Computerized Accounting with Sage 50 Level 2 Dermal Décor INTRODUCTION This project will test your understanding of the Sage 50 Accounting application and your ability to apply the features of this application

Question

Computerized Accounting with Sage 50 Level 2

Dermal Décor

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, Receivable, Payroll, and Inventory ledgers for a small company
Record transactions
Print reports

TIME REQUIRED

You will require 10 hours to complete this project.

MATERIALS REQUIRED

To complete this project, you will require:

Windows 10
Sage 50 Accounting 2019

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 60 marks

Balance Sheet 20 marks

Income Statement 10 marks

Employee Summary Report 5 marks

Inventory Summary Report 5 marks

PROJECT SPECIFICATIONS

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, create 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: 04-01-2022

Earliest transaction date: 04-01-2022

Fiscal end: 06-30-2022

Select: Create 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.

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 0401-2018

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

Create 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, 2022

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
1420 Tattoo Designs	10 800
1440 Ink	1 030
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
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

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, 2022. Display the reminder if the rate is one day old.

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 $1 505 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.

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

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

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

Web site: www.fullspectrum.com Currency: USD

Supplier since 02/01/2015

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

E-mail: inspector@medispecs.com Supplier since 03/01/2016

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 Supplier since 01/01/2013

E-mail: art@skindecals.com

Historical Supplier Invoices and Payments

Name Terms Date Invoice/Chq Amount

Full Spectrum 2/15, n/30 after tax Mar 15/22 FS-3903 $970 USD

(990 CAD)

Skin Decals, Inc. 2/5, n/15 (after tax) Mar 25/22 SD-621 $3 800

Mar 27/22 Chq 398 –1 800

Mar 30/22 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 Client since 11/01/2017 E-mail: b.hart@gmail.com

Stan Stoner Tel: (416) 592-9001

110 Abbey Rd., Toronto, ON M8C 9A1

E-mail: s.stoner@yahoo.com Client since 12/01/2017

Historical Customer Invoices and Payments

Name Terms Date Invoice/Chq Amount

Stan Stoner 1/15, n/30 Mar 28/22 3104 $4 300

Mar 28/22 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, 1984	Dec. 23, 1980
Date of Hire Feb. 1, 2007 Taxes	Mar. 23, 2022
Tax Table Ontario	Ontario
Federal Claim $11,327	$11,327
Provincial Claim $9,863	$9,863
Federal Index amount $9,500	$5,600
Provincial Index amount $7,950 (Entire claim amounts are subject to indexing)	$3,450
Additional Federal Tax	$100
Deduct EI & CPP (EI Factor) Yes, Yes (1.4) Historical Income Tax $1 202 Historical EI Contributions $167 Historical CPP Contributions $474 Income Advances Historical Amount $150	Yes, Yes (1.4)
Benefits (medical plan) $10 Benefits Historical Amount $130	$20
Vacation 6% retained Vacation Owed $360.00	3 weeks (0%)
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 Overtime Wage Historical Amount $702	(do not use)
Commission (do not use)	1% of revenue
No. Clients $5 No. Clients Historical Amount $780	(do not use)
Tuition $50 Tuition historical amount $650	(do not use)
Pay Periods per Year 52 Deductions	24
CSB Deductions per Pay $50.00 CSB Historical Contributions $650.00 WSIB and Other Expenses	$50.00
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 0

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

Set up a payroll authority.

Create 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, 2022.

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.

Create 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

Create two divisions starting April 1, 2022.

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

Back up your work.

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

Change the session date to April 8, 2022 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, 2022

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 Shipping Date April 11, 2022 From Skin Decals, Inc.	Dated April 3, 2022
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 Terms: 1/10, net 30. Edit the default prices and terms.	$1 299.50
Cash Receipt #356	Dated April 4, 2022

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, 2022

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, 2022

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, 2022

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, 2022

To Full Spectrum, $970 USD in full payment of invoice #FS-3904. The exchange rate is 0.990. Paid from Bank: USD Chequing Account.

Sales Quote #32 Dated April 6, 2022

Delivery Date April 15, 2022

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, 2022

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, 2022

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, 2022

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

Deposit Slip #607 Dated April 7, 2022

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

Sales Invoice #3111 Dated April 8, 2022

To One-time 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 by cheque #354

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

Edit the default prices.

Memo #2 Dated April 8, 2022

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, 2022. Enter the following transactions:

Purchase Invoice #SD-986 Dated April 11, 2022 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, 2022

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, 2022

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, 2022

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, 2022

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, 2022

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, 2022

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.

Edit the default prices.

Purchase Order #56 Dated April 15, 2022

Delivery Date: April 28, 2022

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, 2022

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, 2022

Deposit three cheques received in the past weeks totaling $3,920.98. Total deposit amount was $3 920.98.

Memo #4 Dated April 15, 2022

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, 2022

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. Note: Record hours worked per pay period.

Memo #6 Dated April 15, 2022

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 1.02.

Bank Debit Memo #RCU-4433 Dated April 15, 2022

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, 2022

Make payroll tax remittance to the Receiver General for the pay periods ending April 15, 2022.

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 #68 468.32
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 2 040.00
Apr. 15	Payroll transfer Ref #69- 472.01
Apr. 15	Payroll transfer Ref #70- 1626.99
Apr. 15	Service fee 45.00
Apr. 15	Closing Balance	23 917.86

21.

Computerized Accounting with Sage 50 Level 2 (CAB4)

Final Project 1 Page 15

Print and assemble the following reports in the order indicated and hand in to your instructor:

Note: Make sure your name appears as part of the company name at the top of each report.

Journal Entries for all journals from April 1 to April 15, 2022 – Show division allocations, foreign currency amounts, corrections and additional information.
Balance Sheet at April 15, 2022
Income Statement from April 1 to April 15, 2022
Employee Summary
Inventory Summary

Computerized Accounting with Sage 50 Level 2 (CAB4)

Final Project 11