QUESTION

RED RIVER COLLEGE

Sage 50 Simply Accounting

Final Examination

Instructions:

1. Download the original Tesses backup file from Chapter 15 in Learn content
2. Add your name to the company name

You are going to enter selected transactions for Tesses Tresses for the month of February.  Tesses is a hair salon in Charlottetown, PEI.  They provide hair care services and also sell a limited range of hair care products.  The building that they own includes two apartments that are rented to students, Atta Schule and Stu Dents.

ACCOUNTING PROCEDURES

Taxes:  HST at 15% is charged on all goods and services sold by the salon.  Tesses remits the HST owing to the Receiver General by the last day of each month for the previous month.

Sales Summaries:  Most sales are to one-time clients who do not have accounts.  These sales are summarized weekly according to payment--by cash or credit card--and entered for the client named Cash Customers. 

Receipts and Bank Deposits:  Cash and cheques received are held for weekly deposits in the temporary bank account, Undeposited Cash and Cheques.  Therefore, Tesses uses this account as the default Receivables linked bank account for all receipts.

Cost of Supplies:  Instead of buying separate salon supplies for client services, Tesses uses its inventory stock of shampoos, conditioners, etc.  Inventory Adjustment entries are completed to make these transfers at cost from the inventory asset account to the supplies account.

INSTRUCTIONS FOR SOURCE DOCUMENTS:

1. Preview the Chart of Accounts before you start entering transactions
2. Some source document numbers will have to be edited
3. Enter the following source documents:

• SD 10, p. 599
• SD 11, p. 600
• SD 12, p. 600
• SD 13, p. 600
• SD 14, p. 600
• SD 16, p. 600
• SD 17, p. 601
• SD 18, p. 601
• SD 19, p. 601
• SD 20, p. 601
• SD 22, p. 601
• SD 23, p. 601
• SD 24, p. 601
• SD 25 , p. 602
• SD 26, p. 602
• SD 27, p. 602
• SD 33, p. 603
• SD 34, p. 603
• SD 35, p. 603
• SD36, p. 603
• SD 51, p. 605
• SD 59, p. 607
• SD 62, p. 608 (There are 2 errors in the text:  change the quantity for Item CN1 from 8 to 5 & change the quantity for Item SHM1 from 11 to 4)

4. Save your work as a backup file called Your Name Final Exam and submit to the Drop Box

Print:

• All Journal Entries for the month of February (uncheck the box Show Corrections)
• Pending Purchase Orders Summary
• Recurring Transactions Report for all transaction types

      Show the instructor your printouts before you exit the program

       Hand in:

• Your printouts
• This examination paper