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Final Project 1
Computerized Accounting with Sage 50 Level 1
CAA4
Copyright © 2022
Project Code: CAA4 v6-0 Project 1
Released: January 12, 2022
Revised:
Computerized Accounting with Sage 50 Level 1
Chris’s Welding
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 2021
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
Comparative Balance Sheet
Income Statement
Supplier Aged Summary
Customer Aged Summary
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
60 marks
20 marks
10 marks
5 marks
5 marks
Page 2
PROJECT SPECIFICATIONS
The information provided in this test allows you to set up the General, Payables and Receivables ledgers for an
Ontario company named CHRIS’S WELDING owned and run by Chris George, a master welder. He performs
all kinds of welding jobs for individuals as well as companies. George has contracted you to set up his 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:
Chris’s Welding – (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:
33 Maple St.
Windsor, Ontario
N9S 4B6
Phone:
(519) 653-8383
Fax: (519) 653-7700
Fiscal start:
07-01-2024
Earliest transaction date:07-01-2024
Fiscal end:
12-31-2024
Select: Let me build the list of accounts myself after the company is created
Industry:
Service
Store company files in a new folder named WELDING and use WELDING as 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:
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 Change Session Date at startup
Turn on confirmation message Box
Business No: 342 121 190
Do not allow transactions dated before 07-01-2024
Do not allow transactions in future
Backup frequency: Weekly; turn off automatic backups
Company does not use notes, 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
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
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.
CHRIS’S WELDING
Chart of 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 WeldingTorches
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)
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
2800 LONG TERM LIABILITIES (H)
2850 Mortgage Payable
2890 TOTAL LONG TERM
LIABILITIES (T)
3000 EQUITY (H)
3560 Chris George, Capital
3600 Net Income (X)
3690 TOTAL OWNERS’ 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 Telephone Expense
5270 Payroll Service Fees
5280 Welding Supplies Used
5590 TOTAL EXPENSES (T)
Page 4
4. Add account balances from the following Trial Balance:
CHRIS’S WELDING
Post-Closing Trial Balance
July 1, 2024
1080 Bank: Chequing Account
1100 Bank: Credit Card
1200 Accounts Receivable
1290 Welding Supplies
1420 Welding Torches
1450 Computers
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 Chris George, Capital
$12 150
200
5 000
900
3 800
1 500
4 200
9 000
150 000
$ 6 000
1 600
1 100
950
750
________
$187 500
99 000
78 850
$187 500
Hint: Remember to use account 1050 Test Balance for out of balance amounts.
5. Change Account Classes:
Bank: Chequing Account: Change the account class to Bank and enter 201 as the next cheque number.
Bank: Credit Card: Change the account class to Credit Card Receivable.
Credit Card Payable: Change the account class to Credit Card Payable. Expense
Group accounts: Change the account class to Expense.
6. Set up credit cards as follows:
Credit Cards Accepted: Credit Card Name: Chargit
Currency CAD
Linked Asset Account 1100
Discount Fees: 3%
Linked Expense Account: 5030
Credit Cards Used:
Credit Card name: Chargit
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 13%, Not included, Refundable
Code – HI:
Tax HST, Taxable, Rate 13%, Included, Refundable
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
Page 5
Enter Ledger Settings:
Allow account classes to change.
General (Accounts):
Budgeting should be turned off
Retained Earnings 3560
Current Earnings 3600
Payables: Address
Windsor, Ontario, Canada
– Options
Aging periods: 30, 60 and 90 days
Calculate all discounts after tax for one time suppliers
– Linked Accounts
Principal Bank Account 1080
Accounts Payable 2200
Freight Expense and Early Payment Purchase Discount: leave blank
Prepayments and Prepaid Orders 2200
Receivables: Address Windsor, Ontario, Canada
-Options
Aging periods: 5, 15 and 30 days;
No interest charges on overdue accounts;
Include invoices paid in last 30 days;
Use tax code H as default for new customers
– Discounts
Terms: 2% discount in 5 days (after tax), net in 15 days
Line discounts not used
– Comment
On sales invoices: “Where fire meets steel.”
– Linked accounts:
Principal Bank Account 1080
Accounts Receivable 1200
Default Revenue 4020
Freight Revenue: leave blank
Early Payment Sales Discount 4200
Deposits and Prepaid Orders 1200
Online Payments Receivable: leave blank
Online Payment Fees: leave blank
Agree to the change in class to Retained Earnings for Capital
– Linked Accounts
8. Create the following supplier accounts.
Add the historical information provided.
Name (Contact), Address
Bell Canada
339 Jupiter Ave., Toronto, ON N4S 6T3
Web: www.bell.ca
Supplier since: 12/01/2005
Phone/Fax
Tel: (905) 310-5221
Terms, Tax, Account
Terms: net 10
Tax Code: HI
Expense Account:
5260 Telephone Expense
Receiver General for Canada (Margot Taxit)
Tel: (902) 821-8186
Summerside Tax Centre, Summerside PE C1N 6L2
Web: www.canada.ca/en/revenue-agency.html
Supplier since: 12/01/2005
Terms: net 1
Tax Code: No tax
(tax exempt – yes)
Welding Monthly (Leo Libra)
29 Taurus Lane, London, ON N4V 2V7
Tax ID: 493 421 289
E-mail: look.up@weld.com
Supplier since: 06/12/2006
Terms: net 20
Tax Code: H
Expense Account:
Tel: (226) 593-7191
Fax: (226) 593-1772
5020 Advertising
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
Page 6
Welds ‘r Us (Vulcan Sidekick)
Tel: (519) 592-6282
81 Aquarian Way, Chatham, On N3T 2C9
Fax: (519) 592-8164
Tax ID: 563 327 766
E-mail: weldall@welds.com Supplier since: 01/15/2008
Equipment
Historical Supplier Invoices and Payments
Name
Terms
Date
Bell Canada
net 10
Jun 28/22
Invoice/Chq
BC-55112
Welding Monthly
net 20
Jun 21/22
WM-611
Welds ‘r Us
net 30
Jun 12/22
Jun 19/22
Jun 28/22
WU-4229
Chq 195
WU-5110
Balance Owing
$1 100
–500
400
$1 000
Grand Total
$1 600
net 30
9.
Terms: net 30
Tax Code: H
Expense Account:
1480 Other Welding
Amount
$ 150
$450
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
Wacky Welding (Major Stickit)
45 Dunnit St., Wallaceburg, ON R1E 6T3
Phone/Fax
Tel: (519) 591-7722
Fax: (519) 591-9112
Revenue Account
4020 Revenue for Services
Noya Welding (Bill Ing)
110 Oxygen St., Windsor, ON N8T 9A1
E-mail: bing@interface.ca
Customer since: 09/16/2008
Tel: (519) 592-9001
Fax: (519) 592-9991
4020 Revenue for Services
Flamer’s Steel (Clare Flame)
10A Readers Den, Woodstock, ON N3H 7D3
Web site: www.flamers.com Customer
since: 11/06/2007
Tel: (519) 762-6712
4020 Revenue for Services
E-mail: the_major@wacky.com
Web site: www.wacky.com
Customer since: 01/01/2006
Historical Supplier Invoices and Payments
Name
Wacky Welding
Terms
2/5, n/15
Date
Invoice/Chq
Jun 22/22
109
Jun 23/22
Chq 212
Balance owing (Grand Total)
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
Amount
$ 5 500
–500
$5 000
Page 7
10.
Back up your files in your data folder with the name of Welding – your name – after history.
Continue with the working copy of your data files, WELDING.SAI.
Finish entering the history.
When you have finished entering the history, enter the transactions that follow.
11.
Change the session date to July 8, 2024. Create shortcuts or change modules and enter the
following transactions.
NOTE: Deposits and withdrawals, except credit card transactions, use Bank: Chequing Account.
Credit Card Purchase Invoice # WM-639
Dated July 2, 2024
From Welding Monthly, $460, plus $59.80 HST for print advertising. Purchase invoice total $519.80.
Charge to Advertising expense. Paid by Chargit.
Sales Invoice #121
Dated July 4, 2024
To Noya Welding, $900 plus $117 HST for welding beams for a wedding party. Invoice total, $1017.
Terms 2/5, net 15.
Payment Cheque #201
Dated July 5, 2024
To Bell Canada, $150 in full payment of account. Reference invoice #BC-55112.
Cash Receipt #297
Dated July 6, 2024
From Wacky Welding, cheque #239 for $1,600 in partial payment of account. Reference invoice #109.
Sales Invoice #122
Dated July 6, 2024
To Flamer’s Steel, for 5 hours of welding on steel girders, $500 plus $65 HST. Invoice total $565.
Terms 2/5, net 15.
Credit Card Sales Invoice #123
Dated July 7, 2024
Sales Summary: To One-time walk-in welding customers, $360 for various types of welding jobs, plus
$46.80 HST. Invoice total $406.80. The customers paid with Chargit credit cards.
Memo #1
Dated July 7, 2024
Welding supplies used during the past week amounted to $24. Adjust welding supplies account and
charge to Welding supplies used expense account. Store as weekly recurring entry.
Bank Memo # PB-77225
Dated July 8, 2024
From Paylo Bank, $1,600 for NSF cheque from Wacky Welding. Reference invoice #108 and cheque
#239. The company has been notified of the unpaid account.
Memo #2
Dated July 8, 2024
Adjust Sales Invoice #122 to Flamer’s Steel. Flamer’s Steel will be using our services on a weekly
basis so their rate will be reduced. The amount billed should be reduced to $400 plus $52 HST. Store
the sales invoice as a weekly recurring transaction.
Memo #3
Dated July 8, 2024
Chris’s welding tank exploded when a customer accidentally dropped it. Write off the welding tool
equipment recorded in account # 1480 valued at $750. Create new Group expense account 5100
Damaged Tools.
Bank Debit Memo #PB-77386
Dated July 8, 2024
From Payblo Bank, pre-authorized bi-weekly payroll for employees.
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
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Wages and payroll expenses
Payroll services fee
HST paid on payroll services
Total withdrawal
$6,000.00
80.00
10.40
$6,090.40
Create new Group expense account 5265 Wage and Payroll Expenses
Change the session date to July 15, 2024. Enter the following transactions:
Cash Receipt #298
Dated July 9, 2024
From Noya Welding, cheque # 431 for $996.66 in payment of account, including 2% discount for
prompt payment. Reference invoice #121.
Cheque Purchase Invoice #CP-2990
Dated July 10, 2024
From Crystal Products, Inc. (use Quick Add for new supplier), $900 plus $117 HST for one welding
tank to replace the destroyed tank. Invoice total $1 017 paid by cheque #202.
Purchase Invoice #WU-5331
Dated July 11, 2024
From Welds ‘r Us, $600 plus $78 HST, for one arc welding torch kit. Invoice total $678. Terms net 30.
Cash Receipt #299
Dated July 11, 2024
From Wacky Welding, certified cheque #WW-44239 for $1 600 to replace NSF cheque. Reference
invoice #109 and Bank Memo # PB-77225.
Sales Invoice #124
Dated July 13, 2024
To Wacky Welding, $900 for steel welding and consultations, plus $117 HST. Invoice total $1 017.
Change the customer’s terms to net 15 for this invoice and in the customer ledger.
Sales Invoice #125
Dated July 13, 2024
Recall stored entry for Flamer’s Steel, $400 plus $52 HST for 5 hours of arc welding. Invoice total
$452. Terms 2/5, net 15. (Accept message concerning the recalled entry)
Credit Card Sales Invoice #126 To
One-time customers,
150 minutes @ $1.00 each
HST Charged
Total amount paid by Chargit
Dated July 13, 2024
150.00 total
19.50
$169.50
Cash Sales Invoice #127
Dated July 14, 2024
Sales Summary: To One-time walk-in clients, $380 for various types of welding jobs, plus $49.40
HST. Invoice total $429.40. Paid by Cash.
Memo #5
Dated July 14, 2024
Welding supplies used in the past week amounted to $24. Adjust welding supplies account and charge
to welding supplies used expense account. Recall stored entry.
Bank Memo # PB-82771
Dated July 15, 2024
From Paylo Bank, $1 500 for regular monthly mortgage payment. This amount includes interest of
$1 200 and $300 in principal.
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
Page 9
13.
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 July 1 to July 15, 2024 Show corrections.
2. Comparative Balance Sheet (with percent difference) with First Period of July 15, 2024 and Second
Period of July 1, 2024
3. Income Statement from July 1 to July 15, 2024 (do not hide accounts with zero balance)
4. Supplier Aged Summary Report
5. Client Aged Summary Report
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1
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