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QuestionComputerized Accounting with Sage 50 Level 1 Chris’s Welding INTRODUCTIONThis 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 Journal Entries marks Comparative Balance Sheet marks Income Statement marks Supplier Aged Summary marks Customer Aged Summary marks 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 2019MARKING 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.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 into your instructor will be properly identified. Address: 33 Maple St. Windsor, Ontario N9S 4B6 Phone: (519) 653-8383 Fax: (519) 653-7700 Fiscal start:07-01-2022 Earliest transaction date:07-01-2022 Fiscal end:12-31-2022 Select: Let me build the list of accounts myself after the company is created Industry: Service Store company files in a new folder named CHRIS and use CHRIS 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 changing 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:342 121 190 Company System Settings Do not allow transactions dated before 07-01-2022 Do not allow transactions in future Company Backup Settings Backup frequency: Weekly; turn off automatic backups Company Features Settings The company does not use 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 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 Torches 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) 4.Add account balances from the following Trial Balance: CHRIS’S WELDING Post-Closing Trial Balance July 1, 2022 1080 Bank: Chequing Account $12 150 1100 Bank: Credit Card 200 1200 Accounts Receivable 5 000 1290 Welding Supplies 900 1420 Welding Torches 3 800 1450 Computer 1 500 1480 Other Welding Equipment 4 200 1500 Vehicle 9 000 1550 Shop 150 000 2100 Bank Loan $ 6 000 2200 Accounts Payable 1 600 2250 Credit Card Payable 1 100 2650 HST Charged on Services 950 2670 HST Paid on Purchases 750 2850 Mortgage Payable 99 000 3560 Chris George, Capital ________ 78 850 $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 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 Enter Ledger Settings: Allow account classes to change. General (Accounts): Budgeting should be turned off – Linked Accounts 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 8. Create the following supplier accounts. Add the historical information provided. Name (Contact), Address Phone/Fax Terms, Tax, Account Bell Canada Tel: (905) 310-5221 Terms: net 10 339 Jupiter Ave., Toronto, ONN4S 6T3 Tax Code: HI Web: www.bell.ca Expense Account: Supplier since: 12/01/2005 5260 Telephone Expense Receiver General for Canada (Margot Taxit) Tel: (902) 821-8186 Terms: net 1 Summerside Tax Centre, SummersidePEC1N 6L2 Tax Code: No tax Web: www.cra-arc.gc.ca Supplier since 12/01/2005 (tax-exempt – yes) Welding Monthly (Leo Libra) Tel: (226) 593-7191 Terms: net 20 29 Taurus Lane, London, ON N4V 2V7 Fax: (226) 593-1772 Tax Code: H Tax ID: 493 421 289 Expense Account: E-mail: [email protected] Supplier since: 06/12/2006 5020 Advertising Welds ‘r Us (Vulcan Sidekick) Tel: (519) 592-6282 Terms: net 30 81 Aquarian Way, Chatham, OnN3T 2C9 Fax: (519) 592-8164 Tax Code: H Tax ID: 563 327 766 Expense Account: E-mail: [email protected] Supplier since 01/15/2008 1480 Other Welding Equipment Historical Supplier Invoices and Payments Name Terms Date Invoice/Chq Amount Bell Canada net 10 Jun 28/22 BC-55112 $150 Welding Monthly net 20 Jun 21/22 WM-611 $450 Welds ‘r Us net 30 Jun 12/22 WU-4229 $1 100 Jun 19/22 Chq 195 -500 net 30 Jun 28/22 WU-5110 400 Balance Owing $1 000 Grand Total $1 600 9.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 Phone/Fax Revenue Account Wacky Welding (Major Stickit) Tel: (519) 591-7722 4020 Revenue for Services 45 Dunnit St., Wallaceburg, ONR1E 6T3 Fax: (519) 591-9112 E-mail: [email protected] Web site: www.wacky.com Customer since: 01/01/2006 Noya Welding (Bill Ing) Tel: (519) 592-9001 4020 Revenue for Services 110 Oxygen St., Windsor, ONN8T 9A1 E-mail: [email protected] Fax: (519) 592-9991 Customer since: 09/16/2008 Flamer’s Steel (Clare Flame) Tel: (519) 762-6712 4020 Revenue for Services 10A Readers Den, Woodstock, ONN3H 7D3 Web site: www.flamers.com Customer since: 11/06/2007 Historical Supplier Invoices and Payments Name Terms Date Invoice/Chq Amount Wacky Welding 2/5, n/15 Jun 22/22 108 $ 5 500 Jun 23/22 Chq 212 -500 Balance owing (Grand Total) $5 000 10.Change the View menu settings. Hide the unused modules:Payroll Inventory Project Turn off To-Do Lists and Checklists. 11.Back up your files in your data folder.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. 12.Change the session date to July 8, 2022. 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, 2022 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, 2022 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, 2022 To Bell Canada, $150 in full payment of account. Reference invoice #BC-55112. Cash Receipt #297 Dated July 6, 2022 From Wacky Welding, cheque #239 for $1,600 in partial payment of account. Reference invoice #108.Sales Invoice #122 Dated July 6, 2022 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, 2022 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, 2022 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, 2022 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, 2022 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, 2022 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, 2022 From Payblo Bank, pre-authorized bi-weekly payroll for employees. Wages and payroll expenses $6,000.00 Payroll services fee 80.00 HST paid on payroll services 10.40 Total withdrawal $6,090.40 Create new Group expense account 5265 Wage and Payroll ExpensesChange the session date to July 15, 2022. Enter the following transactions: Cash Receipt #298 Dated July 9, 2022 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, 2022 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, 2022 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, 2022 From Wacky Welding, certified cheque #WW-44239 for $1 600 to replace NSF cheque. Reference invoice #108 and Bank Memo # PB-77225. Sales Invoice #124 Dated July 13, 2022 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, 2022 To Flamer’s Steel, $400 plus $52 HST for 5 hours of arc welding. Invoice total $452. Terms 2/5, net 15. Recall stored entry. (Accept message) Credit Card Sales Invoice #126 To One-time customers, Dated July 13, 2022 150 minutes @ $1.00 each 150.00 total HST Charged 19.50 Total amount paid by Chargit $169.50 Cash Sales Invoice #127 Dated July 14, 2022 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, 2022 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, 2022 From Paylo Bank, $1 500 for regular monthly mortgage payment. This amount includes interest of$1 200 and $300 in principal.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, 2022 Show corrections. 2.Comparative Balance Sheet (with percent difference) at July 1, 2022 and July 15, 2022 3.Income Statement from July 1 to July 15, 2022 4.Supplier Aged Summary Report 5.Customer Aged Summary ReportBusinessAccountingACCOUNTING MISCShare Question