SOUTH-WESTERN CENTURY 21 ACCOUNTING
with Sage 50 2015
This manual explains how to use Sage 50 software with Century 21 Accounting Advanced, 10E. You will complete selected end-of-chapter problems with Sage 50 2015 software.
CONVENTIONS USED
As you work through the problems and activities, you will be expected to read and follow the step-by-step instructions. Numerous screen illustrations allow you to check your work.
The following conventions are used:
1. Information that you are to type is set in bold.
Examples: 1-MPXX
Cash
1-M Mastery Problem
2. Keys on the keyboard that should be pressed appear as shown below.
Example: <Enter>
3. Sequential menu selections are separated by >.
Example: Start>All Programs>Sage 50 Accounting 2015
4. Names of buttons appear in bold.
5. Unnamed buttons and picture icons are shown as they actually appear on the screen.
Examples:
1-3 Application Problem
Journalizing and Posting Departmental Cash Payments
The instructions that follow demonstrate how to:
Ø Start Sage 50 2015.
Ø Restore the starting data.
Ø Journalize and post Cash Disbursements Journal transactions.
Ø Complete 1-3 Application Problem.
Before starting 1-3 Application Problem, ask the instructor if Step Music, the company used for 1-3 Application Problem, has already been restored. If Step Music exists as a Sage 50 company, remember to restore An Existing Company rather than a new company.
GETTING STARTED
Restore the 01-3 AP.ptb file. Each time you begin a problem, restore the starting data from a Sage 50 file. Then, make the appropriate selections to display the Company Information window to include your initials in the company name.
Step Music is a corporation that has two departments: Guitars and Keyboards. Change the company name from Step Music to 01-3 AP (X’s represent your initials).
Nothing has changed on your computer’s hard drive. In Windows 7, this company is identified in the program folder and data folder as C:\Sage\Peachtree\Company\stemusic. The company name has been changed so that Sage 50 printouts will show the problem number and your initials. Using Maintain; Company Information to rename the company does not change the shortened company name.
CHANGING THE COMPANY NAME
Before recording transactions for 1-3 Application Problem, look at the company information included on the 01-3 AP.ptb file. Follow these steps to look at company information.
1. The Step Music menu bar should be displayed. From the menu bar, click on Maintain; Company Information. The Maintain Company Information window appears. Compare your Maintain Company Information window to the one shown on the next page.
Observe that the Company Name field shows Step Music. The Form of Business field shows Corporation. In Windows 7, the Directory field shows the location on the hard drive where the company data is stored – C:\Sage\Peachtree\Company \stemusic. When a company is created in Sage 50, the company name is shortened. The shortened company name is added to Peachtree’s Program and data path. If you are working in a computer lab, Sage 50’s location may differ.
2. In order to make sure that each printout displays your name and the problem number, in the Company Name field, type 01-3 APXX. Replace the X’s with your initials.
Read MeWhy do I have to change the company name?
You change the company name so that printouts will show the problem number and your initials. (The instructor may require different directions.) After the company name is changed, when Sage 50 is started at a later time, the company will appear with its new name.
DISPLAYING THE CHART OF ACCOUNTS
The 01-3 AP.ptb file contains starting data for 1-3 Application Problem. This file includes a chart of accounts for Step Music. Follow these steps to display the chart of accounts that is included in the starting data for 1-3 Application Problem.
- From the menu bar, select Reports & Forms, then General Ledger.
- The Select a Report or Form window appears. In the General Ledger Account Information list, click on Chart of Accounts.
- Click .
- The Chart of Accounts window appears. Compare your chart of accounts to the one shown.
JOURNALIZING TRANSACTIONS
From the textbook, use the March transactions to journalize and post to the cash disbursements journal. (In Sage 50, the cash payments journal is called the cash disbursements journal.) The instructions that follow explain the steps for journalizing and posting to the Cash Disbursements Journal. For purposes of entering transactions, use 2013 as the year.
Cash Disbursements Journal: Paying Cash for Expenses
Use these steps to journalize and post the March 2 transaction.
Date Transaction
Mar. 2 Paid cash to Z96 Radio, Inc., for advertising announcing a guitar sale, $350.00. C642.
Each time you pay a vendor in Sage 50, you use the cash disbursements journal (this is referred to as the cash payments journal in the textbook). This is done by selecting Tasks, then Payments from the menu bar or through the navigation bar. The following instructions demonstrate how to access the Payments window from the navigation bar.
1. From the navigation bar, select and click on the icon. Then, choose the Pay Bill.
2. The Select a Cash Account window appears.
3. Make sure Cash is selected; then click . The Payments window appears.
4. In the Name field, type Z96 Radio.
5. Type C642 as the Check/Reference No. field..
6. Type or select 2 in the Date field.
7. In the Description field type Advertising Expense -- Guitars.
8. In the GL Account field select 6105 – Advertising Expense–Guitars.
9. In the Amount field type 350.00.
10. Post (Save) this payment, and then close the Payments window.
Cash Disbursements Journal: Making a Vendor Payment
Use these steps to journalize and post the March 5 transaction.
Date Transaction
Mar. 5 Paid cash on account to Airways Music covering P584 for a keyboard, $1980.60, less 2% discount. C643.
1. From the Navigation bar, select and click on the icon. Then, choose Pay Bill.
2. The Payments window appears. Make sure Account No. 1105 - Cash is selected in the Cash account field.
3. In the Vendor ID field, select 210 – Airways Music.
4. Type C643 as the Check/Reference No. field.
5. Type or select 5 in the Date field. Notice that the Apply to Invoices tab is selected and that Invoice No. P584 is shown.
6. Type 39.61 in the Discount column.
Read MeSince the March 5, 2013 transaction is payment for Airways Music’s invoice from February 26, 2013, you need to type the 2% discount of $39.61 ($1,980.60 x 2%). On March 5, payment is made to Step Music, less a 2% discount. Sage 50 will automatically compute Airways Music’s check amount.
7. Click on the Pay box. The upper portion of the Payments window shows a check. Notice that once you clicked the Pay box 1,940.99 is automatically completed in the $ field. Also, confirm the Discount Account field shows Account No. 5210, Purchases Discounts--Keyboards.
8. Post (Save) this payment, and then close the Payments window.
Printing the Cash Disbursements Journal
1. From the Reports & Forms List, select Accounts Payable; Cash Disbursements Journal.
2. Make the selections to print.
Printing the Purchases Journal
1. From the Reports & Forms List, select Purchase Journal.
2. Make the selections to print.
3. Back up. The suggested file name is 1-3 Application Problem.ptb.
You have completed the work for 1-3 Application Problem Journalizing and posting departmental cash payments.
1 Mastery Problem
Journalizing Departmental Purchases and Cash Payments
The instructions that follow demonstrate how to:
Ø Start Sage 50 2015.
Ø Restore the starting data.
Ø Journalize and post Cash Disbursements Journal transactions.
Ø Complete 1 Mastery Problem.
Before starting 1 Mastery Problem, ask the instructor if Jan’s Jewelry, the company used for 1 Mastery Problem, has already been restored. If Jan’s Jewelry exists as a Sage 50 company, remember to restore An Existing Company rather than a new company.
GETTING STARTED
Restore the 01-MP.ptb file. Each time you begin a problem, restore the starting data from a Sage 50 file. Then, make the appropriate selections to display the Company Information window to include your initials in the company name.
Jan’s Jewelry is a corporation that has two departments: Costume and Fine. Change the company name from Jan’s Jewelry to 01-MP (X’s represent your initials).
Nothing has changed on your computer’s hard drive. In Windows 7, this company is identified in the program folder and data folder as C:\Sage\Peachtree\Company\janjewel. The company name has been changed so that Sage 50 printouts will show the problem number and your initials. Using Maintain; Company Information to rename the company does not change the shortened company name.
DISPLAYING THE CHART OF ACCOUNTS
The 01-MP.ptb file contains starting data for 1-M Mastery Problem. This file includes a chart of accounts for Jan’s Jewelry. Follow these steps to display the chart of accounts that is included in the starting data for 1-M Mastery Problem.
1. Restore the 01-MP.ptb file.
2. If the Getting Started window appears, click on the close button.
3. From the menu bar, select Reports & Forms, then General Ledger.
4. The Select a Report or Form window appears. In the General Ledger Account Information list, click on Chart of Accounts.
5. Click .
6. The Chart of Accounts window appears. Compare your chart of accounts to the one shown.
JOURNALIZING TRANSACTIONS
From the textbook, use the August transactions to journalize and post to the purchase journal and to the cash disbursements journal. (In Sage 50, the cash payments journal is called the cash disbursements journal.) The instructions that follow explain the steps for journalizing and posting to the purchase journal. For purposes of entering transactions, use 2013 as the year.
Purchase Journal: Purchasing Jewelry on Account
Use these steps to journalize and post the August 2 transaction.
Date Transaction
Aug. 2 Purchased fine jewelry on account from Austin Creations, $4,367.00. P567.
Each time you purchase items from a vendor in Sage 50, you use the purchase journal. This is done by selecting Tasks, then Purchases/Receive Inventory from the menu bar or through the navigation bar. The following instructions demonstrate how to access the Purchases/Receive Inventory window from the navigation bar.
1. From the navigation bar, select and click on the icon. Then, choose New Bill.
2. In the Vendor ID field, select 210 – Austin Creations.
3. Type or select 2 in the Date field. Notice that the Apply to Purchases tab is selected. .
4. Type P567 as the Invoice No.
5. In the Description field type Purchased fine jewelry on account.
6. In the GL Account field select 5205 – Purchases—Fine
7. In the Amount field type $4367.00.
8. Post (Save) this purchase, and then close the Purchases/Receive Inventory window.
Printing the Cash Disbursements Journal
1. From the Reports & Forms List, select Accounts Payable; Cash Disbursements Journal.
2. Make the selections to print.
Printing the Purchases Journal
4. From the Reports & Forms List, select Purchase Journal.
5. Make the selections to print.
6. Back up. The suggested file name is 1 Mastery Problem.ptb.
You have completed the work for 1-M Mastery Problem Journalizing departmental purchases and cash payments.
2-2 Application Problem
Journalizing and Posting Departmental Cash Receipts
The instructions that follow demonstrate how to:
Ø Start Sage 50 2015.
Ø Restore the starting data.
Ø Journalize and post customer transactions on account in the cash receipts journal.
Ø Complete 2-2 Application Problem.
Before starting 2-2 Application Problem, ask the instructor if Nelson Auto Parts, the company used for 2-2 Application Problem, has already been restored. If Nelson Auto Parts exists as a Sage 50 company, remember to restore An Existing Company rather than a new company.
GETTING STARTED
Restore the 02-2 AP.ptb file. Each time you begin a problem, restore the starting data from a Sage 50 file. Then, make the appropriate selections to display the Company Information window to include your initials in the company name.
Jan’s Jewelry is a corporation that has two departments: Parts and Tires. Change the company name from Nelson Auto Parts to 02-2 AP (X’s represent your initials).
Nothing has changed on your computer’s hard drive. In Windows 7, this company is identified in the program folder and data folder as C:\Sage\Peachtree\Company nelautpa. The company name has been changed so that Sage 50 printouts will show the problem number and your initials. Using Maintain; Company Information to rename the company does not change the shortened company name.
DISPLAYING THE CHART OF ACCOUNTS
The 02-2 AP.ptb file contains starting data for 2-2 Application Problem. This file includes a chart of accounts for Nelson Auto Parts. Follow these steps to display the chart of accounts that is included in the starting data for 2-2 Application Problem.
1. From the menu bar, select Reports & Forms, then General Ledger.
2. The Select a Report or Form window appears. In the General Ledger Account Information list, click on Chart of Accounts.
3. Click .
4. The Chart of Accounts window appears. Compare your chart of accounts to the one shown.
JOURNALIZING TRANSACTIONS
From the textbook, use the June transactions to journalize and post to the cash receipts journal. The instructions that follow explain the steps for journalizing and posting to the cash receipts journal. For purposes of entering transactions, use 2013 as the year.
Cash Receipts Journal: Receiving Customer Payments on Account
1. From the Navigation bar, select and click on the icon, then choose Receive Money from Customer. The Select a Cash Account window appears.
2. Make sure Cash is selected. Click . The Receipts window appears.
3. Your cursor is in the Deposit ticket ID field. Type the transaction date 06/03/13 and press the <Enter> key.
4. In the Customer ID field, select Sam’s Service Station. Observe that the Apply to Invoices tab is selected.
5. Type S624 in the Check/Reference No. field. Press <Enter>.
6. Type R668 in the Receipt number field. Press <Enter>.
7. Type 3 in the Date field. Press <Enter>.
8. Verify that Account No. 1105, Cash, is displayed in the Cash Account field. Observe that the Balance field displays 4,218.94. That is the starting balance in Account No. 1105, Cash.