging periods: 30, 60 and 90 days Calculate all discounts after tax - Linked Accounts Principal Bank Account 1080 Accounts Payable 2200 Early Payment Purchase Discount and Freight Expense: leave blank Prepayments and Prepaid Orders 2200 Receivables: Address - Options - Discounts - Comment - Linked Accounts 8. Halifax, Nova Scotia, Canada Aging periods: 10, 20 and 30 day No interest charges on overdue accounts Include invoices paid in last 30 days Use tax code H as the default for new customers Terms: 2 % discount (after tax) in 10 days, net 20 days Line discounts not used On sales invoices: "Together we make it work.\" Principal Bank Account 1080 Accounts Receivable 1200 Default Revenue 4020 Freight Revenue: leave blank Early Payment Sales Discount 4200 Deposits and Prepaid Orders 1200 Create the following supplier accounts. Add the historical information provided. Name (Contact), Address Creative Signs- (Thynk Bright) 29 Adzone Lane, Halifax, NS P3C 2D2 Tax ID: 282 735 113 E-mail: better.ads@creativenet.com Supplier since: 09/01/2006 Phone/Fax Tel: (902) 494-3377 Fax: (902) 494-3333 Terms, Tax, Account Terms: net 15 Tax Code: HI Expense Account: 5020 Advertising Northern Bell 339 Speakers Avenue, Halifax, NS P3E 5G2 Web site: www.bell.ca Supplier since: 05/01/2005 Tel: (902) 310-5221 Terms: net 10 Tax Code: H Expense Account: 5280 Telephone Expense Receiver General for Canada (Margot Taxit) Summerside Tax Centre, Summerside PE C1N 6L2 Web: www.cra-arc.gc.ca Supplier since: 05/01/2005 Tel: (902) 821-8186 Terms: net 1 Tax Code: No tax (tax exempt - yes) Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 6 Unlimited Bytes (Flo P. Driver) 8 Octal Way, Liverpool, NS P3A 2K4 Tax ID: 383 736 343 E-mail: endless.space@creativenet.com Supplier since: 09/01/2007 9. Tel: (902) 494-5319 Fax: (902) 494-7229 Terms: net 30 Tax Code: H Expense Account: 1420 Computer Historical Supplier Invoices and Payments Name Terms Date Creative Signs net 15 Sep 21/22 Invoice/Chq CS-2111 Northern Bell net 10 Sep 28/22 NB-21187 Unlimited Bytes net 30 Sep 12/22 Sep 19/22 Sep 28/22 UB-3321 Chq 1270 UB-4110 Balance Owing $1 400 -1 000 400 $800 Grand Total $1 200 Amount $285 $115 Create the following customer accounts with historical information: The credit limit for all customers is $5,000. The terms for all customers are 2/10, n/20. The tax code for all customers is H. If information is not provided, leave fields blank. Name (Contact), Address Antsy Fancy ( Art Cheep) Phone/Fax Tel: (902) 493-5201 Revenue Account 4020 Revenue from Consulting Peilo Textiles Contact: Fab Rick 15 Material Road, New Gasglow, NS P3A 4F3 Customer since: 06/01/2014 Tel: (902) 492-6118 Fax: (902) 492-3911 4020 Ruffer Mfg. ( Makin Trubbel) 888 Production Ct., Dartmouth, NS P3A 7A2 Web site: www.ruffer.com Customer since: 04/15/2007 Tel: (902) 491-5002 Fax: (902) 491-4912 4020 35 Decoration Lane, Halifax, NS P3C 2E1 E-mail: acheep@hotmail.com Customer since: 03/01/2007 Historical Customer Invoices and Payments Name Terms Date Antsy Fancy 2/10, n/20 Sep 25/22 Sep 27/22 Ruffer Mfg. 2/10, n/20 Sep 22/22 Invoice/Chq 8128 Chq 3115 Balance owing 8119 Grand Total Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Amount $ 1 500 -500 $1 000 $500 $1 500 Page 7 10. Back up your files in your data folder. Continue with the original working copy of your data files, FAIRNESS.SAI. Finish entering the history. 11. Change the session date to October 8, 2022. Create shortcuts or change modules and enter the following transactions. 12. NOTE: Deposits and withdrawals, except credit card transactions use chequing bank account. Sales Invoice #8133 Dated Oct. 2, 2022 To Peilo Textiles, $3 200 plus $480 HST, for two day "Motivation for Performance\" workshop for management, including workbooks. Invoice total $3 680. Terms 2/10, n/20. Credit Card Purchase Invoice # CS-2832 Dated Oct. 4, 2022 From Creative Signs, $552, including HST to design and copy advertising brochures. Paid by ChargeAll. Payment Cheque #1275 Dated Oct. 5, 2022 To Northern Bell, $75 partial payment of account. Reference invoice #NB-21187. Sales Invoice #8134 Dated Oct. 6, 2022 To Antsy Fancy, $720 plus $108 HST for 30 workbooks for upcoming workshops. Invoice total $828. Terms 2/10, net 20. Memo #1 Dated Oct. 7, 2022 Prepare an adjusting entry for workbooks used in workshops and sold to clients. The value of workbooks remaining in the storeroom is now $1 000. Cash Purchase Invoice # MR-1369 Dated Oct. 7, 2022 From Memory Restoration Inc., $380, plus $57 HST for restoring contents of hard disk drive after computer crash. Purchase invoice total $437 paid by cheque #1276. Use Quick Add for the new supplier. Create new Group expense account 5100 Computer Maintenance. Cash Receipt #97 Dated Oct. 8, 2022 From Antsy Fancy, cheque #3199 for $1 811.44 in full payment of account including $16.56 discount for early payment. Reference invoices #8128 and 8134. Memo #2 Dated Oct. 8, 2022 Peilo Textiles received a price reduction of $400 for delays in starting the workshop resulting from technical problems. The price change was agreed at the time of the workshop. Adjust Sales Invoice #8133 to Peilo Textiles. The total amount billed should be adjusted to $2 800 plus $420 HST. Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 8 13. Change the session date to October 15, 2022. Enter the following transactions: Bank Debit Memo #WCU-77386 Dated Oct. 8, 2022 From Workers Credit Union, pre-authorized bi-weekly payroll for Ms. Money. Wages and payroll expenses $4,000 Payroll service fees 60 HST paid on payroll services 9 Total withdrawal $4,069 Create new Group expense account 5290 Wages and Payroll Expenses Cash Receipt #98 Dated Oct. 10, 2022 From Peilo Textiles, cheque #139 for $3 155.60 in payment of account, including $64.40 discount for early payment. Reference invoice #8133 and Memo #2. Purchase Invoice #UB-5001 Dated Oct. 11, 2022 From Unlimited Bytes, $300 plus $45 HST, for purchase and installment of new DVD-RW drive to upgrade computer system. Invoice total $345. Terms net 30. Bank Memo #WCU-7111 Dated Oct. 12, 2022 From Workers Credit Union, $3 155.60 for NSF cheque from Peilo Textiles. Reference invoice #8133 and cheque #139. Peilo Textiles has been notified of the unpaid account. Memo #3 Dated Oct. 13, 2022 Edit the customer record for Peilo Textiles to change the payment terms to net 10 days. Reduce the credit limit for the customer to $500. Cash Receipt #99 Dated Oct. 14, 2022 From Peilo Textiles, certified cheque #RB-77553 for $3 220 to replace NSF cheque and settle account. Reference invoice #8133 and Bank Memo # WCU-7111. Sales Invoice #8135 Dated Oct. 14, 2022 To Ruffer Mfg., $1 200, plus $180 HST for presentation to entire workforce. Invoice total $1 380. Terms 2/10, n/20. Credit Card Sales Invoice #8136 Dated Oct. 14, 2022 To Ruffer Mfg., $1 100, plus $165 HST for sale of 50 workbooks used with presentation. Invoice total $1 265. There is no discount on credit card sales. Paid by ChargeAll. Cash Receipt #100 Dated Oct. 14, 2022 From Ruffer Mfg, cheque #39002 for $500 in payment of account. Reference invoice #8119. Memo #4 Dated Oct. 15, 2022 Prepare an adjusting entry for workbooks used in workshops and sold to clients. The value of workbooks remaining in the storeroom is now $400. Cheque Purchase Invoice #QQ-88221 Dated Oct. 15, 2022 From Quiq Qopy, $1 200 for extra copies of workbooks, plus $180 HST. Invoice total $1 380. Paid by cheque #1277. Use Quick Add for the new supplier. Purchase Invoice #NB-36994 Dated Oct. 15, 2022 From Northern Bell, $150, plus $22.50 HST for one month of telephone and Internet service. Invoice total $172.50. Terms: net 10. Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 9 Bank Memo #WCU-8277 Dated Oct. 15, 2022 From Workers Credit Union, $900 for regular monthly bank loan payment. This amount includes $800 principal and $100 interest. 14. Print and assemble the following reports in the order indicated and hand in to your instruct tor: Note: Make sure your name appears as part of the company name at the top of each report. 1. Journal Entries for all journals from October 1 to October 15, 2022 Show corrections. 2. Comparative Balance Sheet (with percent difference) at October 1, 2022 and October 15, 2022 3. Income Statement from October 1 to October 15, 2022 4. Supplier Aged Summary Report 5. Customer Aged Summary Report Computerized Accounting with Sage 50 Level 1 (SI1O) Final Project 2 Page 10