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Executive Office SimulationStudent WorkbookAccounting and PayrollWEEK TWOComponent Code:Release Date:EOS4 v1-0 Student Manual 2014-0826 September 2014Copyright ? 2013 CDI College of Business, Technology and Health CareAll rights reserved. Printed in Canada. No part of this publication may be reproduced without prior written permission from CDI College of Business, Technology and Health Care.A B CE x p l o r a t i o n sI n c .WEEK TWO OVERVIEWToday you start your Memo Report – the template is in the LMS. It is due on the last day of class.Now that you have completed Week One you know how important it is to read and follow instructions. If you follow the instructions carefully you will do well!This week you will be working with the Accountant of ABC Explorations Inc. You will report to the Administration Supervisor, Samuel Adder, his office is on the 6th floor.Your tasks have been broken down into daily assignments to assist you with your time management. Some examples of your duties will include creating a new set of books with Sage 50, working with excel workbooks; creating PowerPoint presentations, and various other Microsoft Office tasks as required.Day 1 – Sage 50Day 2 – Excel WorkbooksDay 3 – Excel TemplatesDay 4 – PowerPoint PresentationDay 5 – Final Exam, Memo ReportDAY 6 JOB 1(140 marks)On Monday morning when you arrive, you are directed to Mr. Adder’s office and after a brief welcome he informs you that you have been selected for special project for the next two days. He hands you a folder with all the information needed for this project.This is the information you have been given:After 20 years of service to ABC Explorations Inc., Rhea Ostrich is retiring from the Exploration Department. Part of her retirement package was that our accounting department would assist in the setting up of the accounting system for her new business venture. Birdz R Us, who specializes in the sale of large pet birds, is setting up business in Ontario. They will offer cages, high quality bird feed and provide some grooming services. The manager will provide some basic bird grooming services while the assistant manager will work mostly in store sales and caring for the animals that are for sale.Using Sage 50, create a new retail company from scratch named Birdz R Us. Use the file name Birdz, and store it in your Onedrive.Add the following company information:Fiscal start: 01-01-2013Fiscal end: 12-31-2013Earliest transaction date: 01-01-2013Province: OntarioCompany: Birdz R UsAddress: 1977 Beak Blvd.Sudbury, OntarioP3A 1C5Phone: (905) 662-8610Fax: (905) 662-2992Business No: 612 335 566Select “Let me build the list of accounts myself after the company is created”.Ensure to select that your company is part of the retail industry.Navigate to the Setup tab and select User Preferences from the dropdown menu5. Change default settings if necessary to include the following:TabPrimary MenuSecondary MenuSpecification/SettingSetupUser PreferencesOptions-Use accounting terms-Set the language to English-Check the box indicating Automatically save changes to recordsUser PreferencesView-Uncheck “Checklists” and “After Changing Session Date”-Hide/Uncheck Time and Billing.Under “Features”SetupSettingsCompany Dropdown, System--Ensure “Allow transactions in the future” is checked off.SetupSettingsCompany Dropdown, Features-Select all checkboxes, including “My Company Does Business In English and French” (Canadian Standard)SetupSettingsCompany Dropdown, Forms-Input the following:-Next Customer and Sales Invoice Number:8133-Next Sales Quote Number: 104-Next Receipts Number: 97-Next Customer Deposits Number: 17-Next Purchase Order Number: 21SetupSettingsGeneral Dropdown,Budget-Ensure “Budget Revenue and Expense Accounts” is NOT checked.SetupSettingsPayables Dropdown, Options-Select Aging Periods for 30, 60 and 90 days.-Ensure “Calculate all discounts before Tax” is NOT selectedSetupSettingsReceivables Dropdown, Options-Aging periods of 10, 30 and 45 days.-Ensure there is No interest charges on overdue accounts-Select “Include Invoices paid in last 30 days”SetupSettingsReceivables Dropdown,Discount-Input: 2% after tax discount in 10 days; net 30 days.SetupSettingsReceivables Dropdown, Comments-Ensure that “Thank You!” appears on all sales invoices, orders, and quotes.SetupSettingsPayroll Dropdown, IncomesEnsure all incomes are taxable, beginning at “Regular” income (not in the blue shaded area).SetupSettingsPayroll Dropdown, Deductions-Deduction 1=RRSP, deselect deduct after tax-Deduction 2=CSB, ensure that deduct after tax is selected-Delete other deduction names (#3-#20)SetupSettingsPayroll Dropdown, Taxes-EI Factor is 1.4-EHT Factor is 0.98SetupSettingsPayroll Dropdown, Entitlements-Insert 6% vacation (“6.00”), 15 day maximum-Ensure “Clear Days At Year End” is set to “No”SetupSettingsNames Dropdown, Incomes and Deductions-Delete incomes 3 to 20SetupInventory & Services Options dropdown-Select “Profit Evaluation By Markup”-Select “Sort Inventory & Services by: Description”-ensure that “Allow inventory levels to go below 0” is unchecked.Setup DivisionAllocation Dropdown-Select “By Percent” for both “Payroll” and “Other Transactions”-Check “Warn if Allocation Is Not Complete” box.3. Create accounts to match the following Chart of Accounts.Select the Setup tab, the Setup Guide, and select ACCOUNTS.Account types are shown in brackets beside the account.= Subgroup (S) = Subgroup total (H) = Heading (T) = Total (X) = Current Earnings All other accounts (unmarked) are Group accounts.-Select “Omit from financial statements if balance is zero”-Allow division allocations for all revenue and expense accounts.Birdz R UsChart of Accounts1000 CURRENT ASSETS (H)1040 Test Balance4000 REVENUES (H)1060Bank: CAD Chequing4020Revenue from Sales1080Bank: USD Chequing4040Revenue from Services1100Bank: Credit Card4100Sales Discounts1200Accounts Receivable4200Freight Revenue1220 Advances Receivable4390 TOTAL REVENUES (T)1240Purchase Prepayments1260 Food Supplies5000 EXPENSES (H)1300Other Supplies5010Bank & Credit Card Fees1390 TOTAL CURRENT ASSETS (T)5015 Exchange Rate Differences5020Cleaning & Maintenance1400 PROPERTY, PLANT & EQUIPMENT (H)5030 Adjustment Write-Off1420Computer/Cash Register5040Item Assembly Costs1440Vehicle5060Cost of Goods Sold1460Store Fixtures & Cages5070Cost of Services1590 TOTAL PROPERTY, PLANT &5100 Purchase DiscountsEQUIPMENT (T)5200 Freight Expense5220Bird Food Used1600 INVENTORY (H)5240 Rent Expense1620Birds5260Interest Expense1640Bird Food5280Utilities Expense1660Bird Cages5300 Veterinary Consultation1690 TOTAL INVENTORY (T)5400 Wages Expense5410 CPP Expense2000 CURRENT LIABILITIES (H)5420 EI Expense2100 Bank Loan5430 WSIB Expense2150Credit Card Payable5460EHT Expense2200 Accounts Payable5490 TOTAL EXPENSES (T)2220Prepaid Sales & Deposits2300Vacation Pay Payable2320CPP Payable (A)2330EI Payable (A)2340Income Tax Payable (A)2360Receiver General Payable (S)2380 EHT Payable2400 RRSP Payable2420CSB Plan Payable2440 WSIB Payable2620PST Payable2630PST Charged on Purchases2640GST Charged on Sales (A)2660GST Paid on Purchases (A)2750GST Owing (Refund) (S)2790 TOTAL CURRENT LIABILITIES (T)3000 OWNER’S EQUITY (H)3560R. Ostrich, Capital3600Net Income (X)3690 TOTAL OWNER’S EQUITY (T)4. Add account balances from the following Trial Balance:Birdz R UsPost-Closing Trial BalanceApril 1, 20131060 Bank: CAD Chequing$67 6401080 Bank: USD Chequing2 860(CAD)1100Bank: Credit Card3 2001200Accounts Receivable1 5001260Food Supplies8401300Other Supplies7001420Computer/Cash Register6 3501440 Vehicle13 0001460Store Fixtures & Cages3 5001620Birds4 8001640Bird Food3 2801660Bird Cages6 1202100 Bank Loan$ 13 0002150Credit Card Payable4 0002200Accounts Payable3 8002640GST Charged on Sales7652660GST Paid on Purchases-4803560R. Ostrich, Capital92 705$114 270$114 2705. Add Foreign Currency.-Select the Setup tab, Settings, Company dropdown, and Currency-Check off “I want to enter transactions using foreign currency”-Add USD as a foreign currency.-Use account 5015 to track exchange rate and rounding differences.-Select “Exchange Rate”-Enter 1.03 as the exchange rate for April 1, 2013.-Display the reminder if the rate is one day old.6. Edit the Bank Accounts-Select the setup tab, setup guide, and click the ACCOUNTS option.EDIT the CAD Chequing Account: Change the account class to Bank and click “Change the next Cheque number, and change it to 1275.EDIT the USD Chequing Account: Change the account class to Bank and enter 1023 as the next cheque number. Change the currency to USD and add $1 795 as the USD balance.EDIT the Bank Credit Card Account: Change the account class to Credit Card ReceivableEDIT the Credit Card Payable (2150): Change the account class to Credit Card Payable7. Enter Sales Tax and Tax Codes.-Click Setup tab, Settings option, Company dropdown, Sales Taxes, “Taxes” optionTax – GST: Not Exempt, Not Taxable, Use 2660 to track tax paid on purchases, Use 2640 to track taxes charged on sales. Report on taxesTax – PST: Not Exempt, Not Taxable, Use 2620 to track tax charged on sales, and 2630 to track PST Paid on Purchases. Report on taxes.Tax Codes SectionCode – G: Tax GST, Taxable, Rate 5% (enter in as 5.00), Not included, RefundableCode – GP: Tax GST, Taxable, Rate 5% (enter in as 5.00), Not included, refundable.-Tax PST, Taxable, Rate 8% (enter in as 8.00), Not included, Not refundable.Enter the linked accounts: Allow account classes to change!.TabSelectionDropdown MenuLink to the FollowingSetupSettings“General” dropdown, Linked Accounts-Retained Earnings to 3560, “R. Ostrich, Capital”“Payables” dropdown, Linked Accounts-Principal Bank Account for CAD 1060-Principal Bank Account for USD 1080-Accounts Payable 2200-Freight Expense 5200-Purchase Discount 5100-Prepayments and Prepaid Orders 1240-“Receivables” dropdown, Linked Accounts-Principal Bank Account for CAD 1060-Principal Bank Account for USD 1080-Accounts Receivable 1200-Freight Revenue 4200-Sales Discount 4100-Deposits and Prepaid Orders 2220“Payroll” dropdown, Linked Accounts, Income section.-Principle Bank 1060-Vacation Owed: Vacation Pay Payable 2300-Advances and loans to 1220-Wages (All Wages expenses, including vacation earned) 5400“Payroll” dropdown, Linked Accounts, deductions section-RRSP Payable 2400-CSB Payable 2420“Payroll” dropdown, Linked Accounts, Taxes section-PAYABLES-EI-link to EI Payable 2330-CPP-link to CPP Payable 2320-Tax-link to 2340 Income Tax Payable 2340-WCB-link to WISB Payable 2440-EHT to 2380 EHT Payable“Payroll” dropdown, Linked Accounts, Taxes section-EXPENSES -EI- Link to EI Expense, 5420-CPP-Link to CPP Expense, 5410-WCB-Link to WSIB Expense 5430-EHT- Link to EHT Expense-5460“Payroll” dropdown, Linked Accounts, Taxes section-PAYMENT ADJUSTMENTS-EI-Link to EI Expense, 5420-CPP- Link to CPP Expesne, 5410-Tax-Link to Test balance, 1040-WCB-link to WSIB Expense, 5430-EHT to 5460 EHT Expense.“Inventory and Services” dropdown, Linked Accounts-Item assembly costs 5040-Adjustment write-off,5030Create the following supplier accounts with historical information:(Go to the Setup tab, Setup Guide, and click “Suppliers”)Name (Contact), AddressPhone/FaxTerms, Tax, AccountReceiver General of Canada (Margo Taxit)Tel: (902) 821-8186net paid in 1 day, Summerside Tax CentreSummerside PEI, C1N 6L2Web site: ra-adrc.gc.caSammy’s Seed (Larry Limpkin)Tel: (716) 492-6282-Terms: 2%/15 days, net/30 days (after tax)33 Cockatoo Cres., Buffalo, New York,Fax: (716) 492-8164-Tax Code: GUSA 14307Web site: birds-ensure transactions are set to USDWaterton Sanctuary (Leo Rooster)Tel: (905) 774-7109Terms: 1/10, n/30 (after tax)440 Fowl Circle, Waterton, ON L6T 7F3Fax: (905) 774-7799Tax Code: GTax ID: 672 213 992 (in address section)E-mail: rooster@Fox Veterinarian Services (Warren Fox)Tel: (905) 526-7191Terms: 2/5, n/15 (after tax)33 Woodpecker Lane, Sudbury, ON P5R 2V7Tax Code: GTax ID: 887 210 092(in address section)Expense Account: 5300E-mail: wfox@Historical Supplier Invoices and PaymentsBE CAREFUL!!!NameTermsDateInvoice/ChqAmountSammy’s Seed2/15, n/30 after taxJan 1/13SS-401(Inv.)$195 USD(300 CAD)Waterton Sanctuary1/10, n/30 (after tax)Jan 1/13WS-6621(Inv.)$5 500Jan 1/131200150145415Chq 1273 (Pay.)-3 000 Jan 1/13Use $55.00 discountWS-6808(Inv.)1 000Balance owing$3 44510. Create the following customer accounts with historical information:The credit limit for all customers is $5 000 (Statistics tab). The terms for all customers are 2/10, n/30 after tax. The tax code for all customers is GP. If information is not provided, leave fields blank.Name (Contact), AddressPhone/FaxEddie EagleTel: (905) 762-671244 Heron Blvd., Hamilton, ON L1P 7D3E-mail: Eddie@Beautiful Birds (Paul Pelican)Tel: (905) 592-9001***Preferred Customer-Don’t FORGETFax: (905) 592-99912220 Flamingo St., Sudbury, ON P2C 9A1Web site: Input the following Historical Customer Invoices and Payments-BE CAREFUL-you cannot undo!NameTermsDateInvoice/ChqAmountEddie Eagle2/10, n/30Jan 1/131104inv$2 500Jan 1/13Chq 3pmnt-1 000Balance owing$1 500*Do not use Eddie’s Discount here11. Enter the following employee information: Use the default wage expense account.NameKathy ToucanBarry BudgiePersonalAddress345 Albatross Cres.29 Penguin Dr.Sudbury, Ont.Sudbury, Ont.P4E 4C9P6F 2D4Phone(905) 459-7122(905) 388-8127SIN#468 321 765532 719 721Birth DateJan. 30, 1971June 6, 1976Date of HireJan. 1, 2012March 31, 2013TaxesTax TableOntarioOntarioFederal Claim bsc. Personal$14 116$12 794Provincial Claim bsc. Personal$14 212$12 918WSIB (WCB) Rate-WCB tab3.54%3.54%EI Factor1.41.4IncomeSalary/Wage$2 375 Semi-monthly$21.00/hr. Regular$31.50/hr. OvertimeHours per period8035Pay Periods per Year2452Vacation3 weeks (0%)4% retained (in Entitlements section)DeductionsRRSP Deductions per Pay$150.00$75.00CSB Deductions per Pay$100.00$50.00Historical IncomeSalary$14 250.00EI Insurable Earnings/Pensionable Earnings$14 250.00**T4 Reporting TabHistorical DeductionsRRSP Contributions$900.00CSB Contributions$600.00Historical TaxesIncome Tax$2 926.44EI Contributions$310.20CPP Contributions$773.46Vacation Days7 Days12. Create the following inventory accounts:76200317500-Navigate to “Inventory & Services” on the navigation pane.-Add the following inventory.-Allow account classes to change.-There is no year-to-date information (No Statistics).-Variance accounts will not be required. Leave the variance account field blank.-Taxes: GST and PST are charged on inventory items. Services are PST exempt.-Web Price is the same as Regular price, all prices in CAD.PriceAccountsItem DescriptionNo.UnitMinRegPrefOpening QtyOpening ValueAssetRevCOGSInventory ItemsAmazons101Each0$1500$14004$1800162040205060Cockatoos102Each0$1350$12504$1400162040205060Macaws103Each0$1200$11004$1600162040205060Premium Bird Seed -2012 kg10$15$12130$910164040205060SmallPremium Bird Seed -2025 kg20$25$2285$1105164040205060LargeHigh Performance Blend2032 kg10$22$19115$1265164040205060Aluminum Cage301Each2$200$18018$2160166040205060Steel Cage302Each2$300$27022$3960166040205060Services * PST EXEMPTBeak Trimming401Each$75$68130040405070Feather Preening402Each$100$90130040405070Cage Assembly403Each$50$45130040405070Bathing and Spraying404Each$45$40130040405070** Ensure “Services” are indicated as services, or you will be requested to enter a n “Opening Value”, and “Asset” account.Create two divisions starting April 1, 201313335050800Click the divisions option on the Navigation Pane.Insert the following divisions:Sales Service There are no balances forward.Set up credit cards and enter form settings as follows: (Click on the Setup tab, settings, company dropdown, select “Credit Cards”) Credit Card SettingsCards Accepted:Cards Used:Credit Card Name: PayLaterDiscount Fee: 3.5%Linked Expense Account: 5010Linked Asset Account: 1100Credit Card Name: PayLaterLinked Payable Account: 2150Linked Expense Account: 5010Navigate to the Reports tab-“Lists”-Chart of Accounts-Current Year-Click “OK”.PRINT the Chart of Accounts as an Excel file named “Chart of Accounts” Navigate to the Reports tab- “Financials” –“Trial Balance”PRINT the Trial Balance as an Excel file named Trial BalanceNavigate to the Reports tab-“My Reports”-“Supplier Aged Report”PRINT the Supplier Aged Detail Report, including terms, as an Excel file named Supplier Aged Navigate to the Reports tab-“My Reports”-“Customer Aged Report”PRINT the Customer Aged Detail Report, including terms, as an Excel file named Customer Aged Navigate to the Reports tab-Reports Centre-Employee SummaryPRINT the Employee Summary Report for both employees as an Excel file named Employee Summary Navigate to the Reports tab-Reports Centre-Inventory and Services, Summary selectionPRINT the Inventory Summary Report as an Excel file named InventorySAVE ALL DOCUMENTS TO THE FOLDER NAMED BIRDZ WHEN ALL 6 DOCUMENTS ARE COMPLETE SUBMIT TO YOUR INSTRUCTOR ................
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