The information provided in this test allows you to set up the General, Payables and Receivables ledgers for an Ontario company named GWENS WELDING owned and run by Gwen Swift, a master machinist. She performs all kinds of Welding jobs for individuals as well as companies. Gwen has contracted you to set up her company to use Sage 50 Accounting for general ledger, accounts receivable and accounts payable.

DO EACH OF THE FOLLOWING TASKS IN ORDER.

1. Using Sage 50 Accounting, create a new company file using the following information:

Company Name: Address:

Phone:

Fiscal start:

Earliest transaction date:

Fiscal end:

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

Industry: Service

Store company files in a new folder named GWEN and use GWEN for the file name. Select: I will update my tax information myself

2. Working from the Company module window, change default settings if necessary to include the following:

3.

User Preferences Options User Preferences View

User Preferences Transaction Company Information Settings Company System Settings

Company Backup 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 Employee & Payroll, Inventory & Services, Project and Time & Billing

Turn on Show Change Session Date at startup

Turn on confirmation message Box

Business No: 342 121 190

Do not allow transactions dated before 07-01-2019

Do not allow transactions in future

Backup frequency: Weekly; turn off automatic backups

Company does not use quotes, orders, packing slips and project Company does business in French and English

Next Client & Sales Invoice number: 121

Next Receipts number: 297

Month, day, year. Use long date format on the screen and in reports

GWENS WELDING 24 Orange St. Guelph, Ontario

N6R 4L5

(519) 864-8373 07-01-2025 07-01-2025 12-31-2025

Fax: (519) 864-8283

Page 1 of 8

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.

1000 CURRENT ASSETS (H)

1050 Test Balance

1080 Bank: Chequing Account

1100 Bank: Credit Card

1200 Accounts Receivable

1290 Welding Supplies

1390 TOTAL CURRENT ASSETS (T)

1400 CAPITAL ASSETS (H)

1420 Welding Tools 1450 Computers

1480 Other Welding Equipment

1500 Vehicle

1550 Shop

1590 TOTAL CAPITAL ASSETS (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 EQUITY (H)

3560 Gwen Swift, Capital 3600 Net Income (X)

3690 TOTAL EQUITY (T)

4000 REVENUE (H)

4020 Revenue from Services 4100 Sales Allowances

4200 Sales Discounts

4390 TOTAL REVENUE (T)

5000 EXPENSES (H)

5020 Advertising

5030 Bank and Credit Card Fees 5040 Cleaning and Maintenance 5060 Hydro Expense

5220 Insurance Expense

5240 Interest Expense

5260 Internet Expense

5270 Payroll Service Fees

5280 Welding Supplies Used 5590 TOTAL EXPENSES (T)

Print the Chart of Accounts.

GWENS WELDING Chart of Accounts

Page 2 of 8

4. Add account balances from the following Trial Balance:

1080 Bank: Chequing Account 1100 Bank: Credit Card

1200 Accounts Receivable 1260 Welding Supplies

1420 Welding Tools

1450 Computer

1480 Other Welding Equipment 1500 Vehicle

1550 Shop

2100 Bank Loan

2200 Accounts Payable

2250 Credit Card Payable

2650 HST Charged on Services 2670 HST Paid on Purchases 2850 Mortgage Payable

3560 Gwen Swift, Capital

GWENS WELDING Post-Closing Trial Balance July 1, 2019

$12 150 200 5 000 900 3 800 1 500 4 200 9 000 150 000

750

________ $187 500

Hint: Remember to use account 1050 Test Balance Print the Trial Balance.

5. Create the following supplier accounts. Add the historical information provided.

$6 000 1 600 1 100 950

99 000

78 850 $187 500

for out of balance amounts.

Note: Due to software update TAX ID requires valid CRA #. For this course the TAX ID

used is the generic one found in the textbook. Each number

Name (Contact), Address

MTS Canada

42 Mars Ave., Toronto, ON N4S 6T4 Tax ID:533 766 457 RT0001

Web: www.mts.ca

Supplier since: 12/01/2012

Receiver General for Canada (Bill Helpful) Summerside Tax Centre, Summerside PE C1N 6L2 Web: www.cra-arc.gc.ca

Supplier since: 12/01/2012

Welding Monthly (Jane Fun)

29 Poseidon Lane, Guelph, ON N6R 7V2 Tax ID: 533 766 457 RT0001

business would however have its own account

Phone/Fax

Tel: (905) 310-2215

Tel: (902) 821-8681

Tel: (684) 593-7911 Fax: (684) 593-7912

Terms, Tax, Account Terms: net 10

Tax Code: HI Expense Account:

5260 Internet Expense

Terms: net 1

Tax Code: No tax

(tax exempt yes)

Terms: net 20 Tax Code: H Expense Account:

Page 3 of 8

E-mail: stand.up@welding.com Supplier since: 06/12/2012

Weldingr Us (Brenda Hope)

81 Creek Road, Guelph, ON N6R 2C9 Tax ID: 533 766 457 RT0001

E-mail: welding@welding.com Account:1480 Other Welding Equipment Supplier since: 01/15/2010

Historical Supplier Invoices and Payments

Tel: (684) 592-8262 Fax: (684) 592-8416

5020 Advertising

Terms: net 30 Tax Code: H

Name

MTS Canada Welding Monthly Weldingr Us

Terms

net 10 net 20 net 30 net 30

Date

Jun 28/19 Jun 21/19

Jun 13/19 Jun 17/19 Jun 28/19

Invoice/Chq Amount

MTS-55112 $ 150 WM-611 $450

WU-4229 $1 100 Chq 195 500 WU-5110 400 Balance Owing $1 000

Grand Total $1 600

Print the Supplier Aged Detail Report for all suppliers. Include terms. 6. Create the following customer accounts with historical information.

The credit limit for all customers is $5 000. The terms for all customers are 2/5, n/15. The tax code for all customers is H. If information is not provided, leave fields blank.

Name (Contact), Address

Smith Gears (Zoe Smith)

Services

45 Bowes St., Ottawa, ON R1E 5S3 E-mail: zoe@gears.com

Web site: www.smith.com Customer since: 01/01/2012

FIX IT (Bill Harp)

Services

110 Oxygen St., Guelph, ON N6R 9A1 E-mail: harp@metals.ca

Customer since: 09/16/2011

Flexible Metal (Philip Ham) Services

Phone/Fax

Tel: (519) 591-2277 Fax: (519) 591-2119

Tel: (684) 592-1009 Fax: (684) 592-1991

Tel: (684) 726-2176

Revenue Account

4020 Revenue from

4020 Revenue from

4020 Revenue from

Page 4 of 8

10A Bookers, Guelph, ON N6R 7D3 Web site: www.Flexible .com Customer since: 11/06/2012

Historical Supplier Invoices and Payments Name Terms Date

Smith Gears 2/5, n/15 Jun 22/19 Jun 23/19

Invoice/Chq

108

Chq 212

Amount

$ 5 500 500 $5 000

Balance owing (Grand Total)

Print the Customer Aged Detail Report for all customers. Include terms. 7. Print the following reports:

Journal Entries for all journals from July 1 to July 15, 2025

Show corrections.

Comparative Balance Sheet (with percent difference) at July 1, 2025 and July 15, 2025 Income Statement from July 1 to July 15, 2019