love it again sage 50 chapter 4

100 1800 LOVE IT AGAIN - GENERAL LEDGER SETUP 113 It Again 4-A Charity Bivd Toronto, ON M4G 2T2 MEMO #6 Date : From : September 30, 2023 Jeremy Fischer Re : Final account adjustments required to clear outdated inventory of supplies and other goods (all items donated to family shelters ) cost of purchased books donated $ 570 Cost of purchased clothing donated 1 280 cost of other purchases donated 1 990 Authorization: JF KEYSTROKES FOR CLOSING NOTES You cannot start a new fiscal Starting a New Fiscal Period period in multi-user mode. Starting a new fiscal period is not a reversible step, so you should prepare a complete set of financial reports and make a backup of the data set as instructed in the next memo. Memo #7 Dated September 30/23 WARNING! You should advance to the All accounts for the year are settled, so the books can be closed. Make a backup new fiscal period in two steps. of the data files. Start a new fiscal period to close the books. First advance to the last day of the Print all the financial reports for Love It Again for September 30, 2023. current fiscal period, and then advance to the first day of the Back up your data files with a file name that indicates it is the year-end copy. new fiscal period. This control feature prevents you from There are two methods for beginning a new fiscal year. The first is the method we advancing by mistake and losing have been using to change the session date. important data or forgetting year- end adjusting entries. Choose the Maintenance menu and click Change Session Date or click the Calendar icon beside Session Date. The first date of the new fiscal period is always on the drop-down list of dates in the WARNING! Session Date window. The program will not accept any dates later than October 1, 2023. Initially, from the last day of Type October 1, 2023 or choose this date from the date field list or the fiscal period, you cannot advance the session date past Calendar icon. October 1, the first day of the new fiscal period.SESSION DATE - AUGUST 28, 2023 Cash Purchase Invoice #PH-9976 Dated August 24/23 NOTES From Pizza House, $320 plus $41.60 HST for pizza and soft drinks to show Charge pizza purchase to appreciation to volunteers. Invoice total $361.60. Paid from Cash on Hand. Miscellaneous Expenses. Payment Cheque #3424 Dated August 26/23 To Wearable Designs, $576.30 in payment of account. Reference invoices #WD-2919 and #WD-1813. Bank Debit Memo #HB-3881 Dated August 28/23 From Heartfelt Bank, $45.50 in bank charges for cheques and statement preparation. Create new Group account 5010 Bank Charges. Bank Debit Memo #HB-3996 Dated August 28/23 From Heartfelt Bank, $4 200 for payroll including all payroll expenses to pay store manager Jeremy Fischer wages for one month.LOVE IT AGAIN - GENERAL LEDGER SETUP 111 Click OK to confirm that you entered the date you intended . Cheque Purchase Invoice #PFU-9328 Dated September 1/23 From Places For Us, $1 800 plus $234 HST for monthly rent. Invoice total $2 034 paid by cheque #3426. Terms: payable on first day of each month. Purchase Invoice #BC-18588 Dated September 2/23 From Bell Canada, $145 plus $18.85 HST for monthly telephone and Internet service. Invoice total $163.85. Terms: net 15. Payment Cheque #3427 Dated September 2/23 To Kids In Motion, $2 503 in full payment of invoices #KIM-10990 and #KIM- 8697. Payment Cheque #3428 Dated September 12/23 To Bell Canada, $163.85 in full payment of invoice #BC-18588. Funds Raised Form #FR-23-10 Dated September 13/23 Received $4 000 plus $520 HST for advertising on the charity's website. Total revenue received $4 520 deposited to Bank. Create new account: 4180 Revenue: Advertising. SESSION DATE - SEPTEMBER 29, 2023 NOTES Memo #3 Dated September 19/23 The year-end advisor may From Fischer: Presented Sunni Husein with $200 gift certificate for Volunteer appear again when you advance Extraordinaire Award. Create new Group account 5430 Employee Gifts. Paid for the date to September 29. The warning about the date gift certificate from Cash on Hand. being more than one week past the previous session date will be Bank Debit Memo #HB-8310 Dated September 20/23 displayed again. From Heartfelt Bank, $240 plus $31.20 HST for payroll services for one year. Total withdrawal from chequing account was $271.20. Create new expense account 5380 Payroll Services. Bank Debit Memo #HB-9778 Dated September 28/23 From Heartfelt Bank, $4 200 for payroll, including all payroll expenses, to pay store manager Jeremy Fischer wages for one month. Funds Received Form #FR-23-11 Dated September 29/23 Received $800 in donations. Amount deposited to Bank: Love It Again account. Cash Purchase Invoice #CP-2 Dated September 29/23 2 From Canada Post, $200 plus $26 HST for postage to mail donation receipts. Invoice total $226. Paid from Cash on Hand. Sales Summary Form #FR-23-12 Dated September 29/23 Summary of sales receipts during the month. Revenue from donated items Revenue from purchased clothing & books $2 500 7 200 Revenue from other purchased items GST @ 5% 8 000 HST @ 13% 360 Total $19 100 deposited to Cash on Hand. 1 040180 112 CHAPTER 4 Memo #4 Dated September 29/23 From Fischer: Deposited $18 500 from Cash on Hand (receipts from sales) to Bank: Love It Again. Bank Debit Memo #HB-10921 Dated September 29/23 From Heartfelt Bank, withdraw $14 200 from chequing account to repay loan for $14 000 plus $200 interest. Create new Group account 5100 Interest Expense. Bank Debit Memo #HB-10998 Dated September 29/23 From Heartfelt Bank, $45.50 in bank charges for cheques and statement preparation. Adjusting Closing Entries NOTES Adjusting entries always Two source document entries - adjustments for the remaining supplies - provide the involve an Income Statement and details for these year-end adjustments for Love It Again. For other businesses, adjusting a Balance Sheet account. For entries include depreciation entries, inventory adjustments, adjustments for prepaid example, you might debit Supplies expenses that have expired, accrued wages and so on. Most adjusting entries do not Used (Income Statement account) and credit Supplies (asset account have an external source document that reminds you to complete them , and most of them on the Balance Sheet), or debit are General Journal entries. Unearned Revenue and credit Customer Prepayments. Change the session date to September 30. If you had not advanced the session date on September 29, you would receive an Advisor message about preparing for year-end. This message is usually displayed on a date very close to the end of the fiscal period. Close the Advisor window if necessary and back up your data files. Continue with the two adjusting entry transactions. NOTES Donated items are not included in these costs - no purchase cost is associated with them. 4-A Charity Blvd. Toronto, ON M4G 2T2 MEMO #5 Date: September 30, 2023 From: Jeremy Fischer Re : Adjustments required for year-end (cost of goods sold, supplies used and prepaid expenses expired) Cost of books sold Cost of clothing sold $1 990 Cost of other purchased items sold 4 155 office supplies used 8 200 Other supplies used 120 Prepaid utilities 680 290 Authorization:Advancing the Session Date Sage 50 warns you as you approach the end of a fiscal period because important end-of- period adjusting entries are usually required. Change the session date to August 31. An Advisor message about preparing for year-end opens. Sage 50 displays this message about one month before the end of the fiscal period: Advisor : Now is a good time to prepare for your company's year end Refer to for more information (Click here to close. ] Click to close the Advisor, back up your data files and continue with the transactions for August 31. NOTES O SALES SUMMARY FORM: FR-23-09 No taxes are charged on Date: August 31, 2023 sales of donated goods. Children's 4-A Charity Blvd. Toronto, ON Comment: Summary of cash receipts clothing and books are subject to M4G 2T2 sales in August 2023 5% GST, while HST at 13% is charged on sales of other purchased items. Description Amount Sales of donated items $4 200.00 Sales of purchased clothing & books 4 300.00 Sales of other purchased items 8 680.00 GST on books and clothing sold HST on sales of other purchased items 215 .00 1 128 .40 Received in cash by August 31, 2023 Signature: Jeremy Fischer Total $18 523.40 Memo #2 Dated August 31/23 From Fischer: Deposited $18 200 from Cash on Hand (receipts from sales) to Bank: Love It Again. Payment Cheque #3425 Dated August 31/23 To Kids Stuff, $1 849 in full payment of account. Reference invoices #KS-9493 and #KS-6279. SESSION DATE - SEPTEMBER 15, 2023 When you change the session date to September 15, you will receive a date warning: Sage 50 Warning The date entered is more than one week past your previous session date of Aug 31, 2023. OK Cancel Normally a business would advance the session date by a shorter period, so the warning helps you avoid entering the wrong session date