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,Start 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:                               9999-A New St., Toronto, Ontario M5W 1G6                   

        Phone:                                  (647) 523-8191            Fax: (647) 525-8819

        Fiscal start:                           04-01-2017                                                             

        Earliest transaction date:        04-01-2017

        Fiscal end:                            06-30-2017

        Select: Start 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.

2.     Change the default settings if necessary to include the following:

        User Preferences:

         - Options                             Use Accounting Terms

                                                    Automatically save changes to Suppliers, Clients and Other Records

                                                     Show list buttons in SAGE 50

          - View:                              Turn off Checklists and Daily Business Manager at startup

                                                     and after changing session date

                                                     Show Change Session Date at startup

         - Transactions                      Turn on Confirmation Message Box

        Company Settings:                 

         - Information                        Business No: 872 197 639

         - System:                             Do not allow transactions dated before 04-01-2017

                                                    Do not allow transactions in future

         - Backup                              Backup frequency: Weekly; turn off automatic backups

         - Features                            Use all features

         - Forms                                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

        Date Format:                        MM, DD, YYYY. Use long date format on screen and in reports

 

3.     Start 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 CSB Plan Payable

2460 WSIB Payable

 

  

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)

 Print the Chart of Accounts for reference.

 4.       Add account balances from the following Trial Balance:      Post-Closing Trial Balance for Dermal Decor: April 1, 2017

        1080 Bank: CAD Chequing                      $24 130

        1090 Bank: USD Chequing                           1 550

        1100 Bank: Credit Card                              2 200

        1200 Accounts Receivable                          2 800

        1240 Advances Receivable                               150

        1300 Sterilized Needles                                   650

        1320 Other Supplies                                       400

        1640 Sterilization Equipment                        4 800

        1650 Computers and Video Monitors            6 500

        1660 Tattoo Equipment                               12 000

        1680 Store Fixtures and Displays                  4 500

        1690 Store                                               120 000

        1420 Tattoo Designs                                 10 800

        1440 Ink                                                     1 030

        2100 Bank Loan                                                                            $ 6 000

        2150 Credit Card Payable                                                               1 200

        2200 Accounts Payable                                                                       4 500

        2300 Vacation Payable                                                                        360

        2310 EI Payable                                                                                145

        2320 CPP Payable                                                                              390

        2330 Income Tax Payable                                                                   625

        2650 HST Charged on Sales (A)                                                       1 890

        2670 HST Paid on Purchases (A)                  1 620

        2850 Mortgage Payable                                                                  60 000

        3560 D. Zines, Capital            _______                                            118 020

                                                                     $193 130                                $193 130

 

5.     Add foreign currency. Allow transactions with United States suppliers in US dollars.

Use account 5015 to track exchange rate differences.

        Enter 1.019 the exchange rate for Apr. 1, 2017. Display the reminder if the rate is one day old.

 

6.    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 $1 515 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.

  

7.    Set up credit cards as follows:

        Credit Cards Accepted:Credit Card Name: Wishful

                                         Discount Fee: 3.5%

                                         Linked Asset Account: 1100

                                         Linked Expense Account: 5010

                                         

        Credit Cards Used:    Credit Card Name: Wishful

                                         Linked Payable Account: 2150

                                                  Linked Expense Account: 5010

8.     Enter Sales Taxes and Tax Codes

        Tax - HST:               Not Exempt, Not Taxable, Use 2670 to track tax paid on expenses.

                                        Use 2650 to track taxes charged on revenue. Report on taxes

        Code - H:                 Tax HST, Taxable, Rate 13%, Not included, Refundable

        Code - HI:       Tax HST, Taxable, Rate 13%, Included, Refundable

9.     Enter the ledger settings.

        Leave unused linked accounts blank. Allow account classes to change.

        General: Linked Accounts      Retained Earnings 3560

                                                    Current Earnings 3600

        Payables Settings: Address    Toronto, Ontario, Canada

        - Linked Accounts                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

        Receivables Settings: Address Toronto, Ontario, Canada

        - Options                              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

        - Discounts                           Payment terms: 1% after tax discount in 15 days; net 30 days

                                                     Line discounts are not used

        - Comment                            On Client Invoices: Beauty can be skin deep.

        - Linked Accounts                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

                                                    Deduction 1: CSB Plan (Canada Savings Bond)

                                                    Delete other Deduction names

        Names - Additional Payroll:   Worker's Comp: WSIB

                                                     User-Defined Expense 1: Medical (this is an employee benefit)

        (Payroll Settings Cont'd)

                                                     User-Defined Expense 2: Tuition

                                                    Entitlement 1: Sick Leave

                                                    Entitlement 2: Vacation

                                                    Delete other User-Defined Expense and Entitlement names

        Incomes                               Regular and Overtime 1: Type - Hourly rate

                                                       Calculate tax, EI, Insurable Hours, CPP, EHT and vacation

                                                    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

                                                        Calculate tax, CPP and EHT

        Deductions                            CSB Plan by amount

                                                       deduct after calculating tax, EI, CPP, EHT and vacation

        Taxes                                   EI Factor is 1.4

                                                     WSIB rate is 2.02

                                                    EHT factor is 0.98

        Payroll Entitlements:              Vacation: Track - 6%; Maximum 25 days; Do not clear at Year-end

                                                     Sick Leave: Track - 2.5%; Maximum 15 days; Clear at Year-end

        Linked Accounts - Income    Bank 1080                                                 

                                                    Vacation (Owed) 2300

                                                    Advances & Loans 1240

                                                     Use 5300 for Vacation Earned, Regular, Overtime, Salary,

                                                   Commission, No. Clients and Tuition

         - Deductions:                      CSB 2400

         - Taxes:                               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.

         - User-Defined Expenses:     Payables - Medical 2380

                                                     Payables - Tuition 2390

                                                     Expenses - Medical 5380

                                                     Expenses - Tuition 5400

        Inventory Settings:Options:     Sort by description

                                                    Profit evaluation by markup

                                                    Do not allow inventory to drop below zero

        - Linked Accounts                 Adjustment Write-off 5030

        Division Settings:                   Change the name of Project to Division    

           - Allocation                       Allocate by percentages - Payroll & Other Transactions

                                                    Warn if division allocation is not complete

                                                    Allow access to Allocate field using Tab key

  

10.   Create the following supplier accounts with historical information:

Name (Contact), Address                                 Phone/Fax                  Options, Tax, Account

Full Spectrum (Manny Colors)                           Tel: (716) 662-6682      Terms: 2/15, n/30 (after tax)

189 Indigo Way, Buffalo, New York, USA 14209  Fax: (716) 662-6164      Tax Code: H

                                                           Currency: USD

Medi-Specs (I.N. Spector)                                 Tel: (613) 774-7109      Terms: net 15 (after tax)

512 Monitor Ct., Ottawa, ON K6T 7F3                Fax: (613) 774-7799      Tax Code: H

Skin Decals, Inc. (Art)                                      Tel: (905) 526-7191      Terms: 2/5, n/15 (after tax)

899 Creative Way, Oakville, ON L5R 2V7                                               Tax Code: H

Tax ID: 887 210 092                                                                                

                                

Historical Supplier Invoices and Payments

Name                          Terms                     Date            Invoice/Chq     Amount

Full Spectrum              2/15, n/30 after tax    Mar 15/17     FS-3903                   $970 USD

                                                                                                                          (990  CAD)

Skin Decals, Inc.          2/5, n/15 (after tax)    Mar 25/17     SD-621                 $3 800

                                                                                         Chq 398               -1 800

                                                                   Mar 30/17     SD-808                  1 510

                                                                                         Balance owing       $3 510

                                                                                        Grand Total        $4 500

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.

Customer accounts: 

Name (Contact), Address                                 Phone/Fax

Hart Bridal Party (Bonnie Hart)                         Tel: (647) 762-6712

Preferred Price List                                             Fax: (647) 762-9991

55 Blissful Blvd., Toronto, ON M1P 7D3                                              

Stan Stoner                                                       Tel: (416) 592-9001

110 Abbey Rd., Toronto, ON  M8C 9A1                                              

 

 

Historical Customer Invoices and Payments 

Name                             Terms                  Date            Invoice/Chq     Amount

Stan Stoner                    1/15, n/30               Mar 28/17     3104                     $4 300

                                                                    Mar 28/17     Chq 32                 -1 500

                                                                                         Balance owing     $2 800

 12.   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.

Personal                                        Magenta Dyes                                          Carmine Painter

Address                                         345 Ochre Blvd.                                         22 Crimson Ave.

                                                     Toronto, ON M4H 4R2                              Toronto, ON M3C 3W1           

                                                     (416) 882-6234                                           (647) 598-7177

SIN#                                             624 514 774                                               621 628 999

Birth Date                                      Apr. 15, 1974                                             Dec. 23, 1980

Date of Hire                                  Feb. 1, 2007                                               Mar. 23, 2017

Taxes

Tax Table                                      Ontario                                                     Ontario

Federal Claim                                 $21 054                                                     $10 527

Provincial Claim                             $16 834                                                     $9 104 

(Entire claim amounts are subject to indexing)

Additional Federal Tax                                                                                      $100

Deduct EI & CPP (EI Factor)       Yes, Yes (1.4)                                           Yes, Yes (1.4)

Historical Income Tax                    $1 202

Historical EI Contributions              $167

Historical CPP Contributions           $474

Income

Advances Historical Amount          $150

Benefits (medical plan)                   $10                                                           $20

Benefits Historical Amount             $130

Vacation                                        6% retained                                                           3 weeks (0%)  

Vacation Owed                              $360.00

Salary                                           (do not use)                                                $2 200 bi-monthly         

Salary Hours per Period                                                                                   80 (Salary hours)          

Regular Wage                                $18.00/hr                                                   (do not use)      

Hours per Period                            35 (Regular hours)                                                 

Regular Wage Historical Amount    $8 190

Overtime wage                              $27.00/hr                                                   (do not use)      

Overtime Wage Historical Amount  $702

Commission                                   (do not use)                                                1% of revenue

No. Clients                                     $5                                                              (do not use)      

No. Clients Historical Amount         $780

Tuition                                           $50                                                           (do not use)

Tuition historical amount                 $650

Pay Periods per Year                     52                                                             24

Deductions

CSB Deductions per Pay                $50.00                                                      $50.00

CSB Historical Contributions          $650.00

WSIB and Other Expenses

WSIB Rate                                    2.02%                                                       2.02%

Medical per pay (Historical Medical)                 $10.00 ($130.00)                     $20.00

Tuition per pay (Historical Tuition)   $50 ($650.00)

 

 

                                                    Magenta Dyes                                           Carmine Painter

Entitlements (Percentage for tracking, maximum days)

Sick Leave                                     2.5%, 15 days max; clear                            2.5%, 15 days max; clear

Historical Sick Leave days              4

Vacation                                                                                                   6.0%, 25 days max; not cleared

Historical Vacation days                 

Direct Deposit (100% of paycheques deposited)

Branch No., Institution No. and Account numbers 38648, 223, 45567                   16678,221,  2435644

T4 and RL-1 Reporting

Historical EI Insurable Earnings      $9 672       

Historical Pensionable Earnings       $10 452

 

13.   Set up a payroll authority.

Start a new supplier record for the Receiver General for Canada as the payroll authority for Income Tax, EI and CPP. Leave the remaining supplier fields blank.

Settings -Payroll: Remittance and suppliers-Receiver General for Canada

                         Remitting frequency - Monthly

                         End of remittance period - April 15, 2017.

14.   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.

15 Make 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:                                        Reg   (Pref)           Opening    Linked Accounts

Description                  No. Unit               Min Price (Price)  Qty  Value     Asset Rev   C.O.G.S.

Ink - Permanent Colour  101 10 tubes/box   50       $10       ($8)     80    $320     1440   4020   5060

Ink - Permanent Outline  102 10 tubes/box   20         10        (8)     50      250     1440   4020   5060

Ink - Temporary Colour 201 10 tubes/box   50          8        (7)     60      300     1440   4020   5060

Ink - Temporary Outline  202 10 tubes/box   20          7        (5)     40      160     1440   4020   5060

Design - Small               301 each               10         25      (20)   100   1 400     1420   4020   5060

Design - Medium            302 each               10         60      (50)   100  2 900     1420   4020   5060

Design - Large               303 each               10       100      (90)   100   6 500     1420   4020   5060

Design - Special Order    304 each                Custom Pricing                                1420   4020   5060

                                                                                                

Service                            No.  Unit        Reg Price   (Pref Price)    Tax           Rev    Expense 

Tattoo application               501   session          $80              ($70)          HST           4060    5070

Design Creation                 502   each     Custom pricing                        HST           4060    5070

 

16.   Create two divisions starting April 1, 2017.

1. Sales     2. Services            There are no balances forward. Select:

Warn of allocation is not completed and select: Status completed. 

 17.   Back up your work.

Continue with the original working copy, DERMAL.SAI. Finish entering the history.

18.   Change the session date to April 8, 2017 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, 2017

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                                         Dated April 3, 2017

Shipping Date April 11, 2017

From Skin Decals, Inc.

20 Designs - Small ($13 ea)                     $260.00

10 Designs - Medium ($27 ea)                   270.00

10 Designs - Large ($58 ea)                      580.00

Courier Freight Charge                                40.00

HST Paid                                                 149.50

Invoice Total                                         $1 299.50

        Terms: 1/10, net 30.

        Edit the default prices and terms.

Cash Receipt #356                                           Dated April 4, 2017

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, 2017

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.

Payment Cheque #433                                     Dated April 4, 2017

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.

Purchase Invoice #FS-4972                             Dated April 5, 2017

From Full Spectrum,

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)  160.00  USD

HST Paid                                                   88.40  USD

Invoice Total                                           $768.40  USD

Terms: 2/15, net 30

The exchange rate is 1.001 (the exchange rate difference amount may not be allocated)

Edit the default prices.

Cheque Copy #119                                           Dated April 6, 2017

To Full Spectrum, $970 USD in full payment of invoice #FS-3903. The exchange rate is 0.990. Paid from Bank: USD Chequing Account.

Sales Quote #32                                               Dated April 6, 2017

Delivery Date April 15, 2014

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                                         Dated April 6, 2017                  

To Wanda Wonder (Use Quick Add for new Regular customer)

15 Ink - Permanent Colour                           $ 10  /tube

 6 Ink - Permanent Outline                              6  /tube

 2 Designs - Medium                                      60  each

 1 Design - Large                                         100  each

 5 Tattoo applications                                      80  /session

HST Charged                                                  13  %

Terms: 1/15, net 30.

Allocate 100% of sales to Sales Division and 100% of services to Services Division.

Memo #1                                                          Dated April 6, 2017

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.

Cash Receipt #357                                           Dated April 7, 2017

From Hart Bridal Party, cheque #188 for $400 as deposit #106 to accept sales order #32.

Deposit Slip #607                                             Dated April 7, 2017

Deposit two cheques received in the past week. Total deposit is $3 157.

Cash Sales Invoice #3111                                Dated April 8, 2017

To One-time cash customers

12 Ink - Permanent Colour                             $10  /tube

 5 Ink - Permanent Outline                               6  /tube

 6 Ink - Temporary Colour                               8  /tube

 2 Ink - Temporary Outline                               7  /tube

15 Designs - Small                                         25  each

15 Tattoo applications                                       80  /session

HST Charged                                                  13  %

$2 019.31 received in cash.

Allocate 100% of sales to Sales Division and 100% of services to Services Division.

Memo #2                                                          Dated April 8, 2017

Pay hourly employee, Magenta Dyes for 35 hours regular work.

Recover $50 advance. Dyes should be paid for serving 10 clients (No. Clients piece rate pay).

Allocate 30% of payroll expenses to Sales and 70% to Service. Issue deposit slip #68.

Hints: Use Payroll cheque run. Accept: Payroll Tables are out of date

 

19.   Back up the data files. Continue with the file DERMAL.SAI.

 

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

Purchase Invoice #SD-986       Dated April 11, 2017

To fill Purchase Order #55

From Skin Decals, Inc.

20 Designs - Small ($13 ea)                     $260.00

10 Designs - Medium ($27 ea)                   270.00

10 Designs - Large ($58 ea)                      580.00

Courier Freight Charge                                40.00

HST Paid                                                 149.50

Invoice Total                                         $1 299.50

        Terms: 1/10, net 30 (new payment terms).

        Allocate 100% of freight expense to Sales Division.

Memo #3                                                          Dated April 11, 2017

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                                         $120

                    Other supplies                                                $80

                    Tattoo gun                                                   $250

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.)

Cash Receipt #358                                           Dated April 11, 2017

From Wanda Wonder, cheque #344 for $901.67 in payment of invoice #3110, taking into account 1% sales discount of $9.11 for early payment.

Cash Receipt #359                                           Dated April 11, 2017

From Stan Stoner, cheque #2789 for $1 000 as deposit #107 in prepayment for tattoo work to be completed over several weeks.

Sales Invoice #3112                                         Dated April 13, 2017

To Stan Stoner

 4 Designs - Large                                     $100  each

10 Ink - Permanent Outline                              10  /tube

40 Ink - Permanent Colour                              10  /tube

20 Tattoo application                                        80  /session

HST Charged                                                  13  %

Terms: 1/15, net 30

Allocate 100% of sales to Sales Division and 100% of services to services Division. Accept message.

 Sales Invoice #3113                                         Dated April 15, 2017

To Hart Bridal Party, to fill sales order #32

10 Ink - Temporary Colour                              $7  /tube

10 Ink - Temporary Outline                               5  /tube

20 Designs - Small                                          20  each

10 Tattoo application                                       70  /session 

HST Charged                                                  13  %

Terms: 1/15, net 30.

Allocate 100% of sales to Sales Division and 100% of services to services Division.

Credit Card Sales Invoice #3114                     Dated April 15, 2017

To One-time credit card customers

20 Ink - Permanent Colour                             $10  /tube

 9 Ink - Permanent Outline                              10  /tube

 8 Ink - Temporary Colour                               8  /tube

 4 Ink - Temporary Outline                               7  /tube

10 Designs - Medium                                     60  each

20 Tattoo application                                        80  /session

HST Charged                                                  13  %

Invoice total $2917.66 paid by Wishful.

Allocate 100% of sales to Sales Division and 100% of services to Services Division.

 Purchase Order #56                                         Dated April 15, 2017

Delivery Date: April 28, 2014

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 0.985.

Purchase Invoice # MS-903                             Dated April 15, 2017

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.

Deposit Slip #608                                             Dated April 15, 2017

Deposit two cheques received in the past week totaling $1 901.67 and $2 019.31 in cash that consisted of 23 ´ $5, 12 ´ $10, 14 ´ $20, 10 ´ $50, 10 ´ $100 and $4.31 in coins. 

 Total deposit amount was $3 920.98.

Memo #4                                                          Dated April 15, 2017

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, 2017

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.

 

Memo #6                                                          Dated April 15, 2017

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 0.985.

Bank Debit Memo #RCU-4433                       Dated April 15, 2017

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, 2017

Make payroll tax remittance to the Receiver General for the pay periods ending April 15, 2017. 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

Expense1: Bank Charges 5010 Bank & Credit Card Fees

Expense2: NSF fee 5010 Bank & Credit Card Fees

Adjustment: 5005 Reconciliation Adjustments

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

                                      Source          Description                    Date                           Amount

                                      606               Deposit slip                    Mar 29             Deposit $2 600

                                      431               Skin Decals, Inc.            Mar 30           Payment $1 800

(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     deposits  balance

Mar. 15                                Balance forward                                                    23 330.00

Mar. 29                                Deposit 606                                            2 600.00

Mar. 30                                Cheque 431          -              1 800.00

Apr. 1                                   Interest on account                                 15.00

Apr. 1                                   Cheque 432          -              2 373.00

Apr. 4                                   Cheque 433          -              3 679.80

Apr. 8                                   Deposit 607                                            3 157.00

Apr. 8                                   Payroll transfer Ref #68                         467.40

Apr. 15                                 Deposit 608                                            3 920.98

Apr. 15                                 Debit memo          -                600.00

Apr. 15                                 Transfer from 04328-476199                    4000.00

Apr. 15                                 Transfer to 04328-59990                          1 970.00