Sage 50, 2015

The information provided in this test allows you to set up the General, Payables and Receivables ledgers for a Nova Scotia company named EQUITY ENTERPRISE, owned and run by G. Money. There are no employees in this company. Equity 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 new company file using the following information:

Company Name: Equity Enterprise

Address:449 Motivate Crescent

Halifax, Nova Scotia

P3A 1C5

Phone:(902) 662-8610Fax:(902) 662-2992

Fiscal start: 10-01-2017

Earliest transaction date: 10-01-2017

Fiscal end: 12-31-2017

Select: Let me build the list of accounts myself after the company is created

Industry:Service

Store company files in a new folder named EQUITY and use Equity 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 OptionsUse Accounting Terms

Automatically save changes to Suppliers, Clients and Other Records

Show list buttons

User Preferences ViewTurn 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

User Preferences TransactionTurn on confirmation message Box

Company Information SettingsBusiness No:612 335 566

Company System SettingsDo not allow transactions dated before 10-01-2017

Do not allow transactions in future

Backup frequency: Weekly; turn off automatic backups

Company Features SettingsCompany does not use quotes, orders, packing slips

Company does business in French and English

Company Forms SettingsNext Client &Sales Invoice number: 8133

Next Receipts number: 97

Company Date Format SettingsMonth, day, year. Use long date format on screen and in reports.

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.

EQUITY 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)

1400 PLANT, PROPERTY & EQUIPMENT (H)

1420 Computer

1450 Copier/Fax/Scanner

1480 Office Furniture

1500 Vehicle

1550 Office

1590 TOTAL PLANT,PROPERTY & EQUIPMENT (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)

2800 LONG TERM LIABILITIES (H)

2850 Mortgage Payable

2890 TOTAL LONG TERM LIABILITIES (T)

3000 OWNER'S EQUITY (H)

3560 Steinem, Capital

3600 Net Income (X)

3690 TOTAL OWNER'S EQUITY (T)

4000 REVENUE (H)

4020 Revenue from Consulting

4100 Sales Allowances

4200 Sales Discounts

4390 TOTAL REVENUE (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)

Print the Chart of Accounts.

4.Add account balances from the following Trial Balance:

EQUITY ENTERPRISE

Post-Closing Trial Balance: October 1, 2017

1080 Chequing Bank Account$10 140

1100 Credit Card Bank Account2 000

1200 Accounts Receivable1 500

1260 Office Supplies550

1280 Workbooks2 500

1420 Computer & Copier5 000

1450 Copier/Fax/Scanner2 500

1480 Office Furniture4 200

1500 Vehicle19 000

1550 Office175 000

2100 Bank Loan$13 000

2200 Accounts Payable1 200

2250 Credit Card Payable 2 800

2650 HST Charged on Services1 440

2670 HST Paid on Purchases650

2850 Mortgage Payable50 000

3560 Steinem, Capital________54 600

$123 040$123 040

Hint: Remember to use account 1040 Test Balance for out of balance amounts.

Print the Trial Balance after entering all the 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 Card Name: ChargeAll

Linked Asset Account: 1100

Discount Fee: 3%

Linked Expense Account: 5030

Credit Cards Used:Credit Card Name: ChargeAll

Linked Payable Account: 2250

Linked Expense Account: 5030

7.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

Use 2650 to track taxes charged on revenues, Report on taxes

Code - H:Tax HST, Taxable, Rate 15%, Not included, Refundable

Code - HI:Tax HST, Taxable, Rate 15%, Included, Refundable

Enter Ledger Settings: Allow account classes to change.

General (Accounts): Budgeting should be turned off

- Linked AccountsRetained Earnings 3560

Current Earnings 3600

Payables: AddressHalifax, Nova Scotia, Canada

- OptionsAging periods: 30, 60 and 90 days

Calculate all discounts after tax

- Linked AccountsPrincipal Bank Account 1080

Accounts Payable 2200

Early Payment Purchase Discount and Freight Expense: leave blank

Prepayments and Prepaid Orders 2200

Receivables: AddressHalifax, Nova Scotia, Canada

- Options 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

- DiscountsTerms: 2 % discount (after tax) in 10 days, net 20 days

Line discounts not used

- CommentOn sales invoices: "Together we make it work."

- Linked AccountsPrincipal Bank Account 1080

Accounts Receivable 1200

Default Revenue 4020

Freight Revenue: leave blank

Early Payment Sales Discount 4200

Deposits and Prepaid Orders 1200

8.Create the following supplier accounts.

Add the historical information provided.

(NEED NOT TO PUT THE DETAIL ADDRESS)

Name (Contact), AddressPhone/FaxTerms, Tax, Account

Creative Signs- (Thynk Bright)Tel: (902) 494-3377Terms: net 15

29 Adzone Lane, Halifax, NSP3C 2D2Fax: (902) 494-3333Tax Code: HI

Tax ID: 282 735 113Expense Account:

E-mail: b..s at creativenet.com5020 Advertising

Supplier since: 09/01/2006

Northern BellTel: (902) 310-5221Terms: net 10

339 Speakers Avenue, Halifax, NSP3E 5G2 Tax Code: H

Web site: www.bell.caExpense Account:

Supplier since: 05/01/20055280 Telephone Expense

Receiver General for Canada (Margot Taxit) Tel: (902) 821-8186Terms: net 1

Summerside Tax Centre, Summerside PEC1N 6L2Tax Code: No tax

Web: www.cra-arc.gc.ca(tax exempt - yes)

Supplier since: 05/01/2005

Unlimited Bytes (Flo P. Driver)Tel: (902) 494-5319Terms: net 30

8 Octal Way, Liverpool, NSP3A 2K4Fax: (902) 494-7229Tax Code: H

Tax ID: 383 736 343Expense Account:

E-mail: e..e at creativenet.com1420 Computer

Supplier since: 09/01/2007

Historical Supplier Invoices and Payments

NameTermsDateInvoice/ChqAmount

Creative Signs net 15Sep 21/17CS-2111$285

Northern Bellnet 10Sep 28/17NB-21187$115

Unlimited Bytes net 30Sep 12/17UB-3321$1 400

Sep 19/17Chq 1270-1 000

Sep 28/17UB-4110400

Balance Owing$800

Grand Total$1 200

9.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), AddressPhone/FaxRevenue Account

Antsy Fancy ( Art Cheep)Tel: (902) 493-52014020 Revenue from Consulting

35 Decoration Lane, Halifax, NS P3C 2E1

E-mail: a..p at hotmail.com

Customer since: 03/01/2007

Peilo Textiles Contact: Fab RickTel: (902) 492-61184020

15 Material Road, New Gasglow, NSP3A 4F3Fax: (902) 492-3911

Customer since: 06/01/2014

Ruffer Mfg. ( Makin Trubbel)Tel: (902) 491-50024020

888 Production Ct., Dartmouth, NSP3A 7A2 Fax: (902) 491-4912

Web site: www.ruffer.com

Customer since: 04/15/2007

Historical Customer Invoices and Payments

NameTermsDateInvoice/ChqAmount

Antsy Fancy2/10, n/20Sep 25/178128$ 1 500

Sep 27/17Chq 3115-500

Balance owing$1 000

Ruffer Mfg.2/10, n/20Sep 22/178119$500

Grand Total$1 500

Print the Customer Aged Detail Report for all customers. Include terms.

10.Back up your files in your data folder.

Continue with the original working copy of your data files, EQUITY.SAI.

Finish entering the history.

11.Change the session date to October 8, 2017. 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 #8133Dated Oct. 2, 2017

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-2832Dated Oct. 4, 2017

From Creative Signs, $552, including HST to design and copy advertising brochures. Paid by ChargeAll.

Payment Cheque #1275Dated Oct. 5, 2017

To Northern Bell, $75 partial payment of account. Reference invoice #NB-21187.

Sales Invoice #8134Dated Oct. 6, 2017

To Antsy Fancy, $720 plus $108 HST for 30 workbooks for upcoming workshops. Invoice total $828. Terms 2/10, net 20.

Cash Purchase Invoice # MR-1369Dated Oct. 7, 2017

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 #97Dated Oct. 8, 2017

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.

13.Change the session date to October 15, 2017. Enter the following transactions:

Cash Receipt #98Dated Oct. 10, 2017

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-5001Dated Oct. 11, 2017

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-7111Dated Oct. 12, 2017

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 #3Dated Oct. 13, 2017

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 #99Dated Oct. 14, 2017

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 #8135Dated Oct. 14, 2017

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 #8136Dated Oct. 14, 2017

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 #100Dated Oct. 14, 2017

From Ruffer Mfg, cheque #39002 for $500 in payment of account. Reference invoice #8119.

14.Send the following reports:

Comparative Balance Sheet

Income Statement from October 1 to October 15, 2017