2. Chapter 10: Maintaining Accounting Records for Service Businesses Chapter 10: Maintaining Accounting Records for Service Businesses Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

3. Service Business Records In Chapter 10, you continue the work started in Chapter 9. You complete the computer accounting cycle for the month of October using the transaction register and bank statement as source documents. Source documents are used to show written evidence of a business transaction. For Dennis Westin Designer, the source documents used are his transaction register and bank statement. The transaction register shows Mr. Westin’s checking account activity. 10-2

4. Sage 50 Tips Sage 50 Tips Chapters 9, 10 and 11 work together. The Dennis Westin Designer service business set up in Chapter 9 is continued in Chapters 10 and 11. The company set up in Exercise 9-1, Art by your first and last name, is continued in Exercises 9-2, 10-1, 10-2, 11-1, and 11-2. 10-3

5. Backing Up Chapter 10 Backup Name (.ptb) Excel (.xlsx)KilobytesPage Nos. Chapter 10 Transaction Register October.ptb979 KB315-316 Chapter 10 October.ptb997 KB329 Chapter 10_October Trial Balance and Financial Statements.xlsx 21 KB329-331 Chapter 10_October Trial Balance.pdf50 KB331 Chapter 10_October Balance Sheet.pdf5 KB331 Chapter 10_October Income Statement.pdf5 KB331 Exercise 10-1.ptb937 KB333 Exercise 10-2.ptb942 KB335  In the textbook, detailed steps are shown for backing up to a USB drive. The chart below shows the size of the backup files, Excel files, and PDF files. You may also backup to a hard drive location. 10-4

6. Backing Up Chapter 10 (concluded) Backup Name (.ptb) Excel (.xlsx)KilobytesPage Nos. Exercise 10-2_October Trial Balance and Financial Statements.xlsx 20 KB335 Exercise 10-2_October Trial Balance.pdf48 KB335 Exercise 10-2_October Balance sheet.pdf4 KB335 Exercise 10-2_October Income Statement.pdf5 KB335 10-5

7. Maintain Global Options From the menu bar, click on Options, Global. Make sure the box next to Recalculate cash balance automatically in Receipts, Payments, and Payroll Entry has a check mark next to it. When you use Receive Money and Write Checks, make sure that the Cash account balance agrees with the textbook’s transaction register balance. The Write Checks window shows the October 2 Cash account balance. 10-6

8. Editing Journal Entries Click on Tasks, then Receive Money. Click. Double-click the deposit you want to edit. Make any necessary changes, then click on Save to post. Editing Write Checks works similarly. 10-7

9. Glossary of Terms Chapter 10 10-8

10. Source Documents Source documents are used to show written evidence of a business transaction. For Dennis Westin Designer, the source documents used are his transaction register and bank statement. 10-9

11. Transaction Register The transaction register shows checking account activity. 10-10

12. Bank reconciliation Sage 50’s Account Reconciliation feature allows you to adjust Mr. Westin’s bank statement. Bank reconciliation is the process of bringing the balance of the bank statement and the balance of the cash account into agreement. 10-11

13. Online Learning Center  Go online to www.mhhe.com/yacht2015 for additional resources. Link to Student Edition, select Chapter 10.www.mhhe.com/yacht2015 o Interactive Testing o Glossary of Terms o Feature Quizzes o Videos: Demonstration of recording checks and deposits. o Narrated PowerPoints o Assessment Rubric o Going to the Net o QA Templates  The OLC also includes Appendixes C and D. 10-12

14. Going to the Net Access the Sage Quantum Accounting website at http://na.sage.com/us/sage-50-accounting/quantum. http://na.sage.com/us/sage-50-accounting/quantum Answer the following. 1. How does Sage Quantum Accounting help you manage your business? 2. List two software management areas included with Sage 50 Quantum. Briefly explain what is included. 10-13

15. Analysis Question What is account reconciliation? 10-14

16. Assessment Rubric TaskDateNavigation CenterWindow Journal Dr. and Cr. ATM (Exercise 10-1) 10/2/15 Deposit (Exercise 10-1) 10/8/15 10-15