2. Chapter 9: New Company Setup and Beginning Balances Chapter 9: New Company Setup and Beginning Balances Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

3. New Company Setup and Beginning Balances, p. 255 Chapter 9 begins Part 2 of the book—Sage 50 Complete Accounting 2013 for Service Businesses. In this part of the book, you are the owner of an accounting practice that does the monthly record keeping for several service businesses. In Chapter 9, you set up two service businesses—David Walsh Designer and the end-of chapter exercise, Crafts by Your Name. You set up a business using one of Sage 50’s sample companies. Then, you record October 1, 2013 beginning balances from Mr. Walsh’s balance sheet. The chapters in Part 2 work together--the service businesses set up in Chapter 9 are continued in Chapters 10 and 11. 2 of 18

4. Sage 50 Tips Sage 50 Tips In Chapter 9, beginning balances are entered from the October 1, 2013 balance sheet (text page 281). This means that the chart of accounts beginning balances must be entered as of September 30. The September 30 ending balances are the October 1 beginning balances. The businesses that you set up in Chapter 9 are continued in Chapters 10 and 11. Remember to use a unique name for the businesses that you set up in Chapter 9. For example, use your first and last name Designer to identify the chapter company and Crafts by (your first and last name) to identify the business set up in Exercise 9-1. When a company is set up in Sage 50, a shortened named is assigned to the company; for example, the shortened company name for David Walsh Designer is davwalde. The Windows 7 default location for David Walsh Designer is C:\Sage\Peachtree\Company\ davwalde. If the student’s first and last name is used, the shortened company name differs. Use Windows Explorer to see the file size, text pages 288-289. 3 of 18

5. Sage 50 Tips (concluded) Sage 50 Tips (concluded) You can restore an existing company—one that is previously set up— or restore a new company, bypassing the process of creating a new company. The Restore Wizard includes two options on the Select Company window: An Existing Company and A New Company. If A New Company is selected, then the company will be named the same as the backup file selected. Let’s say you want to restore a backup file for a company that is not set up in Sage 50; for example, a back up file exists but the company is not shown as a Sage 50 company. If you start Sage 50 and the appropriate company cannot be opened, use the Restore Wizard to select A New Company. Using the appropriate backup file, and the selection for A New Company, you can start where you left off the last time Sage 50 was used. 4 of 18

6. Backing Up Chapter 9 Sage 50 Backup (.ptb) Excel (.xlsx) and Adobe (.pdf)KilobytesPage Nos. Chapter 9 Chart of Accounts.ptb948 KB274-275 Chapter 9 Beginning Balances.ptb952 KB289-290 Chapter 9_Chart of Accounts Beginning Balances.xlsx17 KB290-293 Chapter 9_Balance Sheet.pdf5 KB293 Chapter 9_Chart of Accounts.pdf98 KB293 Exercise 9-1.ptb908 KB297 Exercise 9-2.ptb912 KB299 Exercise 9-2_Chart of Accounts and Beginning Balances.xlsx17 KB299 Chapter 9-2_Chart of Accounts.pdf8 KB299 Exercise 9-2_Balance Sheet.pdf5 KB299  In the textbook, detailed steps are shown for backing up to a USB drive. The chart on pages 253-254 shows the size of the backup files, Excel files, and PDF files. 5 of 18

7. Business Status Navigation Center, p. 263 Navigation Bar Period 10 - 10/01/13- 10/31/13 6 of 18

8. Shortened name for David Walsh Designer (Read me box, p. 263) A folder is set up on the hard drive for David Walsh Designer— C:\Sage\Peachtree\Company\ davwalde. (If you are using Vista or XP, refer to Company Data Files location, text pages x-xi.) Sage 50’s shortened name is the first three letters from the first word (dav), the second word’s first three letters (wal), the third word’s first two letters (de). If you used your first and last name, the shortened name will differ. 7 of 18

9. Entering Chart of Accounts Beginning Balances, pages 281-283 Follow steps 1-3 on pp. 281 and 282 to select the beginning balance period. (The Select Period window is shown below step 3 on p. 282). Make sure you have selected From 9/1/13 through 9/30/13. You cannot change the period later. Then, click on. Make sure that From 9/1/13 through 9/30/13 is selected. 8 of 18

10. Chart of Accounts Beginning Balances window, pp. 282-285 Make sure that your beginning balances are as of September 30, 2013. If you enter your balances for the wrong month (period), your financial statements will not show the current month and year-to-date amounts correctly in Chapter 11. Complete steps 7 and 8, pp. 284-285. 9 of 18

11. Display the September 30, 2013 Balance Sheet, pp. 285-286 Follow steps 1-3 on page 285 to change the date displayed on the Balance Sheet. September 30 ending balances are October 1, 2013 beginning balances. Display the balance sheet for September 30 so you can check that you entered chart of accounts beginning balances correctly. 10 of 18

12. Glossary of Terms Chapter 9 11 of 18

13. Posting, p. 251 Part 2 opener One of the best features of a computerized accounting system is how quickly posting is done. Once entries are recorded and checked for accuracy, posting is a click of the mouse. All entries are posted to accounts in the general ledger and account balances are calculated—fast, easy, and accurate. This diagram illustrates the process. Journalize and Post General Ledger Financial Statements 12 of 18

14. Balance Sheet, p. 280 A Balance Sheet lists the types and amounts of assets, liabilities, and equity as of a specific date. The balance sheet is also called a statement of financial position. 13 of 18

15. Statement of Financial Position, p. 280 The statement of financial position is also known as a balance sheet. 14 of 18

16. Online Learning Center  Go online to http://www.mhhe.com/yacht2013 for additional resources. Link to Student Edition, select Chapter 9.http://www.mhhe.com/yacht2013 o Interactive Testing: Online multiple-choice and true and false questions. Tests are graded and can be emailed to instructor. o Glossary of Terms: Boldfaced/italicized words within chapter. o Feature Quizzes: Includes user interface questions, matching, and review of chapter concepts with immediate feedback. o Videos: Demonstration of setting up a new company. o PowerPoints: Narrated slides. o Assessment Rubrics: Reviews journal entries, reports, navigation centers, modules, and task windows. o Going to the Net: Internet research. o QA Templates: 10 multiple-choice questions and the analysis questions. 15 of 18

17. Going to the Net Access information about the chart of accounts at http://en.wikipedia.org/wiki/Chart_of_accounts. Read the information on Wikipedia’s chart of accounts website. http://en.wikipedia.org/wiki/Chart_of_accounts 1. What is the chart of accounts? 2. List four asset accounts, two liability accounts, two equity accounts, one revenue account, and three expense accounts. 3. What is the trial balance? 16 of 18

18. Analysis Questions 1. What chart of accounts beginning balance date is used for entering October 1, 2013 account balances in Sage 50? 2. How does the account beginning balance date affect the current month and year-to- date amounts on the financial statements? 17 of 18

19. Assessment Rubric TaskDateSelectionsWindow Shortened Company Name October 1, 2013 Beginning Balances 18 of 18