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 (CAA4)
Final Project 1 Page 2
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
egarding 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 e
or, a further 0.5 mark deduction will be made.
Journal Entries 60 marks
Comparative Balance Sheet 20 marks
Income Statement 10 marks
Supplier Aged Summary 5 marks
Customer Aged Summary 5 marks
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1 Page 3
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: XXXXXXXXXXFax: XXXXXXXXXX
Fiscal start: XXXXXXXXXX
Earliest transaction date: XXXXXXXXXX
Fiscal end: XXXXXXXXXX
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 Use Accounting Terms
Automatically save changes to Suppliers, Clients and Other Records
Show list buttons
User Preferences View Turn off Checklists and Daily Business Manager at startup and after
XXXXXXXXXXchanging session date
Turn off Employee & Payroll, Inventory & Services, Project and
Time & Billing
Turn on Change Session Date at startup
User Preferences Transaction Turn on confirmation message Box
Company Information Settings Business No: XXXXXXXXXX
Company System Settings Do not allow transactions dated before XXXXXXXXXX
Do not allow transactions in future
Company Backup Settings Backup frequency: Weekly; turn off automatic backups
Company Features Settings Company does not use notes, quotes, orders, packing slips and
project
Company does business in French and English
Company Forms Settings Next Client & Sales Invoice number: 121
Next Receipts number: 297
Company Date Format Settings 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 4
3. Create accounts to match the following Chart of Accounts.
Edit the cu
ent earnings account.
Account types are shown in
ackets beside the account.
(A) = Subgroup (S) = Subgroup total (H) = Heading (T) = Total (X) = Cu
ent 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)
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)
Computerized Accounting with Sage 50 Level 1 (CAA4)
Final Project 1 Page 5
4. Add account balances from the following Trial Balance:
CHRIS’S WELDING
Post-Closing Trial Balance
July 1, 2024
1080 Bank: Chequing Account $12 150
1100 Bank: Credit Card 200
1200 Accounts Receivable XXXXXXXXXX
1290 Welding Supplies 900
1420 Welding Torches 3 800
1450 Computers 1 500
1480 Other Welding Equipment 4 200
1500 Vehicle 9 000
1550 Shop XXXXXXXXXX
2100 Bank Loan $ 6 000
2200 Accounts Payable XXXXXXXXXX
2250 Credit Card Payable XXXXXXXXXX
2650 HST Charged on Services XXXXXXXXXX
2670 HST Paid on Purchases 750
2850 Mortgage Payable XXXXXXXXXX
3560 Chris George, Capital ________ XXXXXXXXXX
$187 500 $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
XXXXXXXXXXCu
ency CAD
XXXXXXXXXXLinked 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 6
Enter Ledger Settings: Allow account classes to change.
General (Accounts): Budgeting should be turned off
- Linked Accounts Retained Earnings 3560
Cu
ent 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